Is Trade Openness the Reason of High Energy Demand in China?

Atif Khan Jadoon, Hafiz Muhammad Qasim, Ambreen Sarwar, Rehan Ahmed Khan and Muhammad Ali
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Atif Khan Jadoon: Department of Economics, University of the Punjab, Pakistan
Hafiz Muhammad Qasim: Department of Economics, Lahore Leads University, Pakistan,
Ambreen Sarwar: Department of Economics, University of the Punjab, Pakistan,
Rehan Ahmed Khan: College of Statistical and Actuarial Sciences, University of the Punjab, Pakistan,
Muhammad Ali: Institute of Business Administration, University of the Punjab, Pakistan.

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 4, 479-485

Abstract: The present study aims to examine the short-run and long-run impact of China s trade liberalization policies on its energy demand over the period from 1980 to 2018. The results of Autoregressive Distributed Lag approach of co-integration show that energy consumption significantly increases as a result of trade openness and increase in real Gross Domestic Product (GDP). The results of the granger causality test also confirm the unidirectional causality running from trade openness and real GDP to energy demand. The results of the study have an important implication because if China wants to continue its trade liberalization policies then it must increase its energy production.

Keywords: Energy Consumption; Gross Domestic Product; Trade Openness; China; Time Series (search for similar items in EconPapers)
JEL-codes: C22 F15 L98 Q43 (search for similar items in EconPapers)
Date: 2021
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