Empirical Study on the Relationship between the Energy Consumption and Economy Growth in China
Tao Chen
Abstract
Tao Chen
Abstract
This paper makes an empirical research on the relationship between the GDP growth and the consumption of the general energy,coal energy,electricity energy and the oil energy,with the gecometrical methods of cointegration testg,ranger causality test and the error correction model dealing with the relevant data from the year of 1978 to 2008.And it is showed that the causality relationship between the GDP growth and consumption of the general energy,coal energy,electricity energy and the oil energy is inconsistent:The consumption of the general energy and coal energy has a long single relationship with the GDP growth while the GDP growth has no causality relationship with the consumption of the general energy and coal energy;the consumption of electricity and oil consumption has a double long relationship with the GDP growth.And at last,some suggestions for the development of the energy industry are proposed.
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This paper makes an empirical research on the relationship between the GDP growth and the consumption of the general energy,coal energy,electricity energy and the oil energy,with the gecometrical methods of cointegration testg,ranger causality test and the error correction model dealing with the relevant data from the year of 1978 to 2008.And it is showed that the causality relationship between the GDP growth and consumption of the general energy,coal energy,electricity energy and the oil energy is inconsistent:The consumption of the general energy and coal energy has a long single relationship with the GDP growth while the GDP growth has no causality relationship with the consumption of the general energy and coal energy;the consumption of electricity and oil consumption has a double long relationship with the GDP growth.And at last,some suggestions for the development of the energy industry are proposed.
Key concepts: Cointegration, Energy consumption, Economics, Coal, Consumption (sociology), Electricity, Causality (physics), Error correction model