Researches On The Impact Of Energy Prices On Chinese Energy Efficiency Under High Import Dependence

Energy is an indispensable source for production and life,so energy problem is a world topic which draws common concern to all mankind.The development and utilization of energy is of vital importance to social and economic development in our country.In the early stage of economic development in our country,the development of economy depends largely on the cost of the extensive energy consumption,thus causing serious environmental problems and restricted the sustainable development of the economy.The 18 th national congress of the communist party of China(CPC)proposed the double control of the total amount of energy consumption and energy intensity.However,the reality caused great resistance from achieving the goal.At the current,China is the world’s largest energy consumer,producer and net importer,China as a major coal mining countries is also the largest importer of coal.Chinese economic growth is highly depends on the consumption of energy and with high import dependence.Compared with the developed countries,Chinese energy efficiency is relatively low.What are the causes of the lower energy efficiency level? Under the high import dependence,would international energy price fluctuation affect Chinese energy efficiency? If it would,how does it work? Is there a direct impact or an indirectly way? Answering these questions has strong practical significance to energy efficiency improvement,energy conservation and emission reduction goal and trade and economic security.The essay used international and Chinese time series data from 1992 to 2014,based on VAR model,co-integration,impulse-response analysis and variance de-composition methods analyzed the impact of domestic prices,foreign energy prices and domestic and foreign relative energy prices on Chinese energy efficiency respectively from short-term and long-term and dynamically.The empirical analysis results show that there is a long-term positive stable relationship among Chinese energy efficiency,domestic prices,international energy prices and the relative energy prices.By comparison,Chinese energy efficiency affected more by international energy prices than by domestic energy prices.From the dynamic perspective,the fluctuation of both domestic energy prices and international energy prices create positive impacts on Chinese energy efficiency,and the impact of the early period is four.By contrast,the international energy prices fluctuation impact on Chinese energy efficiency is greater than the impact of domestic energy prices.Variance decomposition results show that domestic energy,international energy prices and the relative prices of energy are significant explanations for the fluctuation of Chinese energy efficiency.In contrast,the relative prices have highest interpretation,followed by international energy prices,and finally the domestic energy prices.In general,domestic energy prices has positive impact on Chinese energy efficiency,this implies that a reasonable ascension in energy prices can play a guiding role on saving energy and reducing energy consumption.Chinese energy efficiency is affected by the international energy prices slightly higher than the domestic prices.In the long-term,foreign energy prices will through "the price-the price" path to give a relatively obvious promotion effect on energy efficiency of China.This phenomenon is caused by highly dependent on energy imports and deviating of domestic energy prices from the market.Chinese energy efficiency is influenced by the international energy market prices greater than the domestic energy market prices.Due to the steadily rising energy import dependence in recent years,large fluctuations in the international energy prices can easily cause huge bad impact on Chinese economy and trade.Therefore,reasonable positions of domestic energy prices,lower energy import dependence and researches on clean energy and new energy are important for the moment.