The dynamic relationship between energy consumption, investment and economic growth in China's rural area: New evidence based on provincial panel data
Yu Hao,
Ling'ou Wang,
Lingyun Zhu and
Minjie Ye
Energy, 2018, vol. 154, issue C, 374-382
Abstract:
This study investigates the dynamic relationship between rural GDP, rural energy consumption and rural investment based on a provincial panel data set covering the 1995–2010 period. The vector error correction model (VECM) and fully modified ordinary least squares (FMOLS) are utilized to examine the short- and long-run causal relationship between the variables of interest. Then, the impulse response function (IRF) and variance analysis are used to examine the dynamic impact of the process and the contribution of relevant factors. The estimation results indicate that there is two-way Granger causality between rural GDP and rural investment and unilateral Granger causality extending from rural energy consumption to rural GDP and investment in the long term. Furthermore, the results also verify the existence of unidirectional causal relationship from rural GDP to rural investment and bilateral causal relationship between rural GDP and rural energy consumption in the short run. Hence, it is feasible for China to promote economic development through hastening the optimization and upgrading of its rural industrial structure and encouraging and promoting the use of green energy. Additionally, rural economic growth is helpful for stimulating rural investment and energy consumption, which in turn benefits economic development in rural areas.
Keywords: Rural area; Energy consumption; Investment; Economic growth; Panel data (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544218307588
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:energy:v:154:y:2018:i:c:p:374-382
DOI: 10.1016/j.energy.2018.04.142
Access Statistics for this article
Energy is currently edited by Henrik Lund and Mark J. Kaiser
More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().