Study On The Interactive Relationship Between Energy Consumption And Economic Growth

As the material basis necessary for global economic development and social progress,energy plays a vital role in promoting economic development of all countries and improving people’s material living standards.With the intensification of greenhouse effect,climate warming and the frequent occurrence of natural disasters,the consciousness of human being to protect the natural ecological environment is becoming stronger and stronger.As the largest developing country in the world,China has become the world’s leading energy consumer with a strong momentum of economic development and rapid growth in energy consumption.The rapid development of economy has produced excessive demand for energy,and the problem of energy shortage has become the focus of global concern.At the same time,China’s ecological environment is also threatened with the use of large amounts of energy.Energy problem has become one of the hot issues in China’s economic development.The report of the 19 th National Congress of the Communist Party of China pointed out that we should continue to adhere to the basic state policy of energy conservation and environmental protection,and continue to adhere to the road of green and low-carbon sustainable development.In the 14 th Five-Year Plan major engineering projects,energy security is also put forward as a key key to lead the future development.Under the current background,the study of the interaction between China’s energy consumption and economic growth provides a valuable reference for the rational formulation of China’s energy policy.This paper studies the interaction between energy consumption and economic growth.First of all,this paper sorts out the relevant literature on energy consumption and economic growth at home and abroad,and summarizes the research status at home and abroad.Secondly,the paper makes a descriptive analysis of the development of China’s energy consumption and economic growth.Thirdly,this paper analyzes the theoretical mechanism between energy consumption and economic growth,and lists four hypotheses,namely,neutral hypothesis,conservation hypothesis,energy-dominated growth hypothesis and feedback hypothesis.Finally,this paper uses the time series samples from1978 to 2019 to study the long-term and short-term equilibrium relationship between energy consumption and economic growth by establishing a multivariate framework ARDL-ECM model that includes economy,energy,capital and labor.The results show that there is a long-term co-integration relationship between energy consumption and economic growth,which is consistent with the feedback hypothesis.Both energy consumption and economic growth have positive effects on each other in the short and long run.At the end of the paper,the author draws a conclusion and gives two suggestions on China’s energy problems.On the one hand,China should introduce advanced technology and carry out independent innovation to improve energy efficiency.China should,on the other hand,increasing the use of new energy,the proportion of renewable energy and clean energy,instead of the traditional fossil energy,optimize the structure of energy consumption,in does not reduce the energy consumption at the same time,with less pollution of the environment to meet the requirements of high speed economic development,open up a path of energy sustainable development with Chinese characteristics.