The Effect of Electricity Consumption Level in Energy Sector, Industrial, Transportation, Agricultural, Services, and Residential on the GDP Output in Taiwan
As national income is largely determined by the level of domestic household consumption and investment in infrastructure and machineries, GDP output is hypothesized to be correlated with the national electricity consumption level. This study examines the correlation between total electricity usage and the GDP output in Taiwan, and how the six sectors of electricity usage, namely energy sector own use, industrial, transportation, agricultural, services, and residential, are intercorrelated. This study utilized secondary data collected by the Bureau of Energy, Ministry of Economic Affairs, R.O.C to perform correlation analysis, regression test, and principal component analysis. The finding of this study suggests that total electricity consumption level has a positive and significant correlation with the GDP output in Taiwan, and that services, residential, industrial, and agricultural electricity usage have significant correlation among them. On the other hand, the energy sector's own use of electricity is not correlated with any other sectors of electricity usage.
Keywords - Gross Domestic Product, Consumption Level, Industrial Electricity Usage, Residential Electricity Usage, Energy Usage