The Relationship Research Between Energy Consumption And Economic Development

With the continuous progress of human civilization,economic development has shown more and more dependence on energy,especially when entering industrialization era,industrial production requires plenty of energy as material support,energy status in the development of the national economy is more and more important,which has gradually become the main indicators of sustainable and healthy economic development.Energy consumption provides the driving force for economic development,in turn,the development of the economy to optimize the energy consumption structure,improve the level of energy utilization.However,the currently used main energy is nonrenewable fossil energy,when the economy obtain the rapid development,the energy storage capacity is declining,and a large number of environmental pollution problems has been caused by the exploitation of fossil energy,which attracts more people's attention.In the context of resource shortage and environmental pollution,it's imperative to consider how to ensure economic development,at the same time,reduce pollution,and achieve sustainable economic development.In this paper,the impact of energy consumption on economic development will be analyzed,since the BRICs countries have the most similar development stages as developing countries,so they will be selected as research object to do some related theoretical and empirical research,which include the following parts:First of all,the research has been made on previous researches,which classified in detail from dimension of theoretical study and empirical study,foreign research and the domestic research.Many results have shown that there are causal relationship between these two variables,but it's difficult to make a consistent conclusion as the objects of study are different,so with short-term and long-term conclusions.Secondly,the mechanism of interaction between energy consumption and economic development will be analyzed,the energy consumption will promote the development of production,economies of scale,technological progress and the improvement of people's living standard.And economic growth,on the one hand,will promote energy industry to grow,which stimulates the energy demand.On the other hand,it will also promote the use of energy technology,and provide a solid material foundation for the development and utilization of energy.BRICs economic development and energy consumption status have shown that the proportion of BRICs in terms of GDP has taken more shares in the total amount of GDP in the world economy.In 2015 has reached 41%,according to the economic center of China forecast that in 2020 it will reach 31%,the future is likely to be accounted for more than 50%.The advance of economic globalization makes the BRICs enhance their comprehensive strength,so with overall influence,but in the index of per capita indicator has exposed the gap between the developing and developed countries.Energy consumption shows that the BRICs mainly consume fossil energy coal,oil and natural gas,the utilization of clean energy is still in a relatively backward stage.Being affected by the national policy,with the continuous breakthrough of bottleneck technology,the utilization of clean energy will be improved.The empirical research on energy consumption and economic development is carried out by means of stationary test,co-integration analysis,Grainger causality test,mixed effects,random effects and fixed effects,respectively.The empirical results have shown that:energy consumption and economic development not only in the short term have a close relationship,there is a common trend in the long run.Based on the regression equation,when economic development changes a unit,energy consumption in conjunction with 5.2 units change.The conclusions for causality test,however,are different for different countries.For Brazil,Russia and South Africa,there are no causality,which means their development modes are not excessive dependent on energy,and the increase of energy consumption is not directly with economic development;for India,only exists from energy consumption to economic one-way causal relationship,which indicates that energy consumption occupies an important position in economic development;China,on the contrary to India,has one-way causal relationship from economic development to energy consumption,which manifests that under the background of China,energy consumption accounts for a large proportion,but it is still not enough to be a very important reason for economic development.The innovative points in this paper as follows:firstly,this paper applied theoretical and empirical research.Combining the related results obtained from previous studies,new hypothesis has been forwarded.We use panel data to do studies considering both time dimension and space dimension,which can eliminate the particularity of a specific time or specific research object,therefore,the occasional reasons would be expelled from the conclusion.Secondly,the selected period of research object have similar development stage,instead of using single national data,which makes the conclusion more general under the specific methods and perspectives.Thirdly,short-term test for energy consumption and economic development has been carried out,so with long-term situation.All of these tests,to some extent,would improve the credibility of the conclusions.