Research On The Relationship Of Economic Growth And Energy Consumption In Liaoning Province

Energy is the important material guarantee for the social economic development. On the one hand, the energy input will promote economic growth. On the other hand, only a healthy economic development can keep the energy sustainable. But this can also brings a series problem that the economic development always cost to energy growth. Now, our country are trying to advocate energy saving to realize the sustainable development of energy and economy. As one of old northeast industrial base, the energy consumption in Liaoning is faster than its production, the contradictions between supply and demand appears, and also with the energy consumption and economic growth. These contradictions has restricted the direction of the economic development of Liaoning, to solve this problem, we must make sure of the relationship of the energy consumption and economy.And this paper's main idea is: research the relationship of the energy consumption and economy,study its scale,characters and present situation during 1978-2008. And use the Eviews 6.0 software to analyze the total energy consumption,area GDP,industrial added. And the result shows a balance relationship between these. And it also shows that, there is a long-term equilibrium relationship between energy consumption and economic growth in Liaoning province. And from the Causality Test, we determined that there is a one-way causality from GDP and industrial added value to the energy consumption. That is to say, the increases in GDP or industrial added value will improve the total energy consumption but there is no causality between the former and latter. From the text, we can also see that: Liaoning is not a Energy-Dependent Province, with a good way, the energy saving policy won't affect the increase in GDP or industrial added value, and in a long term, it won't affect the economic development too. Finally, from establishing a Error-Correction model, we can know that the short-time fluctuation of energy consumption affected by the change of GDP, and also the deviation of the long-term balance. From the model, we can see that, the energy consumption will change in pace with the GDP and industrial added value, the Error-Correction coefficient meet with the Reverse-Correction mechanism. When the energy consumption deviate the balance, the Error-Correction term will make it back to the long-term balance. Under a dual demonstration of rigorous description analysis and econometric analysis, to consider with the economic development, it urgent need to introduce a Resource-Saving economic system, response to the national"Energy Conservation"policy, and proposed a series of policy recommendations to keep the sustainable energy consumption and economic growth in Liaoning.