The Relationships Between Renewable Energy, Energy Conservation And Economy Based On The Theory Of Non-equilibrium Co-integration

Developing renewable energy is an important measure to balance the relationships among China’s economic growth, energy consumption and environmental protection. It’s also the strategic choice to achieve our emission reduction targets. Under the enormous pressure of energy-conservation, how to promote the energy reform, and how to properly handle the relationship among the new energy consumption, economic growth, and environmental protection is not only the key to achieve the healthy development of China’s energy sector, but also be related to the coordination of energy system, environment system and economic system.Firstly, this paper analyzes the long-term equilibrium relationship among energy consumption, economic growth and carbon dioxide emissions from year 1978 to 2013 by using econometric models such as the cointegration test, non-equilibrium co-integration model and Vector autoregression model. The influence of energy efficiency, energy structure, economic growth and other factors on carbon emissions in China is also analyzed based on Kaya model. The results show that the effects of energy structure to carbon dioxide emissions has great disparities in different years, expressed as fluctuations in negative and positive effects.Furthermore, the non-equilibrium relationship and short-term fluctuations relationship among the renewable energy consumption, energy-conservation and economic growth is empirical analyzed. The results show that carbon dioxide emissions and economic growth are the Granger reason to renewable energy consumption. When the short-term fluctuations of renewable consumption deviates equilibrium mode, the adjustment process has asymmetric feature. When the short-term fluctuation of the relationship between renewable energy consumption and economic below the equilibrium state, market power will force greater efforts to pull it back from the non-equilibrium state. This adjustment perfect reflects the benign adjustment mechanism of market power in the process of renewable energy developing. It inspires us that market power must be given adequate attention in the development of renewable energy. Finally, in order to promote the development of renewable energy, this paper designs a new mechanism to coordinate the relationship among economic growth, energy-conservation and environmental protection based on the result of non-equilibrium analysis.