Research On Energy Saving Policy And The Relationship Between Energy Consumption And Economic Growth In Beijing

As the driving foree of economic development, energy Plays a vital important role in economic development. Since the reform and opening up, economic development has been very fast in Beijing. Industrial structure adjustment and economic growth patterns have taken place dramatic changes. These changes have a very big impact on energy consumption. As the same time, Beijing has become the second largest energy consumer city in China. Therefore, Energy saving and environmental protection is the important practical problem in the sustainable development of economic social in Beijing. Under this background, the research of the relationship between energy consumption and the economy development as well as the analysis of the main factors of energy efficiency is the key to Beijing' energy-saving and emission reduction.This paper has investigated the cointegration relationship among economic growth, energy consumption, capital, and labor in Beijing. The sample spans the period 1978-2007. To test for Granger causality in the presence of cointegration among the variables, we employ vector error correction models where both short and long-run channels of causality could be exposed. The empirical results of vector error correction models indicate that there is a unidirectional Granger causality running from GDP to energy consumption in the short run, while a bidirectional Granger causality in the long run. The findings of variance decompositions were then checked for robustness of causality tests. Variance decomposition reveals the relative variance contribution of different variables, and further confirms the conclusions of Granger causality. The routing of strategy choice and proposals of energy saving policy to reduce the energy intensity of Beijing were discussed from the economic development model, the adjustment of industrial structure, the layout of industry structure, and so on.