The Analysis of Energy Consumption and Economic Growth in China
Su Bo He, Ming Ming Chang
Abstract
Su Bo He, Ming Ming Chang
Abstract
This paper analyses the relationship between China's economic growth and energy consumption of the period 1978-2009 by the Granger causality test. The results of the study show that: economic growth and energy consumption have cointegration relationship, energy consumption promote economic growth, but economic growth is not Granger caused the consumption of energy. In order to promote China's economic development, the reasonable energy consumption quantity must be found, It's a new topic.
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This paper analyses the relationship between China's economic growth and energy consumption of the period 1978-2009 by the Granger causality test. The results of the study show that: economic growth and energy consumption have cointegration relationship, energy consumption promote economic growth, but economic growth is not Granger caused the consumption of energy. In order to promote China's economic development, the reasonable energy consumption quantity must be found, It's a new topic.
Key concepts: Granger causality, Cointegration, Energy consumption, China, Economics, Consumption (sociology), Order (exchange), Error correction model