An Empirical Study On Relation Between Energy Consumption And Economic Growth

Our country gets a rapid development since it follows the Policy of Reform and Opening. And in the meantime, the regional economic development rises to a new step. However, with the sustained and rapid development of economy of our country, the Energy Consumption continues to increase rapidly. As a major power of Energy Consumption, our country is facing the situation of a large population and less per capital energy capacity, only a reasonable and effective energy utilization can improve the quality of economic growth effectively, and promote the sustainable development of social economy in our country. The empirical study of the relationship between Energy Consumption and Economic Growth can make us correctly recognize and deal with the relationship between Energy Consumption and Economic Development, can be better benefit for our country’s Energy Policy and provide important reference for the establishment of sustainable development strategy.This paper summarizes in the literature research on Energy Consumption and Economic Growth, both at home and abroad. Analyze the dynamic relationship between Energy Consumption and Economic Growth in China on the basis of using the Econometric Methods. This paper is based on our energy economy data from 1990 to 2013,and with the help of Econometrics Knowledge and Panel Data model, researching on the dynamic relationship Between Energy and Economics. First of all, according to the present situation of Energy Consumption and Economic Growth in China, this paper tests dynamic relationship between the two factors using the time series data, reveals the inherent relationship between Energy Consumption and Economic Growth. And then analyzes the regional differences in energy consumption influence on Economic Growth.The result shows that our country’s energy consumption and the economy shows a trend of rapid growth since 1990. The current situation of both Energy Consumption and Economic Growth at the same time, the Elasticity of Energy Consumption and Energy Consumption Intensity value declines year by year, China’s energy efficiency increase gradually. Meanwhile, it exist one-way causation from Energy Consumption to the Gross Domestic Product. In addition, Energy Consumption plays an obvious role in promoting economic growth among east, middle and west region of China. Eastern Energy Consumption on the contribution rate of Economic Growth shows to be slightly higher than the Midwest.