Empirical Analysis On The Relationship Between Industrial Energy Consumption And Industrial Economic Growth In China

Today following the rapid development of China's industrial economy, industrial energy consumption accounts for the vast proportions of the total energy consumption. For example, in 2010, the proportion of the total industrial energy consumption is 71.3%. In today's highly globalized economy, a substantial increase in energy prices and a sharp deterioration in environmental quality is bound to have far-reaching impact on China's industrial economy. Therefore, the study on the sustainability of industrial development in China can no longer ignore the energy factor.This article tries to summarize the research on energy consumption and economic development of current domestic and foreign scholars. Then explains the concept of energy, classifies it, summarizes China's industrial structure development since China's reform and opening-up, and compares the energy consumption of China and the other countries. Next, using the method of descriptive statistics, studies on the basic situation of industrial energy consumption and industrial economic growth and discusses the relationship between the two, combining the cases of history and reality.Then, based on the assumption of linear regression, the author does cointegration tests. Next, uses nonlinear STR models and LM test statistic, and applies to the empirical research of China's industrial energy consumption and industrial growth, revealing the structural relationship between the two. The results show that: First, on the condition of line assumption, there exists one and the only one relationship between China's industrial energy consumption and industrial growth, which is the one-way Granger causality relationship from industrial energy consumption to industrial growth. Second, on the condition of linear assumption, the stable equilibrium relationship between industrial economic growth and industrial energy consumption does not exist. Third, through the establishment of non-linear LSTR model, the industrial energy consumption has a strong influence on the industrial economic growth. Forth, there exists non-linear relationship between China's industrial energy consumption and industrial growth. When the absolute growth of GIP goes up, the energy consumption rises even faster than the speed of GIP, acting as the blood of industrial economic development; and vice versa.Finally, based on the empirical analysis and combined with the actual situation of China's current industrial energy consumption, the thesis proposes that, to maintain sustainable economic development of China's industrial energy is to promote industrial restriction and upgrading the industrial structure, accelerate renewable energy project development, and improve the energy legal system.