Application of co-integration theory in electricity-demanding forecast modelling in Jiangsu Province

In this paper, the increasing trajectories of economic-demands and electricity-demands in some advanced-development countries and corresponding provinces in China are compared and analyzed. Based on this analysis, the forecast method for the electricity demand in future 40 years in Jiangsu Province is proposed. According to Co-integration Theory, the key economic factors are selected for the construction of the econometric model to describe the balanced relationship between the economic development and electricity demands. Finally this model is utilized to forecast and verify the proposed method.