China's Sustainable Economic Development Of The Energy Factor Analysis

Energy is an essential part of productivity, which is closely related to the sustainable economic development. As we often say, without energy, there would be neither production nor people's livelihood, because sustainable development of our economy relies heavily on the exhaustible energy resources. With no proper control, energy resources would be used up sooner or later, because energy resources are exhaustible. Economists today have realized the importance of this problem and paid much greater attention to the energy exploitation and utilization.In 1977, the famous economist Hartwick studied and worked out the famous the Hartwick Rule for several resources and raised unanswerable questions about the existence of a maximum path (in particular the path for output) for the different values of the elasticity of substitution between the capital and the resources in a constant elasticity of substitution (CES) production function. His study results have reinforced a basic theory of neoclassical resource economics:the productive capital can substitute for the raw material resources extracted from a non-renewable resource in such a way that the resource depletion dose not harm the future generations. Consequently, substitutability between natural and reproducible capital may, in spite of the exhaustibility of natural resources, allow for equitable consumption for all the generations, and Hartwick seemed to have found the investment policy that would bring about optimal development. Nowadays, Hartwick Rule is a well-known theory in energy economics field after extended research. However, so far it hasn't yet been fully introduced nor depicted to our research.In this paper, I've just introduced some theories of Hartwick Rule and analyze the realistic situation to the myth of China's sustainable development. And, finally, what I can deduce from his rule is just to show the seriousness of the energy resource problem to our future development by quoting simple statistics while making some feasible suggestions.