Relationships Between Energy Consumption And Economic Growth In Inner Mongolia

Energy is the material basis for economic sustainable development and plays an important role in economic life. It is energy issue that always has been a hot and difficult topic in the economic development. In the regional economic development of China, Inner Mongolia has achieved high-speed economic growth accompanying mass energy consumption. It will be a growing conflict between economic growth and energy consumption, which is harmful to the long-term sustainable economic growth in Inner Mongolia.This paper aims at in-depth analysis on relationships between energy consumption and economic growth in Inner Mongolia to reveal the internal relationships between them, so as to provide some practical recommendations for Inner Mongolia to overcome the energy constraint and achieve economic sustainable growth. First of all, this paper studies the characteristics of energy consumption in Inner Mongolia from the amount of energy, the product structure of energy consumption, the sector structure of energy consumption and energy efficiency. Furthermore, this paper tests the relationship between energy consumption and economic growth in Inner Mongolia from 1985 to 2008 by using the methods such as the cointegration test, error correction model, Granger causality test. Again, under an analysis on economic growth models of energy constraint, this paper tries to find the means to overcome energy constraint and achieve sustainable economic growth in the general framework, so that can provide some references for Inner Mongolia.The following are the main conclusions of this paper. Firstly, through the characteristics analysis of energy consumption, it is indicated that the economic growth in Inner Mongolia has been constrained by energy consumption. Secondly, through the empirical test between energy consumption and economic growth, it is proved that the economic growth in Inner Mongolia depends on energy consumption in the long run and low energy efficiency. Thirdly, through the analysis on economic growth models of energy constraint, it is revealed that under the energy constraints, economic growth can rely on technological progress, human-capital accumulation, advocating the concept of sustainable development to overcome the energy constraint and achieve sustainable economic growth.According to the conclusions, the followings are some recommendations for Inner Mongolia. First, it should increase R&D investment. Second, it should increase human-capital accumulation. Third, it should advocate the concept of sustainable development. Thus, through these means it will promote the change of economic growth pattern in Inner Mongolia, plus achieve sustainable economic growth.