China Renewable Energy Consumption And Economic Growth Empirical Study

Energy is one of the fundmental material for the development of economy and society. A sustained,rapid and stable economic development in China has stimulated rapid increase in energy. Traditional fossil fuels made a significant contribution to the economic development. However, the limited fossil energy reserves,which could give the economic development under certain constraints,such a scarcity of resolve to show its overall upward trend in prices.The paper firstly reviews the related research on energy consumption and economic growth.Then it makes theoretical analysis by using the relative theory from three aspects including the resources constraints,energy demand and technological innovation.Secondly we analyzes the effects of renewable energy and other factors on the economic growth of China during the 1980-2008 period through cointegration analysis.In our model,labor,capital stock,fossil energy consumption and renewable energy consumption are the four inputs and real GDP is the single output.Finally, according to the theoretical and empirical analysis,It shows that China's economic growth is restricted by total amount of fossil energy and renewable energy is reduce the economic growth rate.Increasing the use of renewable energy may not improves an economy's economic growth. Conversely, increasing the input of traditional energy may contribute to it. Compared to developed countries,China have lower technical level and a higher share of renewable energy, such as geothermal,solar,tide,and wind fuels.