Abstract: Abstract： The panel cointegration model on energy demand model is applied and the panel data for energy consumption and economic growth, energy efficiency, as well as the price for six industries from 1989 to 2005 are defined. It is found that there is a panel cointegration relationship among the four panel variables which characterizes the energy consumption of the six industries in the long run.The conclusions and their implications can be taken as a suggestion for long-run energy strategy in China; in particular, the summing-up also explains the policy on 10 measures from the State Council of China; the purposes of these measures are expanding domestic demand and promoting economic growth.

Key words: energy demand, energy efficiency, energy price, industrial growth, panel cointegration