Empirical Study on the Economic Effect of Energy Conservation and Emission Reduction in Different Industrial Stages

Abstract:

This paper has investigated the inner relationship between economic growth and energy consumption. Firstly, the authors have analyzed industrial level in 31 provinces of China between 1978 and 2011, and then classified them into different groups according to industrialization stages during different periods. Next, empirical study has tested the causality between economic growth and electricity consumption by the means of Panel Vector Autoregression (PVAR). Then we conclude that the causality between electricity consumption and economic growth is bidirectional in Pre-industrial and late industrialization stage, during which reducing emissions is likely to have negative impact on GDP. And thus we need to pay more attention to improving energy efficiency and developing new energy. At the beginning and middle stage of industrialization, there exists unidirectional relation between economic growth and electricity consumption, which implies that a policy to reduce energy consumption makes little difference to GDP.

• Periodical: Advanced Materials Research (Volumes 962-965)
• Pages: 1541-1546
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.962-965.1541
• Online since: June 2014
• Authors: Ling Liu*, Xiao Qing Ma, Zhi Juan Mao
• Keywords: Economic Growth, Electricity Consumption, Energy Saving, Granger Causality Test, Industrialization Level

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