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The Short-Term Dynamic Relationship of China's Energy-Economy-Environment System

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Abstract:

Energy is the foundation of economy for China. The economic growth depends on energy, but recent years, the carbon dioxide from energy consumption hinders the GDP to grow. Environment starts to affect economic growth and it becomes a restriction to energy consumption. Energy, economy and environment have formed a new system which is called 3E system, so its practical to study the dynamical relationships among the 3E system. This paper selects annual data from 1970 to 2009 to establish a VEC model and takes the impulse response function and variance analysis to analyze the short-term dynamical relationship of Chinas 3E system, finding that there is at least one co-integration relationship among 3E system in China. Finally, this paper discusses how the energy, economy, and environment affect each other in short term from a quantitative perspective and intends to provide some advices to draft applicable energy policy for China.

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Periodical:

Applied Mechanics and Materials (Volumes 448-453)

Pages:

4325-4328

DOI:

https://doi.org/10.4028/www.scientific.net/AMM.448-453.4325

Citation:

Cite this paper

Online since:

October 2013

Authors:

Lei Zhang, Sen Guo*, Kun Yang, Si Qi He, Hui Ru Zhao

Keywords:

3E System, Impulse Response, Variance Decomposition, VEC

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© 2014 Trans Tech Publications Ltd. All Rights Reserved

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