Taiwan's Electricity Demand Under the COVID-19 and Supply Chain Disruption

Our research aims to find the alteration in electricity consumption during supply chain disturbance following the COVID-19 pandemic, while seeking to elucidate the island-wide power blackout in Taiwan in May 2021. The inquiries addressed are as follows: initially, the income elasticity of electricity consumption decreases over time. We present evidence indicating a decoupling between electricity consumption and GDP, linked to higher overseas production ratio of export orders being produced. Secondly, as a result of the supply chain disruption, the income elasticity of electricity consumption escalates, and Taiwan experiences GDP growth. Electricity consumption increases rise through both channels. Lastly, utilizing a nonlinear model for prediction yields more accurate projections, potentially averting power outages.