Research About Influence Of Energy Consumption And Technological Progress On Economic Growth

::The State Council of China formally introduced the "12th five-year plan "of energy development in the beginning of2013. This plan put forward the target of energy development in2015considering the factors of resources, technical, environmental and economic, ect. At present, the economy of China is in transition, Rely solely on the increase of the amount of production factors to spur economic growth is diminishing marginal returns when the level of technological progress have no qualitative improvement. Therefore, to ensure the healthy and stable development of the economy, the productivity should be improved by technological progress, and the economic growth should be promoted adapted to energy, capital, labor and other production factors.This paper researched the relationship between the energy consumption, technological progress and economic growth.And some corresponding policy recommendations are put forward to teal with the problems existed in energy consumption and technological progress.First of all, the study analysised the relationship between the energy consumption, technological progress and economic growth in the national level. Currently, China’s energy consumption level is still in the left of the inverted "U" shaped Kuznets curve, and the technological progress is still very low compared to developed countries. The results indicated that there is positive cointegration relationship between energy consumption, technological progress and economic growth, based on cointegration and VAR models. Granger causality test showed that energy consumption and technological progress is the Granger cause of economic growth. The results of impulse response analysis and variance decomposition analysis suggested that the impact of energy consumption on economic growth is not long-lasting, and relying on energy consumption to stimulate economic growth is not sustainable, however, the impact of technological progress on economic growth is persistent.Secondly, the paper researched the regional differences of influence of energy consumption and technological progress on economic growth, based on provincial panel data. In this section, energy is seen as a production factor such as capital and labor, the extended Cobb-Douglas production function was constructed to study the effect of capital, labor, energy and TFP on the economic growth. The results showed that capital and labor is still the important factors for growth, while the output elasticity and the contribution rate of energy is small, and there existed regional differences. The contribution rate of TFP to growth is second only to the capital, and this contribution rate in the middle region is higher than other two regions, which may because there exist "spillover effect" from the east to the middle and the west. In addition, the TFP from the measure and calculate in the three regions are showing a downward trend, which may because the following reasons:On the one hand, this is due to the contribution rate of capital has been an upward trend, while the contribution rate of labor and energy is relatively stable; On the one other hand, the total output curve may be an upward sloping "S" shaped curve, as the economy continues to increase, the factors of production are diminishing marginal product when the level of technological progress have no qualitative improvement, coupled with the financial crisis since2008, the economic growth rate has slowed since the economy of China is in transition and adjustment, therefore, the TFP explained by "Solow residual" in the growth rate is also decreased.At last, this paper pointed out the problems existed in the energy consumption and technological progress, and some corresponding policy recommendations are put forward to promote economic growth adapted to energy, capital, labor and other production factors.