Influences Of Energy Price Fluctuations On Chinese Economy And Its Regional Difference

As China’s upstream industry, energy price fluctuations have a profound impacton the Chinese economy. Therefore, scientific exploration to the impact of energyprice fluctuations on the regional economy has some positive meanings to the steadydevelopment of China’s economy and related policies selection.In this paper, we make a theoretical analysis of energy price fluctuations on theeconomy first. Then we have a summary and review of energy price fluctuations onthe economy in home and abroad. At last, we further clarify that the impact of energyprice fluctuations on the economy should be studied both from total effect andstructural effect. From total effect, we study the impact of energy price fluctuations onGDP and CPI. From structural effect, we study the impact of energy price fluctuationson consumption, investment and exports. In the framework of this study, Panel DataModel is used to study the problem.This paper has two main innovations. One is the angle innovation. Making aanalysis for previous scholars, it clearly can be seen that most of the scholars doresearch on the impact of energy price fluctuations on the economy just from totaleffect. Based on the research of previous scholars, this paper do research both fromtotal effect and structural effect, which enrich the study o f energy price fluctuations oneconomy. The other is content innovation. Putting the energy price fluctuations oneconomy into region difference study is closer to the reality, which is more differentand innovative than the previous scholars did.The conclusions: Through theoretical analysis, the impact of energy pricefluctuations on regional GDP is negative, the impact on the general price level ispositive, the impact on consumption, investment and export is also negative. Theempirical results were not entirely consistent with the theoretical analysis. Theempirical results show that the impact of energy price fluctuations on regional GDP,consumption, investment and exports is positive, which is opposite with thetheoretical analysis. While the impact of energy price fluctuations on the price level ispositive, which is the same with the theoretial analysis. this result is explainedThrough the study of literature and combined with China’s actual conditions. Inaddition, the empirical results also show that the impact of energy price fluctuationson the three regions is different. From total effect, the impact of energy pricefluctuations on GDP of east is the largest, and the middle is followed, the west is the lowest. The impact of energy price fluctuations on CPI of middle is the largest, andthe east is followed, the west is the lowest. It has a great relationship with the level ofeconomic development of regions and the Chinese directional policy support.Fromstructural effect, the impact of energy price fluctuations on consumption of east is thelargest, and the middle is followed, the west is the lowest. The impact of energy pricefluctuations on investment of middle is the largest, and the west is followed, the eastis the lowest. The impact of energy price fluctuations on export of east is the largest,and the middle is followed, the west is the lowest.Finally, some policies was proposed. Based on the empirical results and the basisof a balanced and stable development of the national economy, according to theconclusions, different regions were given different economic policies, and the relevantgovernment departments were also given a few relevant policies andrecommendations.