Study On Dynamical Relationship Of China's Energy Development And Economic Growth

Energy and economic growth are interdependent mutually; energy is the source of economic growth. Economic growth can create conditions for energy development. The level of energy production and consumption is an important indicator of measuring a country's economic development and the level of people's living standard. This paper elaborated China's energy development status and problems, China's energy demand factors, China's energy demand, the relationship of China's 3E system based on theories and methods of energy home and abroad, the relationship between energy and economic growth. This paper analyzed factors of energy demand by Gray theory, predicted energy demand by ARIMA model, analyzed China's 3E system by impulse response and variance decomposition on the basis of VAR model, analyzed the relationship of China's economic growth and energy by Cointegration test and Granger causality test. Lastly, this paper gave suggestions on China's energy policy for sustainable development.