Template-Type: ReDIF-Paper 1.0
Author-Name: Chun-Yu Ho
Author-X-Name-First: Chun-Yu 
Author-X-Name-Last: Ho 
Author-Email: chunyu@bu.edu
Author-Workplace-Name: Boston University, Department of Economics

Author-Name: Kam Wing Siu	
Author-X-Name-First: Kam Wing 
Author-X-Name-Last:  Siu
Author-Email: eckwsiu@bu.edu
Author-Workplace-Name: Boston University, Department of Economics

Title: A Dynamic Equilibrium of Electricity Consumption and
GDP in Hong Kong: An Empirical Investigation


Abstract: Public debates on electricity policy in Hong Kong focus on the regulation regime but sel-
dom discuss the macroeconomic impact. In this paper, we use the novel dataset on electricity
consumption and report the following ?ndings: (1) there is a long run equilibrium relationship
between real GDP and electricity consumption, (2) a one-way causal e¤ect exists from electric-
ity consumption to real GDP, (3) a signi?cant adjustment process occurs when equilibrium is
interrupted, (4) there exists possible structural change in the relationship between electricity
consumption and economic activities in 1990s.

Length:  22 pages
Creation-Date: 2006-09
Revision-Date: 
Publication-Status:
File-URL: http://www.bu.edu/econ/workingpapers/papers/electricity0906.pdf
File-Format: Application/pdf
File-Function: 
Number: WP2006-049
Classification-JEL: Q41, Q43, Q48
Keywords: Cointegration and error correction; electricity; Hong Kong.
Handle: RePEc:bos:wpaper:WP2006-049