Abstract

Currently, the global economic growth model is based on the input of resources, especially the input of energy. Throughout the energy structures all over the world, mostly coal, oil, natural gas and other high-carbon fossil fuels, and those high-carbon fossil fuels have become the main source of atmospheric carbon dioxide and other greenhouse gases. Economic growth and energy consumption, there should be causal relationship between economic growth and carbon dioxide emissions, the economic growth model can get rid of the fossil energy constraints, whereas carbon dioxide emissions can be disconnected from the economic growth, to cope with these problems facing the development of low-carbon economy in Mongolia. The research makes use of time-series model to test the causal relationship between economic growth and energy consumption, economic growth and carbon dioxide emissions as well as between energy consumption and carbon dioxide emissions.

Highlights

  • The energy structure of Mongolia is dominated by coal, while other renewable clean energy such as solar energy and wind energy accounts for only a very small proportion, so high-carbon fossil energy sources decide the "High-Carbon Model" of Mongolia's economic development(Government of Mongolia, 2011)

  • It has become urgent to adopt strategic choice to develop low-carbon economy, transform economic growth mode, look for a breakthrough in energy conservation and emission reduction, and promote the economic development of Mongolia to transform from high-carbon economy to low-carbon and carbon-free economy, so as to achieve scientific, harmonious and green development

  • Low-carbon economy is developed by closely connecting economic development and carbon emissions formed during the industrial civilization period so that the economic development and the accumulation of wealth shall no longer be achieved through the burning of fossil fuels

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Summary

Introduction

The energy structure of Mongolia is dominated by coal, while other renewable clean energy such as solar energy and wind energy accounts for only a very small proportion, so high-carbon fossil energy sources decide the "High-Carbon Model" of Mongolia's economic development(Government of Mongolia, 2011). Resources and environment have more and more become there straining factor to the economic development and gradually the primary factor affecting the economic development and social progress of Mongolia (Batjargal, Mijiddorj & Ulziisaihan, 1998, p.120-140). This economic and social development model is not sustainable, which presents a violation of the sustainable and harmonious development proposed by the government. It has become urgent to adopt strategic choice to develop low-carbon economy, transform economic growth mode, look for a breakthrough in energy conservation and emission reduction, and promote the economic development of Mongolia to transform from high-carbon economy to low-carbon and carbon-free economy, so as to achieve scientific, harmonious and green development. Mongolia should include low-carbon economy into the national development strategies as soon as possible, changing the macro-economic growth mode through the will of the country, promoting low-carbon production and low-carbon lifestyle, guiding the entire social production and life into low-carbon path, so as to promote a comprehensive and sustainable development of ecology, economy and society as a whole entity

Establishment of Time Series model
Application of Time Series Model
Stationarity of Time Series
Unit Root Test on Stationarity
Co-Integration Test of Time Series
Integration
Co-Integration
Granger Test of Causality on Time Series
Data Selection
Stationary Analysis
Co-integration Analysis
Findings
Conclusion

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