4.6 Article

Residential and industrial electricity consumption in Taiwan: Weather or macroeconomic condition (or both)

Journal

ENERGY STRATEGY REVIEWS
Volume 39, Issue -, Pages -

Publisher

ELSEVIER
DOI: 10.1016/j.esr.2021.100795

Keywords

Residential electricity consumption; Industrial electricity consumption; Weather condition; Macroeconomic condition

Categories

Ask authors/readers for more resources

This study investigates the evolution of electricity consumption in residential and industrial sectors in Taiwan, finding that aggregate and regional factors play a significant role in explaining variations in consumption. Additionally, temperature change and business cycle indicators are found to be useful in predicting changes in electricity consumption.
This study investigates the evolution of electricity consumption across residential and industrial sectors in Taiwan. By applying the dynamic factor model, we classify the fluctuations in electricity consumption into aggregate, regional, and individual factors, which sheds light on the latent dynamics of the electricity market. The empirical result shows that around 73% of residential electricity consumption variations are explained by the aggregate and regional factors. Moreover, the aggregate factor contributes 79% to the industrial electricity consumption variation. Interestingly, this study finds a distinct pattern of latent aggregate factor development across the two sectors. Finally, this study finds that temperature change and business cycle indicator help to predict changes in common elements in the variations in residential and industrial electricity consumption based on the linear and non-linear Granger causality test. This finding suggests that the aggregate factor index, together with temperature change and business cycle indicators would be great indicators for monitoring electricity consumption in Taiwan.

Authors

I am an author on this paper
Click your name to claim this paper and add it to your profile.

Reviews

Primary Rating

4.6
Not enough ratings

Secondary Ratings

Novelty
-
Significance
-
Scientific rigor
-
Rate this paper

Recommended

No Data Available
No Data Available