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An Empirical Study of Chinese Energy Consumption and Economic Growth |
SHI Feng-dan |
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Abstract CPI is paid much attention by many people in China. This paper examines the causality between Chinese energy consumption and economic growth during 1978-2007 by introducing CPI. The results indicate that, in the long run, there is a co-integration relationship among energy consumption, GDP and CPI; while in the short run, unidirectional Granger causality runs from GDP to total energy consumption. So reducing the growth rate of energy consumption will not impact economic growth. This result shows that China can reduce its energy intensity by adopting energy-saving policy further, and it would not depress China's economic development.
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Received: 18 November 2008
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Corresponding Authors:
SHI Feng-dan
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