Research The Relation Of Energy Production And Consumption And Economic Growth In China

China’s energy structure makes a decision to take the construction of aresource-saving, environment-friendly society on a prominent strategy position of thedevelopment of industrialization and modernization; At present, China is a big countryof energy exploitation and consumption power and has many irrational factors, there aresharp contradiction between energy supply and demand, unreasonable structure,increasingly outstanding energy safety problem, low efficiency of energy use, the fossilenergy large amounts of exploitation and consumption and so on. The issues ofenvironment and energy taken from these factors also affect China’s economicdevelopment. In the light of problem between the energy exploitation and consumptionand the economic development, we first have to clarify that what level of china’s energyexploitation and consumption situation exactly at, regional differences, and which mainenergy factors affect the growth. This paper will make a mainly research around theseissues.This paper reviews the literatures related to energy exploitation andconsumption, and summarizes on the current situation of the research, and introducesthe theory of the energy production and consumption and economic growth, andqualitatively analyses the appraised indicators of the energy production andconsumption and economic growth, and analyses the composition of China’s energyproduction and consumption and economic growth, and quantitatively analyses theinfluence relationship of evaluation index between energy production and consumptionand economic growth, and use ADF test to make an Unit root tests on the stationarity ofthe energy and economic growth index series, and employ Granger test to prove thatthere exists two-way Granger causality between energy consumption growth andeconomic growth, and there exists one-way Granger causality between energyexploitation and energy consumption，and there is no causal relationship betweenenergy extraction and economic growth.On this basis, we use econometric model analysis to empirically analyses the effectbetween China’s energy production and consumption with economic growth，and toprove the result of Granger test by the construction of economic growth of multipleregression model, and by making the growth rate of energy production and consumption,technology progress, capital as input variables, and by making the growth rate of GDP as variables of economic growth, and by being based on China’s1998-2011inter-provincial panel data. Lastly, according to the empirical results, this paper providean objective basis for the decision-making departments to promote economic growth, inolder to make the rational exploitation of energy resources, and to improve energyefficiency measures, and to reduce energy consumption, and so on.