Energy Consumption In Shanxi Province And Its Influencing Factors

Along With the development of human history, effect of energy for human life andproduction is increasingly obvious. Energy can have a certain effect on the allocation ofresources, industry, environment etc, then gradually have an important effect on the economicgrowth. The reform and opening up to the economic development of Shanxi province hasbrought hitherto unknown opportunities, economic growth rate of two digit, but at the sametime, thei energy consumption growth of ShanXi province is improving, rapid growth inenergy consumption makes economic growing dependence on energy. So, it is necessary forthe research on the relationship between energy consumption and its influence factors inShanxi Province, which provides a scientific basis for the formulation of energy policy.This paper did unit root test,cointegration test and Grainger test for energy consumptionGDP,energy consumption structure, industrial structure and energy prices sequences from1995to2012in Shanxi province, they are obtained by examining the entire sequence with asingle step, but there is no co-integration relationship between them.Then this paper created the vector autoregression model among Shanxi Energyconsumption, energy consumption structure, industrial structure, energy prices, and theresident population in Shanxi, that VAR model, After that, I tested the stability andeffectiveness of VAR model by Eviews software, and the impulse response function, impulseresponse function plot in Fig comprehensive analysis of the relationship among variables,then use variance decomposition analysis to obtain the energy consumption,structure,industrial structure, energy prices and the resident population of Shanxi Province,these five variables on the contribution of energy consumption in Shanxi Province.Finally, this paper made five recommendations to improve the situation of energyconsumption in Shanxi Province: adjusting energy structure, updating national consumerattitudes guide; optimizing the structure of industrial, increasing the investment in science and technology; optimizeing the energy consumption structure, controling the size of population,establishing a rational energy pricing mechanism.