Influences Of Energy Price Rising On Chinese Macroeconomy

Chinese economy is growing up at a high speed.Industrialization is the most obvious characteristic during the period of China,which means that Chinese energy consumption will grow rapidly.It is very urgent for China to decrease the unreasonable energy demand and use energy more efficiently.From the angel of economics,price is the most efficient way to solve the urgent problem.In order to make price play its role in the market,China must reform its energy pricing mechanism.However,Chinese energy price have been depressed for a long time.So, reforming Chinese energy pricing will inevitably raise the prices of various energies. It is why we should know what will happen when the energy prices go up.In this paper,academic analysis and empirical research were used to explain the influences of energy price rising on macroeconomy.Through empirical research based on vector auto-regression,we find that one unit energy price rise impulse will cause the industry development to slow down 0.588%compared with the same period of last year.Through empirical research based on input-output price model,we find that prices of other industries will go up with the energy price rising.However prices of various industries respond to energy price rising on different levels.Because rising energy price will slow down economic development of China,the process of reforming the energy pricing mechanism should be taken gradually.When reforming the energy pricing mechanism,the government should consider the burden of all consumers,especial the burden of the resident.Allowance should be calculated scientifically and be allocated reasonably.