The influence of energy consumption of China on its real GDP from aggregated and disaggregated viewpoints

Wei Zhang and Shuyun Yang

Energy Policy, 2013, vol. 57, issue C, 76-81

Abstract: This paper investigated the causal relationship between energy consumption and gross domestic product (GDP) in China at both aggregated and disaggregated levels during the period of 1978–2009 by using a modified version of the Granger (1969) causality test proposed by Toda and Yamamoto (1995) within a multivariate framework. The empirical results suggested the existence of a negative bi-directional Granger causality running from aggregated energy consumption to real GDP. At disaggregated level of energy consumption, the results were complicated. For coal, empirical findings suggested that there was a negative bi-directional Granger causality running from coal consumption to real GDP. However, for oil and gas, empirical findings suggested a positive bi-directional Granger causality running from oil as well as gas consumption to real GDP. Though these results supported the feedback hypothesis, the negative relationship might be attributed to the growing economy production shifting towards less energy intensive sectors and excessive energy consumption in relatively unproductive sectors. The results indicated that policies with reducing aggregated energy consumption and promoting energy conservation may boost China's economic growth.

Keywords: Energy consumption; Real GDP; Modified WALD test (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421512008816
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:57:y:2013:i:c:p:76-81

DOI: 10.1016/j.enpol.2012.10.023

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().