An Empirical Research On Relationship Between Energy Consumption And Economic Growth

This paper from the level of energy consumption and the status of its economic development, found that since 2010, China’s nominal GDP surpassed Japan to become the world’s second largest after the United States economy. In 2013, total energy consumption over the United States as the world’s first energy consumer. With the substantial increase in the rapid economic growth and energy use, the insufficient fossil energy supply,energy-inefficient, the deviation of the energy structure, ecological restoration system has been broken ring and other issues become the bottleneck of economic development. How to correctly handle the relationship between energy consumption and economic growth,rational use of resources, promote the growth of green GDP has become the focus of public attention. This paper mainly includes the following five aspects of the work:First, from theoretical and empirical point of view, both classical literature and the latest research results of the past five years to sort out and summarize. By contrast with the reflection, analysis the relationship of research status and direction which between energy consumption and economic growth.Second, reorganize the theory of relationship between energy consumption and economic development, mainly expounds the new classical economic theory of consideration of energy, energy economy theory, low carbon city theory and energy saving theory. Make theory foreshadowing for later panel model building and the analysis of results.Third, make the analysis of the present situation of the energy consumption and economy development level of China. From the point of energy consumption, the overall energy consumption in eastern provinces among the top. From the industrial structure,increase the value of GDP in 2013. China’s tertiary industry completed beyond secondary industry, but sub-regional perspective, only the eastern part of the industrial structure to achieve the "three, two, one" industrial transformation. The economic growth in the central and western regions are still driven mainly by industrial development. There is a positive correlation between energy consumption and economic growth.Fourth, establish three regional energy consumption and economic growth panel model. The generalized three elements of production function as a basis for the model which was established based on gross domestic product as the dependent variable, fixed asset investment, number of employees, total energy consumption as the explanatory variables. The main results are the following three conclusions: First of all, after pretreatment of variable sequences. the model variables are under the condition of the same order of integration found original variables have co-integration relationship. Thus, there isa long-term stable equilibrium relationship between energy consumption and economic growth. Secondly, the region’s GDP and total energy consumption sequence of the central,eastern and western conducted Granger causality test, then found that the relationship between the three regions of the two sequences differ greatly. Specifically, the eastern part of the sequence is the two-way causal relationship, there is no Granger causality in the central region sequence, the western region has the energy to GDP one-way causal relationship.Finally, based on the variable processing and model checking, establish fixed effects model with variable coefficients, which uses generalized least squares method to get to the level of the value of the variable in logarithmic form. Make each sample data of central, eastern and western provinces regression estimation respectively. The results of regression statistics ensure the validity of the model equations.Fifth, based on the theory foregoing summary analysis and quantification, get inspiration from the adjustment of industrial structure, regional characteristics, energy reform. Then, according to this article, made a outlook related this topic research in the future.