Analysis Of The Relationship Between Chinese Energy Consumption And Economic Growth

Energy is one important input of economic growth. According to general rule, the input factor is rising with the economic growth. Energy consumption is affected by technology improvement, industrial structure and management. So there is an un-proportional and direct ratio between our national energy consumption and economic growth.This paper analyzes the relationship between energy consumption and economic growth. Based on the production function, we get out the long-term equilibriums between energy consumption and economic growth after the econometric analysis on factors such as GDP, energy consumption, capital stock and human capital from 1953 to 2003. Therefore, there is a mitigating endogenesis between energy consumption and economic growth through the analysis on fluctuation of the former factors.In the process of pursuing healthy and persistent economic development, the problems including the gross and structure contradictions between energy supply and demand as well as the damages on entironment caused by routine energy exploitation and consumption, cumber persistent economic development. Therefore, in the course of promotion traditional energy industry and reproducible energy industry, we should accelerate technology improvement, optimize industrial structure, consummate market system and related legal system in order to reducing those negative effects.