The Impacts of the Internal Structure of GDP on the Electricity Consumption in China

Using a new prediction model based on rough set theory, we investigate the impacts of the internal structure of GDP on the electricity consumption with annual data over the period 1980~2004 in China. The new prediction model is established by presenting a related relation prediction method according to the concept of objects, information entropy, and rules in rough set theory. The empirical results show that the internal structure of GDP has different impacts on the electricity consumption. The largest contributor to the change of electricity consumption is disposal income, followed by investment and export. However, the price has no significant impacts on the change of electricity consumption. The results show that the prediction model not only can be used to effectively reveal the influence mechanism and influence degree of the four explanatory variables on electricity consumption in china, but also can be used to forecast electricity consumption. Finally, policy implications to save electricity power are discussed in this paper.