The economic value of the electric power industry in China: an empirical analysis based on input-output analysis

The electric power industry plays an important role in the economic development of China. It is not only an important fundamental energy industry in economic development, but also one of the important sectors promoting the economic growth and social progress of China. The economic value of this industry is reflected by the electric power industry as well as upstream and downstream industry chain closely related to the economy and technique relations of this industry. Based on influence coefficient and reaction degree coefficient, this paper builds the model of direct and indirect economic value with input-output analysis. And China´s input-output tables from 1987 to 2007 are also used to analyze the direct and indirect economic value of the industry with the Push-pull Model, revealing that electric power industry is critical to the economic growth of China. The conclusion indicates that: 1. Electric power industry has an obvious effect on the development of other industries or sectors, and it is one of the key factors affecting economic development; 2. The indirect economic benefits other industries gain from the electric power industry is greater than the direct part; 3. Electric power industry´s push functions are much stronger than its pull functions, which means this industry´s forward linkage is greater than its backward linkage, indicating the importance of electric power industry in the economy as an energy-based sector.