The Relation Research Between Primary Energy Consumption And Economic Growth

The growth of economic needs all kinds of resources，energy is an important factorof production which can promote economic development，so energy has a closerelationship with human civilization and the improvement of material life。The inputsand economic growth are interrelated and interact with each other in accordance withthe law of economics. On the one hand, the inputs can promote economic growth to acertain extent，on the other hand, the consumption of inputs will increase because ofeconomic development. At present, energy has become an important driving force forkeeping the stability of economic development; also the enhancement of economic levelhas good effects on technology innovation of developing and utilizing energy. Thus theconsumption of energy increased greatly, but at the same time, energy consumption hasbought serious environmental problems. There is very important realistic significance tograsp the relationship between energy consumption and economic developmentaccurately for optimizing energy consumption structure as well as developing lowcarbon economy and improving energy efficiency to reduce environmental pollution.This study used both theoretical method and empirical method. In theoreticalanalysis, the paper used the theories of macroeconomics, development economics,industry economics for statistical analysis about energy supply and demand; Inempirical research, the paper try to explore dynamic relation between the structure ofenergy consumption and economic growth based on China’s energy consumption andGDP data. The paper used the unit root test to judge whether the time series data isstable, and then Granger causality is tested between primary energy consumption andeconomic growth, also the paper tried to discuss the dynamic variation between oil,natural gas, power consumption and economy growth with vector autoregression model,And to explain influences on variables by using the impulse response analysis andvariance decomposition.Statistical analysis showed that China’s energy resources are abundant relatively,but the amount of per capita energy resource is low; Also，development of energy isdifficult and cost of energy utilization is high because of distribution; Energy efficiencyis low and resource constraint is prominent. What’s more, environmental problemscaused by coal consumption and the emergency abilities are poor, so energy marketsystem should be strengthened. Empirical studies showed that: electric power consumption Granger cause GDP, and GDP Granger cause coal consumption as well asGDP to oil consumption; the contribution of coal consumption to GDP change is farhigher than other energy; electric power consumption can promote economicdevelopment, but it has a lag time; gas and oil consumption have positive effect oneconomy; the phenomenon of inertia to economic growth is also existence; the effect ofself-reliance and accumulation is obvious. GDP change is mainly due to the impact ofchanges resulting from its own, and the rate is more than95%. Some policy suggestionsare put forward to promote sustainable development of energy industry and economy.