The Relationship Between Energy Consumption And Economic Growth In Jiangsu, Zhejiang And Shanhai

As the motivation of the social and economic development of the countries all over the world,energy is the necessary material resource of world economic development and people’s lives.Jiangsu, Zhejiang and Shanghai are the big provinces that consume energy, the issue of energyconsumption is not only the actual problem that they have to face when keeping sustainableeconomic development, but also related to the implementation and execution of their12thFive-year Plan. Correctly recognizing the relationship of energy consumption and economicgrowth not only provides basement for the development strategy of Jiangsu, Zhejiang andShanghai’s future energy, but also realizes their sustainable development of energy consumptionand economic development.On the basis of elaborating the relative theory of energy consumption and economicdevelopment as well as describing the energy consumption state, this study applies some paneldata models and VAR model to systematically study the dynamic characteristics of the correlationof energy consumption and economic development based on the statistical data of the total energyconsumption and GDP of Jiangsu, Zhejiang and shanghai. First of all, the conclusion of panelintegration and panel regression analysis demonstrates that there is long-term balancedrelationship between the energy consumption and economic development. The elastic coefficientof energy consumption acting on their economic development is a little bit different. The result ofthe reliable bootstrap causality test for small samples declares that there is both-way Grangercausality relationship between energy consumption and economic development in JiangsuProvince. However, in Shanghai city and Zhejiang Province there is only the single-way Grangercausality relationship between energy consumption and economic development. Finally, accordingto the analytic result of VAR model, it’s concluded that there is quite strong forward direction ofeconomic development acting on the change of energy consumption in Jiangsu, Zhejiang andShanghai. The contribution rate of the variation of energy consumption on the change of economicdevelopment in Zhejiang is larger than that in both Jiangsu and Shanghai.For the issue of the sustainable development of economy and energy consumption, this paperproposes some useful suggestions according to the conclusion of empirical analysis in the last, andthen puts forward some problems which are worthy being further studied in the next days.