An Empirical Study of the Relationship between China's Energy Consumption and Economic Growth

By using the E-G two steps methods,this paper conducts the cointegration analysis and Granger causality estimation to study the relationship between China's energy consumption and economic growth based on the data from 1978 to 2010.Results show that there exists a long term equilibrium relationship between energy consumption and economic growth,and energy consumption promotes economic growth to some extent but the promoting effect is insignificant;and there exists a one-way causality from energy consumption to economic growth,which means energy consumption results in economic growth.Relevant policy recommendations are proposed.