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Energy consumption and economic growth relationship based on inter-provincial panel data analysis

Author: HanChunChun
Tutor: ZhuZuo
School: Central South University
Course: Quantitative Economics
Keywords: energy consumption economic growth Granger causality energy-saving approach
CLC: F206;F124
Type: Master's thesis
Year: 2011
Downloads: 181
Quote: 0
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Abstract


From the angle of building energy-saving society and regional difference, this paper empirical studies the causality between energy consumption and economic growth for different areas of China.Firstly, this paper selects 29 provinces and autonomous regions in China’s energy consumption and gross domestic product per capita panel data,which is based from 1990 to 2008.Setting the per capita GDP is x-coordinate and per capita energy consumption is y-coordinate,29 provinces and autonomous regions are divided into four different characteristics by two-dimensional combination matrix, namely high economic growth areas of high energy consumption,high economic growth low energy consumption, low economic growth high energy consumption and low economic growth low energy consumption.Secondly, the paper applies panel data unit root test, panel cointegration test and panel Granger causality test based on the error correction model to research the relationship between energy consumption and the economic growth of the four different regional respectively.Research results show that different regionas have different relationship between energy consumption and the economic growth:in high economic growth and high energy consumption areas the relationship between energy consumption and economic growth does not exist;in high economic growth and low energy consumption areas the relationship between energy consumption and economic growth exists two-way of short-term causality with economic growth and the energy consumption and one-way causality of long-term with economic growth to the energy consumption;in low economic growth and low energy consumption areas the relationship between energy consumption and economic growth only exist short single direction of causality with energy consumption to economic growth.Finally, according to this study, the paper provides policy Suggestions on the conclusions of regional strategic planning and the energy consumption of energy saving and emission reduction realization ways of growth mode.

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