Factor analysis of productivity of the energy sector of China

Authors

  • Aliaksei A. Bykau Belarus State Economic University, 26 Partyzanski Avenue, Minsk 220070, Belarus
  • Wang Qiang Sinohydro Corporation Limited, 57b Surganava Street, Minsk 220100, Belarus

Keywords:

China, tables «input – output», electricity industry

Abstract

A hypothesis has been formulated suggesting that the electric power industry could have developed extensively during China’s period of rapid economic growth. The conditions for extensive economic growth in the electric power industry are outlined, including an increase in the contribution of labour and mineral resources to the cost of electricity and an increase in the ratio of electricity services to gross domestic product. Data from China’s tables «input – output» at current prices for the period from 1981 to 2018 is analysed. The cost structure of the industry «Electricity, gas, and water production and distribution» is assessed. It is assumed that approximately 82 % of the industry’s final output is electricity. The key factor influencing electricity output is shown to be the diagonal of the industry’s direct cost matrix (energy in energy). It has been demonstrated that since 2007, this indicator reflects double-counting in the industry rather than physical electricity losses. Taking this fact into account, the conditions for extensive growth in the electric power industry have been adjusted. The calculations revealed no clear and consistent signs of extensive growth in China’s electric power industry during the study period. China’s electric power industry is characterised primarily by intensive growth, is developing on the basis of innovation, and is not currently considered a factor hindering economic growth.

Author Biographies

  • Aliaksei A. Bykau, Belarus State Economic University, 26 Partyzanski Avenue, Minsk 220070, Belarus

    doctor of science (economics), full professor; vice-rector for research

  • Wang Qiang, Sinohydro Corporation Limited, 57b Surganava Street, Minsk 220100, Belarus

    general representative

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Published

2026-07-10

Issue

No. 1 (2026): Journal of the Belarusian State University. Economics

Section

Q. Agricultural and Natural Resource Economics • Environmental and Ecological Ec

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Copyright (c) 2026 Journal of the Belarusian State University. Economics

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How to Cite

[1]
Bykau, A.A. and Qiang, W. 2026. Factor analysis of productivity of the energy sector of China. Journal of the Belarusian State University. Economics. 1 (Jul. 2026), 131–143.