Research Of Relationship On GDP Deflator And Primary Energy In China

“The Twelfth Five-year Plan” period is the crucial period to build a well-offsociety in China，deepen reform and opening up and accelerate the transformation ofeconomic development way.So the demand for energy and the energy structure is putforward higher request because of the economy development during this period.Energy structure in our country are mainly composed of primary energy, coal outshineothers in the primary energy consumption to occupy the absolutely position, which isdifferent with the world’s energy consumption structure. Oil consumption increasingrapidly, but the supply gap is also larger at the same time, China’s crude oil foreigndependency has been as high as56.5%in2010, which made our country energysecurity situation become increasingly severe; Natural gas, water and electricity as arelatively clean and efficient energy, but their development and utilization in ourcountry is relatively low.Domestic primary energy consumption demand will inevitably produce certainassociations with social total product demand, so it will have an effect on on pricelevel in some extent. Therefore, it is significant to understand the irrationality ofChina’s energy consumption and to achieve the virtuous circle between primaryenergy consumption and price level from the unique view of energy consumption toanalyze the prices and inflation change.So, based on the present situation of primaryenergy in China and the two aspects of primary energy consumption structure and theprimary energy price level, at the same time we choose GDP deflator which measuresa nation’s price level fluctuation as our research objects and research view. First of all,we make the ground through the qualitative analysis stage, and then through thequantitative analysis of data provide the corresponding reference for the coordinateddevelopment of China’s primary energy consumption and the price level from the twoaspects of the primary energy consumption structure and the primary energy Thispaper makes qualitative introduce for the primary energy in our country from theaspects of production, consumption, price level etc. Then we make introducedetailedly for all kinds of primary energy consumption, energy prices index, the vector autoregressive model which we apply and make corresponding treatment forthe GDP data.Then we establish the corresponding vector autoregressive model fromthe relationship between GDP deflator and primary energy consumption and therelationship between GDP deflator and the primary energy price level, at the sametime we obtain corresponding cointegration equation and the dynamic analysis ofvector autoregressive model.Through quantitative research, the clear data shows therelationship between the GDP deflator and primary energy. Finally, we raiseconstructive suggestion for China’s primary energy optimization from two aspects ofprimary energy consumption and the primary energy price level.