Study On The Influence Of The Chinese Government Investment On The Ehergy Efficiency

Since the reform and opening up, China’s economy has been in a period of rapid growth, energy consumption is also growing. With economic development, China’s total production of energy has been insufficient to meet our energy consumption, ever need to rely on imports to make up the gap in energy consumption, which has brought greater pressure on China’s energy security. This has brought greater pressure on China’s energy security. It is still relatively low compared with the world average. Although China’s energy efficiency has been improving. Energy intensity in China is1.2times higher than the world average. So how to improve the energy efficiency is of great significance.There are few people researching the impact of government investment for energy efficiency, however, the government as a way to guide the allocation of resources has played an important role in the rationalization and optimization of the Industrial Structure. On the one hand the government achieves the rational allocation of public resources through the rationalization of industrial structure, and to improve energy efficiency. On the other hand, government support for technological innovation and technology spillovers to promote Industrial Structure. This will be also promoting the efficiency of energy. This article study is further on the impact of government investment on energy efficiency.The article first reviews of the literature review of government investment and energy efficiency, and come to the impact of government investment in the industrial structure and technological progress. Then we analyze its impact on the energy efficiency. When the production factors cannot be free flow in the market, there will be a phenomenon of inefficient using of resources. Government intervention can enable to rationalize the allocation of social resources. Thus improve the production efficiency. The main way of government investment affecting technological progress is to support technological innovation and technology spillovers to promote Industrial Structure and high-tech industrialization. Because the company has more efficient than the government in technology research and development, so not all high-tech is supported by the government. Companies develop technology is undoubtedly the best choice when a new technology can enhance their competitiveness and bring adequate returns. So government should support technology which should be biased in favor of high-risk projects and high-tech industries.In the empirical part of the article, we use the panel data from1997to2010,30provinces (municipalities and autonomous regions). And we get the stationarity test and cointegration test to confirm the existence of long-term stable equilibrium relationship of the variable, then we got the data is suitable for using a fixed effect model through the Hausman test, so we choose the fixed effects model on panel data regression. We find that government investment has different regions affect in energy efficiency. Government investment has a negative impact on energy efficiency in the eastern region, and has positive impact in the Midwest. Finally, according to the empirical results, this paper gives some recommendations to adapt to the eastern, central and western.