The Research On China’s Economic Growth Under The Constraints Of Energy Consumption And Carbon Dioxide Emissions

Energy is the driving force of economic development and the fundamentalmaterial for human-being survival and development. However, the over-consumptionof fossil fuels leads to the green gas explosion, main in form of carbon dioxide, whichintrigues extreme weather and ecology problems. Under this background, as theworld’s most populous developing country, economic growth is crucial for China.Only considering economic growth with saving energy and reducing emissions, canensure economic growth under the conditions of the maximization of abatingemissions. This paper starts this point to analyze.Firstly, this paper summarizes the research status quo on energy, environmentalquality and economic growth at home and abroad. On this basis, within theframework of neo-classical economic growth theory, this paper introduces energyconsumption and carbon dioxide emissions to analyze China’s economic growththrough Lev Pontrjagin maximum principle. The conclusion is that: the economycontinues to grow under the energy consumption and carbon emissions constraints.As the technology advances, recyclable energy ratio will promote and fossil energyratio will go down. Therefore, we can both achieve abatement of emissions andeconomic growth. Low carbon economic growth is feasible. However, in the shortterm, reducing carbon dioxide emissions through saving fossil energy will have anadverse impact on the economy.Furthermore, in order to analyze the short-term to reduce carbon dioxideemissions impact on the economy, this paper selects the industrial sector as a researchobject. Then, this paper analyzes the current situation of the industrial sector, theindustrial added value and energy consumption. On this basis, by constructing a VARmodel of the industrial sector, establishing the impulse response function, andcomputing all kinds of energy carbon dioxide emission factor, this paper empiricallyanalyzes the abatement cost of energy in the industrial sector. It founds that, theabatement emissions cost of crude, gas, electricity is higher than coal, and therefore, we can reduce emissions through energy conversion policy.Finally, conclusions and policy recommendations of this paper are that, in thelong term, the development of low-carbon economy is the inevitable choice ofChina’s economic development; in the short term, due to the technological and energyconsumption limitations, the way by saving energy to abate emission dramaticallywill have a tremendous impact on the economic growth. However, because differentenergy varies in saving cost and efficiency, energy conversion can both reduce carbonemissions and economic losses. Therefore, in the short term, energy conversionpolicy is an appropriate choice for China.