Study On The Effect Of Energy Consumption To Economic Growth In China

Energy is the essential material for human survival, and is the important resource for economic development and social progress. Therefore, as the largest developing country in the world, China's rapid economic growth based on high consumption and ultra-waste of energy. At present, China has not only become the second largest energy consumer but also the fastest-growing energy consumption country in the world. However, if the consumption trend continues, energy problems will inevitably become a bottleneck in China's economic development with the rapid economic development. In addition, while the long-term coal-based energy consumption structure promoted China's rapid economic and social development, it also brought a series of negative effects to our lives. To some extent, the phenomenon is not only restricted the development of human society, but also damage to the ecological environment, and even a threat to the survival of mankind itself. Therefore, the study of the effect energy consumption to China's economic growth has absorbed high attention of the academic community in the world wide, and it appeares a large number of valuable research results.From the point of promoting China's economic growth, in order to have a full realization of the relationship between energy consumption and economic growth, formulate the energy development planning and economic development policy, and rationalize China's energy consumption while making a greater role in economic growth, the author combin qualitative research method and quantitative research method, theoretical research method and empirical research method, make use of relevant theoretical model and econometric software (Eviews 6.0) as the tool, and make a study on the specific effect of total and the composition of energy consumption to China's economic growth both in long term and short term.In the part of qualitative analysis, this article uses three kinds of indicators to measure the effect of energy consumption to China's economic growth, which include Energy Consumption Intensity, Elasticity Ratio of Energy Consumption, and Efficiency of Energy Conversion. Through the trend of indicators we can learn: the effect of energy consumption to economic growth gradually heightened with fluctuation, while the energy efficiency is also gradually improving; In the part of quantitative analysis, this article takes energy development and energy industry emergence in 1990th as the background and chooses the data from 1990 to 2008 as the sample. Firstly, it treats energy consumption as an independent element, introduces it to the Cobb-Daugias production function, and constructs the three elements logarithmic model. Secondly, it respectively does the quantitative analysis between economic growth and the total energy consumption, coal consumption, oil consumption, gas consumption, and electricity consumption. After measuring the effect of total energy consumption to economic growth, it also analyzes the promotion or inhibition effect of different kinds of energy consumption on economic growth. Among the results, the cointegration test shows that:energy consumption, coal consumption, gas consumption and electricity consumption play long-term significant positive effect on economic growth. Each 1% increase in energy consumption, coal consumption, gas consumption, and electricity consumption can respectively lead to 0.59%,0.49%,0.29%, and 0.53% increase in economic growth. On the contrary, there is no long-term equilibrium relationship between oil consumption and economic growth; The error correction model shows that:in short term, energy consumption and economic growth, coal consumption and economic growth are positively correlated. Current energy consumption and coal consumption up by 1% can respectively produce about 0.19% and 0.14% GDP growth. While, the gas consumption and economic growth, electricity consumption and economic growth are negatively correlated. Gas, electricity consumption in the previous year up by 1% can respectively reduced 0.14% and 0.19% GDP growth; The Granger causality test shows that:economic growth is the Granger causality of energy consumption, coal consumption, gas consumption, electricity consumption, but total energy consumption, coal consumption, gas consumption, electricity consumption are not the Granger causality of economic growth. There is no the Granger causality relationship between oil consumption and economic growth. Finally, the author provides some proposals from the energy development strategy, energy consumption structure, the energy regulatory regime angles basing on the results of theoretical and empirical analysis, in order to offer some targeted countermeasure for sustainable development of energy consumption in the future, and enhance people's sense of energy conservation and responsibility to protect environment.