Empirical Research On The Relationship Between China's New Energy Consumption And Economic Growth

Energy consumption which based on the traditional mineral is increasing day byday with the rapid development of world economy.It leads to the sharp rise in thevolume of waste emissions and the increasingly serious environmental problems,which have become a major obstacle for the global economic development andimprovement of life quality.In order to realize the sustainable development ofeconomy,many countries have turned to the development and utilization of newenergy.In this background,the relationship between China's new energy consumptionand economic growth has important theoretical and practical significance forformulation of new energy policy and development of new energy-based low-carboneconomy.The main research contents and results are the following.(1)This article summarizes the development situation on the current domesticand international new energy industry.Firstly it analyzes the changes of domestic andforeign energy consumption structure,and then follows to introduce the developmentand utilization of world and China's new energy,lastly represents the characteristics ofChina's new energy consumption.(2)This paper considerers China's total energy consumption as the third kind ofproduction factor into Cobb-Douglas production function and then studies empiricallythe relation between the China's total energy consumption and economic growth,which uses relevant economic data from1978to2010years including new energy.Then it tests the relationship between China's energy consumption and economicgrowth through the Cointegration theory.The results show that there exists long-termequilibrium relation between China's energy consumption and economic growth andestablish long-term equilibrium model.Through the use of Granger causality test itproves that China's total energy consumption has a one-way causal relationship oneconomic growth.(3)This paper also studies the relationship between new energy consumptionmainly including wind energy,hydropower and nuclear power,and economic growth.It proves that China's new energy consumption and economic growth has long-term equilibrium relationship by using cointegration and error correction model theory,then builds long-term and short-term economic growth model.By the Grangercausality test there has two-way causal relationship between new energy consumptionand economic growth in a significant level of10%,so it draws an importantconclusion that the development of China's new energy industry and nationaleconomy influences each other.(4)This study establishes translog production function which includes fourvariables,such as new energy,conventional energy sources,the actual total capitalaccumulation and labor input.Then this paper solves empirically the practicalcontribution rate for the output elasticity of four variables every year to economicgrowth by statistic software of SPSS19.0using relevant economic data from1978to2010years.The focus is the differences of contribution rate for new energy andconventional energy which are analyzed.(5)Finally,this paper puts forward some useful suggestions for the developmentof China's new energy industry combined with the previous researches,and proposesthe problems which need to be further studied between new energy and economicgrowth.