Energy conservation direction and economic growth

Authors

  • Amnart Yasothorn
  • Pard Teekasap
  • Sombat Teekasap

Abstract

In this study, a system dynamics model with electricity consumption and economic growth by focusing on Thailand. According to data from 1999-2012, In case of how “reducing electricity consumption according to government policy” can provided any effect to the economic growth. This study of electricity consumption has been performed in 3 sections; Commercial, Industrial and Residential. This research investigated the effect of reducing electricity consumption due to government policy in 2 cases, “reserve” the saving that left from electricity cost reduction (case 1) and “spend” the saving that left from electricity cost reduction after subtract with net saving (case 2), all economic growth was reduced for both case. In first case, the economic growth of industrial section was most affected, followed by commercial and residential respectively.  In second case, all economic growth was also reduced. Industrial section was the most affected by the most short-term economic growth reduction then followed by commercial and residential section but for the long-term economic growth reduction, commercial section was the most affect then followed by industrial and residential section. From study of both case, the research showed that “reserve” the saving that left from electricity cost reduction was cost more economic growth reduction more than “spend” the saving that left from electricity cost reduction after subtraction with net saving.

References

Yoo, S. H. (2006). The causal relationship between electricity consumption and economic growth in the ASEAN countries. Energy policy, 34(18), 3573-3582.

Shiu, A., & Lam, P. L. (2004). Electricity consumption and economic growth in China. Energy policy, 32(1), 47-54.

Yuan, J., Zhao, C., Yu, S., & Hu, Z. (2007). Electricity consumption and economic growth in China: cointegration and co-feature analysis. Energy Economics, 29(6), 1179-1191.

Shengfeng, X. (2012). The relationship between electricity consumption and economic growth in China. Physics Procedia, 24, 56-62.

Altinay, G., & Karagol, E. (2005). Electricity consumption and economic growth: evidence from Turkey. Energy Economics, 27(6), 849-856.

Chen, S. T., Kuo, H. I., & Chen, C. C. (2007). The relationship between GDP and electricity consumption in 10 Asian countries. Energy Policy, 35(4), 2611-2621.

Yoo, S. H., & Kwak, S. Y. (2010). Electricity consumption and economic growth in seven South American countries. Energy Policy, 38(1), 181-188.

Mozumder, P., & Marathe, A. (2007). Causality relationship between electricity consumption and GDP in Bangladesh. Energy policy, 35(1), 395-402.

Ahamad, M. G., & Islam, A. N. (2011). Electricity consumption and economic growth nexus in Bangladesh: Revisited evidences. Energy Policy, 39(10), 6145-6150.

Osigwe, A. C., & Arawomo, D. F. (2015). Energy consumption, energy prices and economic growth: causal relationships based on error correction model. International Journal of Energy Economics and Policy, 5(2).

Zaman, M., Shaheen, F., Haider, A., & Qamar, S. (2015). Examining Relationship between Electricity Consumption and its Major Determinants in Pakistan. International Journal of Energy Economics and Policy, 5(4).

Mohamed, E. S. A., (2014). Testing the relationship between private savings and economic growth : case study of Bahrain. G.J.C.M.P, Vol.3(1), 38-44.

Forrester, J. (1960). W.(1961). Industrial Dynamics.

Richardson, G. P., & Pugh III, A. I. (1981). Introduction to system dynamics modeling with DYNAMO. Productivity Press Inc..

Wolstenholme, E. F. (1990). System enquiry: a system dynamics approach. John Wiley & Sons, Inc..

Sterman, J. D. J. D. (2000). Business dynamics: systems thinking and modeling for a complex world (No. HD30. 2 S7835 2000).

Yoo, S. H. (2005). Electricity consumption and economic growth: evidence from Korea. Energy Policy, 33(12), 1627-1632.

National accounting statistics processing habd book, Office of the National Economic and Social Development Board, Office of the Prime Minister, Thailand. [online] Available : www.nesdb.go.th/ewt_dl_link.php?nid=3521

Stevenson, W. J., & Sum, C. C. (2002). Operations management (Vol. 8). New York, NY: McGraw-Hill/Irwin.

Lewis, C. D. (1982). Industrial and business forecasting methods: A practical guide to exponential smoothing and curve fitting. Butterworth-Heinemann.

Downloads

Published

16 January 2018

How to Cite

Yasothorn, A., Teekasap, P., & Teekasap, S. (2018). Energy conservation direction and economic growth. Journal of Renewable Energy and Smart Grid Technology, 12(2), 1–12. Retrieved from https://ph01.tci-thaijo.org/index.php/RAST/article/view/85703

Issue

Vol. 12 No. 2 (2017): July - December 2017

Section

Articles

License

All copyrights of the above manuscript, including rights to publish in any media, are transferred to the SGtech.

The authors retain the following rights;

            1. All proprietary rights other than copyright.

            2. Re-use of all or part of the above manuscript in their work.

            3. Reproduction of the above manuscript for author’s personal use or for company/institution use provided that

            (a) prior permission of SGtech is obtained,

            (b) the source and SGtech copyright notice are indicated, and

            (c) the copies are not offered for sale.