The relationship between energy consumption andeconomic growth based on the eight economic regions of China

Xiao Tao, Zhang Zongyi, Guo Xiaoming

Science Research Management ›› 2012 ›› Issue (4) : 139-146.

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PDF(887 KB)
Science Research Management ›› 2012 ›› Issue (4) : 139-146.

The relationship between energy consumption andeconomic growth based on the eight economic regions of China

  • Xiao Tao, Zhang Zongyi, Guo Xiaoming
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Abstract

Based on the relevant data of the eight economic regions in China during the period of 1986-2008, the panel econometric analysis methods is used, to examine the relationship between Energy Consumption(EC) and economic growth(GDP).The results reveal that in the log term, there exists a bilateral Granger causality running both from GDP to EC and from EC to GDP in the northeast region, north-coastal region, south-coastal region, and middle Yellow River region, and a unilateral Granger causality from GDP to EC in the middle Yangtze River region and northwest region; and a unilateral Granger causality running from EC to GDP in the southwest region.The empirical findings also indicate that in the short run, a unilateral Granger causality exists from GDP to EC in north-coastal region, middle Yangtze River region, and northwest region, it exists from EC to GDP in the south-coastal region and middle Yellow River region, however, the Granger causality does not exist in northeast region and southwest region. Furthermore, the research suggests a hard-to-define relationship between EC and GDP from the pespectives of both the long-term and short-run in the east-coastal region. Finally,based on the empirical results, some related policy recommendations,which have the reference to the formulation of regional energy and industrial policy, are put forward.

Key words

eight economic regions / EC / economic growth

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Xiao Tao, Zhang Zongyi, Guo Xiaoming. The relationship between energy consumption andeconomic growth based on the eight economic regions of China[J]. Science Research Management. 2012(4): 139-146

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