Co-Integration Analysis of Energy Consumption and Urbanization - An Empirical Study Based on Shandong Province

Abstract:

This paper used methods of co-integration analysis and Granger causality estimation to test the relationship between energy consumption and urbanization in Shandong province from 1995 to 2012. Econometric software—Eviews 6.0 was used during the calculation process. All the empirical study experienced several steps including unit root test, co-integration test, error correction model as well as Granger causality estimation. Despite the short-run fluctuation, the empirical study showed that there was a stable equilibrium relationship between energy consumption and urbanization in Shandong province in the long-run. Meanwhile there was a one-way causality relationship from energy consumption to urbanization in Shandong province. Under the background of energy shortage, several energy policies should be carried out to maintain the sustainable energy consumption and urbanization in Shandong province.

• Periodical: Advanced Materials Research (Volumes 1073-1076)
• Pages: 1337-1340
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.1073-1076.1337
• Online since: December 2014
• Authors: Yan Ren
• Keywords: Co-Integration Analysis, Energy Consumption, Error Correction Model, Urbanization

References

[1] Kraft.J., Kraft.A., On the Relationship Between Energy and GNP[J]. Journal of Energy and Development. 1978, (3): 401—403.

[2] Stern D.I., Energy Use and Economic Growth in the USA: a Multivariate Approach[J]. Energy Economics. 1993, (15): 137—150.

[3] John, Asafu-Adjaye, The Relationship Between Energy Consumption, Energy Prices and Economic Growth: Time Series Evidence from Asian Developing Countries[J]. Energy Economics. 2000, (22): 615—625.

DOI: 10.1016/s0140-9883(00)00050-5

[4] Geng Haiqing. The Mechanism of Interaction between Energy Infrastructure and Urban Development [D]. Beijing: Geographic Sciences and Natural Resources Institute of Chinese Academy of Sciences. 2004: 111-114.

[5] Zhang Huan, Cheng Jinhua. The Dynamic Impact of Chinese Urbanization on Energy Demand [J]. Journal of Management. 2011, (7): 1060-1066.

[6] Yang Suchang, Han Jun. Urbanization and Energy Consumption: the Measurement of Dynamic Relationship and Contribution Degree—Based on the Empirical Data of Gansu Province [J]. Northwest Population. 2012, (4): 120-125.