Research Of Economic Growth On Energy Constrain

The role of economic growth has become a focus of debate in the literature. For the traditional neoclassical growth theory, the energy is an intermediate variable produced by capital, labor, land and other fundamental factors .so it is non-major for the production. However, from 70S of the last century, the facts in the world economic showed that energy is an essential element for economical development. This article will introduce the energy variable into the production function to establish an energy constrained economic growth model. For introducing the international trade of energy into the theoretical framework, this paper,after the closed economical anlysis,expand the model to an open economy. in the cousre of analysis, the paper initially introduce an concept called"regeneration rate of import".combining the"energy consumption rate"and the"energy regeneration rate of import"the paper analyzed the difference of the effects of energy constrain on the economic growth between closed economy and open economy. conclusions are drawed as follow:(1) The Promotional effect of technological progress and population growth on economic growth in the open economy is less than closed economy.(2) In open economy, the energy effects on economic growth depends on energy imports, energy consumption rate and regeneration rate. When the energy consumption rate is larger than energy imports, energy regeneration rates have hindered economic growth, when energy consumption is less than the regeneration rate of energy imports, the energy constraint on economic growth can be resolved.(3) Energy imports on economic growth has a positive role and the effects is negative correlation to the relative price of energy commodities. If the population growth rate is exogenously given, the greater the investment for energy commodities, the lower growth rate of per capita output.(4) To maintain economic growth, there is a maximum investment limit in energy importing.Based on the theoretical analysis, Using Cointegration Analysis cointegration and the VEC model,this paper analyzed the empirical relationship between the energy consumption and economic growth.