Abstract

In this study, we make the theoretical model and estimate the contribution rate of rural hydropower resource to economic growth by using the Cobb-Douglas production function in Zhejiang province, china. The result shows that there is a long-term equilibrium relationship between GDP and labor, capital stock and hydropower consumption quantity. The output elasticity of capital, labor and energy consumption were 1.62, 2.19, 0.189, that is to say, electricity consumption increased by 1%, GDP will increase by 0.189%, so we can calculate the real GDP pulled by per kW•h, then it multiply the number of rural hydropower resources, We draw the following conclusions: Real GDP pulled by rural hydropower resources is 40.70 billion RMB in Zhejiang province during 1990-2012; the primary industry is 3.49 billion RMB, the second industry is 21.29 billion RMB and the third industry is 15.92 billion RMB.

Keywords:

Agricultural economy, Cobb-Douglas production function, rural hydropower resource, Zhejiang province,

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The authors have no competing interests.

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