The analysis model of co-integration on economic growth and energy in China

The Paper selects relevant data of GDP and energy consumption from 1953 to 2007 and makes an empirical study on long-term equilibrium and short-term dynamic between GDP and energy consumption through the co-integration test, Granger causality test and ECM. The paper. The paper reveals the connections of economy growth, energy production and consumption. The results indicate that energy consumption and GDP have long-term equilibrium relationship during the process of China´s economic growth. In addition, the total of energy production and energy consumption is the cause of GDP´s Granger test. The total of energy consumption is the cause of the total of energy production´granger test. By analyzing, we can draw a conclusion that there are dependent relation between economic growth and energy supply in china.