The Relationship Between Energy Consumption And Economic Growth In China

Energy consumption is the source of economic growth,and economic growth has the necessary internal demand for energy consumption as well.At the same time,economic growth creates the conditions for energy development.Energy consumption and economic growth have close relations.At the start of the 13 th Five-Year Plan,it is important and necessary to study the relationship between energy consumption and economic growth in China.This paper uses two sequential data model and panel data model to make empirical analysis based on the statistics and econometrics knowledge,using time series analysis method.According to analyze two aspects of energy consumption structure and regional difference,the relationship between energy consumption and economic growth can be found.From the empirical analysis of energy consumption structure,GDP and total energy consumption,GDP and total oil consumption,GDP and total gas consumption exist co-integration relationship.Therefore this essay establishes the co-integration model and error correction model on them.However,GDP and total coal consumption,GDP and total hydropower,nuclear power,wind power consumption exist no co-integration relationship.Granger causality results show that there are unidirectional Granger causalities from GDP to total energy consumption,total oil consumption,total gas consumption and total hydropower,nuclear power,wind power consumption.From the empirical analysis of the regional differences,total energy consumption and GDP among regions exist co-integration relationship.Therefore this essay establishes variable coefficient individual fixed effects regression model on them.There is bi-directional causality between total energy consumption and GDP in Tianjin and Liaoning of the east area.In the east area,such as Beijing,Hebei,Jiangsu,Zhejiang,Fujian,Guangdong,Guangxi,Hainan;in the central area,Jiangxi,Henan;as well as in the western area,Yunnan exist unidirectional Granger causalities from total energy consumption to GDP.In the central area,Jilin,Anhui;in the western area,Chongqing,Sichuan,Shanxi,Gansu,Xinjiang,exist unidirectional Granger causalities from GDP to total energy consumption.