Research on the Dynamic Relationship between Energy Consumption Structure and Economic Growth in China

Abstract:

With the increasingly development of economy in China, economic growth and efficient use of energy is a hot topic in recent years, also China is under pressure of carbon emissions reductions during the process of economic development. This paper try to do a research to find weather the structure of energy consumption and economic growth exist long-term dynamic equilibrium relationship. Based on VAR model, though Granger causality test, impulse response and variance decomposition, combined with China's development of low-carbon economy, in the years between1978 to 2012 , four results has been showed: First, China's economic growth and energy consumption exist a stable long-run equilibrium relationship. Second, at the 1% level, there is a two-way Granger causality coal consumption and economic growth. Third, in lag 4, the energy consumption is produced positive effects on economic growth and the impact of coal consumption has maximum affect. Forth, the development and utilization of renewable energy is an effective way to solve China's economic development and energy constraints contradictory.

• Periodical: Advanced Materials Research (Volumes 1010-1012)
• Pages: 1976-1979
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1010-1012.1976
• Online since: August 2014
• Authors: Li Jiang
• Keywords: Economic Growth, Energy Consumption, VAR Model

References

[1] Eden SH, Yu Been-kwei, Wang H. The Relationship between Energy and GNP: Further Results [J] Energy Economics, 1984, 6 (3): 186-190.

[2] CHU HP, CHANG T. Nuclear energy consumption, oil consumption and economic growth in G-6 countries: Bootstrap panel causality test [J] Energy Policy, 2012 (48): 762-769.

DOI: 10.1016/j.enpol.2012.06.013

[3] NAZLIOGLU S, LEBEF, KAYHAN S. Nuclear energy consumption and economic growth in OECD countries: Cross-sectionally dependent heterogeneous panel causality analysis [J] Energy Policy, 2011 (39): 6615-6621.

DOI: 10.1016/j.enpol.2011.08.007

[4] Zhao Jinwen, Fan jitao. Empirical Research on the Inherent Relationship between Economy Growth and Energy Consumption in China [J] Economic research, 2007. 8: 31-42.

[5] Zhang Lin, He Liancheng, etc. Dynamic relationship between energy consumption and economic growth in China [J] Research and development, 2009, 142 (3): 86-90.

[6] Huo Zongjie, Zhou Caiyun. Our Country's Economic Growth, Energy Structure and Empirical analysis of the Relationship between Energy Consumption [J] Contemporary economic management, 2010, 32 (5): 10-14.