Electricity Economics: Production Functions with Electricity

Dr. Zhaoguang HU is the vice president and chief energy specialist at the State Grid Energy Research Institute (former State Power Economic Research Institute) as well as the head of the Power Supply and Demand Research Laboratory. He is the director of Power Economic Committee of CSEE (Chinese Society of Electric Engineering). He is an honorary professor at North-China Electric University and Beijing Jiaotong University. He is a chief editor of Energy Technology and Economics (Chinese).His main areas of interest are: low-carbon energy, energy economy, energy efficiency and demand side management (DSM), smart grid, and policy study on the above areas. Dr. Hu was one of the main contributors of the China's DSM white paper 2007. From 2004 to 2007, many of his suggestions on DSM policy have been accepted by the Chinese government, including China's DSM regulation and the revised Energy Conservation Law. He was a team leader of the World Bank's project, "DSM in China's Restructured Power Industry - How Regulation and Policy Can Deliver DSM Benefits to a Growing Economy and a Changing Power System," in 2004. With experiences on DSM, he is familiar with electricity consumption on customer side. In 2000, he had studied the nine years economic cycle of China based on relationship between GDP and electricity consumption. Then, he pointed that 2007-2008 would be the lowest growth of the economy in China. It was true that the growth of electricity was only 5.3% and GDP was 7.5% in 2008. It was also the global financial crisis in 2008. He has been invited to give many presentations by international organizations such as GEF of the World Bank, Lawrence Berkeley National Laboratory in USA, MIT in USA, Asia Development Bank, Europe Council of Energy Efficiency Economy etc. He has studied the methodology of economics of electricity consumption. The production function from electricity consumption is the fundamental of the economics of electricity consumption. Based on that, the national E-GDP function (electricity and GDP function) has been studied. Then, GDP can be calculated from electricity consumption. It will be useful for government, researcher and other scholars study on that since the data of electricity is very accurate and very easy to get it monthly. He received the Special Contribution Award from the Chinese government for greatly contribution to China's science development in 1998. He has published more than 140 papers and a few books as "Integrated Resource Strategic Planning-Theory, Methodology and Applications", "Policy Simulation on Energy Supply and Demand--A Social Science Laboratory Based on Intelligent Engineering", "Electricity Demand Outlook in China--Simulation Based on Laboratory of Power Supply and Demand Research", "Exploring China's Economic Development and Electricity demand by 2050--The Simulation with ILE4","Fuzzy Mathematics and The Application in Power Sector" including two English books which one is published by Springer. He received his Bachelor of Science at Huadong Petroleum Institute in 1982, and Master and PhD at Electric Power Research Institute of China in 1984 and 1989 respectively.

• Introduction.- Production Functions with Electricity: The Enterprise Level.- Production Functions with Electricity: The Sectoral Level.- The Supply and Demand Models Based on Electricity Consumption.- Production Functions with Electricity: The Industrial Level.- E-GDP Functions for a National Economy.- The Characteristics of Gene in an Economy.- Energy Intensity and Electrification.- Features of Electricity Consumption During the Economic Development Stages.- Up-industrialization.- E-GDP Functions for the World and Particular Countries.- Macroeconomic and Policy Models.- Updates of the Input-output Table and the Electricity Input-output Table.- Impact Factors of Industrial Electricity Demand.- Models of Electricity with Capital and Labor.