An Empirical Study On The Relationship Between Energy Consumption And Output Of Major Industrial Sectors In Guangdong Province

Energy is the material foundation of Industrial Development, there would be no industry now without considering energy as a support. Along with the vigorous development of the industrial economy, the consumption of energy will be inevitably increased, which leads difficult issues including energy shortages and high energy consumption,etc. How to maintain the balance between energy consumption and industrial production has been a hot topic during the process of industrialization.However, few literature related to studying the relationship between energy consumption and industrial production among academics, who did research more from the perspective of coordinative development of energy consumption and economic growth.Firstly, this thesis introduces the significance of the research on Guangdong Province’s energy consumption of industrial sector and gives a general review of research on the relationship between energy consumption and production of industrial sector at home and abroad. Based on the statistics from 2000 to 2014, the paper describes the status of energy consumption of industrial sector in Guangdong, and researches systematically on the long-term equilibrium relation between energy consumption and production of 11 main industrial sectors and the causal relationship between them, by using panel data model and error correction model. The result shows: some long-term equilibrium relationships exist between energy consumption and production of 11 main industrial sectors in Guangdong, and the diverge degree of the energy consumption across industries with average total energy consumption is larger; there exists two-way Granger causality between the energy consumption and production, which means energy consumption is a Granger cause of the production and the production is also the Granger cause of energy consumption.The enlightenment throws on policy formulation is that the sustainable development of Guangdong Industry cannot be brought just by reducing merely the total energy consumption, and that only by adjusting energy structure and encouraging energy efficiency can we improve evidently the tension which Guangdong’s industry is facing at present without loss in the total production of industrial sectors.