| Energy is the support and the power of the development of national economy. With the development of social economy, the demand for energy is growing. Due to the special natural endowments, energy production and consumption is given priority to coal in our country. But China has less per capita recoverable reserves and the outlook is not optimistic.The importance of economic development has been repeatedly confirmed, it can promote the development of our country’s economy but coal existing problems. Based on reading the relevant literature, coal energy alternative is divided into two parts. The main content of research is as follows.First of all, I say the reason of choose the topic. To review the literature on previous and put forward research direction.Second, I made a description of the relationship between energy and economic development, the proportion of different energy consumption in China, such as a series of coal, oil and other energy related indicators. I pointed out the important position of the coal energy.Finally, I using Translog Cost Functions and R language to calculate the elasticity of substitution. The alternative of coal energy is divided into two parts. Firstly is the production externalities alternative energy elements. The second is gas and energy coal energy internal instead. The studying about this article exist some data limitations. But through depth analysis, the main conclusions are obtained.In given conditions, technical level under certain conditions, by increasing the amount of capital and labor inputs, it can be appropriate to reduce the use of energy. But energy is essential for economic development, and the coal is non-renewable energy, reducing year by year, the internal trade-off is fundamental to solve the shortage of coal. Therefore, capital and labor based on alternative energy and oil, natural gas, is the coal energy elasticity of substitution. |