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Study on Economic Growth of Jiangsu Province with Restraint on Energy

Author: ChenZuo
Tutor: SangNaiQuan
School: Nanjing University of Finance and Economics
Course: Western Economics
Keywords: Energy Economic Growth Endogenous growth
CLC: F206;F224
Type: Master's thesis
Year: 2011
Downloads: 68
Quote: 0
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Abstract


By surveying the development process of industrial nations in the world, we find that the supplement supply of energy ensures social stability and modernization. As a result, shortage of energy supply could postpone economic growth speed and result in conflict between different nations.As a large energy consumption province, Jiangsu makes up 8% of the whole nation’s energy consumption. It means that, energy supply and demand is a double sides coin: in one hand, supplement supply of energy promotes the economic development of Jiangsu; in the other, shortage of energy supply would prevent the sustainable economic growth. For the moment, Jiangsu is at the crawling stage of industrialization and modernization. So the structure of energy supply will affect the height, speed and sustainability of Jiangsu development.This paper will survey how energy consumption affects economic growth of Jiangsu province. Then, we will talk about the relationship between energy restraint, economic structure and efficiency in Jiangsu province in order to propose some constructive suggestions.To solve the problem referred previously, this paper will make use of econometrics methods, such as Johansen cointegration test, Granger causality tests, impulse response function and variance decomposition to test the effects of energy on economic growth. The result shows that: There is a long-run equilibrium relationship between energy consumption and economic growth; industry makes great contribution to the economic growth of Jiangsu province and consumes large proportion of energy supply. To solve such problems, this paper gives some proposes including setting up a diverse system of energy supply, improving energy structure and enhancing the adjustment of economic structure.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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