Shaanxi Province, Energy Consumption And Economic Growth In The Impact Study

In the 90's of 20th century, with the implementation of development policy in western China,the energy industry,in Shaanxi, developed rapidly and energy consumption increased significantly.Meanwhile, the GDP of Shaanxi showed an accelerating growth. In order to verify the relevance between energy consumption and economic growth,this paper uses qualitavity and quantitavity analyzing methods to investigate the relationship.Based on the index of developing trend in two decades, the relationship between energy consumption and GDP shows tendency of staggered changes. Combined with the practical situation of Shaanxi province, it can explain in two ways—the optimization of industrical structure and energy consumption structure. In the quantitavity analyzing view, different types of energy consumption can affect GDP in different ways. In the paper, the energy consumption is added into Cobb-Dauglas function as a signal influencing factor to be a brand new model named production function of three elements. The cointegration and Granger causality test between energy consumption and economic growth of nearly two decades reveals a causal relationship between GDP and energy consumption. From the Granger test results, it is showed a equilibrium relationship between GDP and coal consumption, as same as the relationship between oil consumption and GDP, while gas consumption and GDP has a long-time equilibrium relationship, too. Besides, analyzing results shows that, in short term, 1% increasing on coal consumption will bring 0.11% decreasing in GDP and 1% increasing in oil and gas consumption can promote GDP increasing 0.28% and 0.05% separately. Test result also shows that the equilibrium relationship between GDP and electricity consumption is not exist, because Shaanxi's electricity consumption structure is too compliticated and its characterization of secondary.Combined with the analyzing results and externalities of different energy consumption, some recommendations is rised on Shaanxi's energy consumption and structure optimization in future-reducing coal consumption, controlling oil consumption, improving the proportion of clean energy consumption such as gas and electricity, forming a cleaner energy consumption structure, and implementing the energic conservation which will ensure sustainable development of energy consumption in a reasonable institution and enviroment.