Economic Impact of Modern Energy Infrastructures Investments on the Regional Economic Growth of Guangdong Province in China

In this paper, we built the Guangdong’s regional input-output model, with an inter-industry linkage to evaluate the impact of modern energy infrastructure on regional economic growth during the 13th Five-Year Plan period. We analyzed the economic impact of increased governmental and industrial spending on infrastructure projects. An overview of the Leontief I-O model employed in this paper was presented in Section 2. In Section 3 we demonstrated the economic effect of static I-O analysis of renewable energy infrastructures investment from the policy-planning perspective. The policy simulation result of the input-output model in this paper could be seen as the maximal possible economic outcome in the period from 2016 to 2020, in which low-carbon power plants construction will add roughly 4% of gross domestic products of Guangdong annually. One of the advantages of Leontief input-output model is its ability to assess the possible maximum economic benefits in the short-run. As we have seen, the energy engineering infrastructure investment has increased the final demand of other related manufacturing sectors whose obligation is to accomplish infrastructure construction.