The Impact of Changes in Primary Energy Prices and Electricity Prices on the Industrial Energy Structure

With the continuous advancement of global energy transformation, the impact of energy price fluctuations on the industrial energy structure has become an important research topic. Based on the annual data of Zhejiang Province, this paper adopts the improved NL-CES (nonlinear constant elastic substitution) model to quantitatively analyze the impact of coal, natural gas, oil and electricity price fluctuations on the industrial energy structure. By considering the substitution effect between energy sources, the model describes the industrial sector in the face of energy price changes, estimates the energy substitution elasticity coefficient through regression analysis, and applies these coefficients to predict the change in energy consumption after price changes. This paper provides a new quantitative analysis method for the impact of energy price fluctuations on the industrial energy structure, and combines actual data to demonstrate the potential impact of energy price changes. It provides an important reference for governments and enterprises in energy pricing, policy regulation and energy structure optimization.