An Empirical Analysis of Energy Consumption, FDI and High Quality Development Based on Time Series Data of Zhejiang Province.

Shaolong Zeng,Junjie Ding,Danlu Xu,Yiqun Liu

doi:10.3390/ijerph17093321

Abstract

This paper aims to identify the relationship among energy consumption, FDI, and economic development in China from 1993 to 2017, taking Zhejiang as an example. FDI is the main factor of the rapid development of Zhejiang’s open economy, which promotes the development of the economy, but also leads to the growth in energy consumption. Based on the time series data of energy consumption, FDI inflow, and GDP in Zhejiang from 1993 to 2017, we choose the vector auto-regression (VAR) model and try to identify the relationship among energy consumption, FDI, and economic development. The results indicate that there is a long-run equilibrium relationship among them. The FDI inflow promotes energy consumption, and the energy consumption promotes FDI inflow in turn. FDI promotes economic growth indirectly through energy consumption. Therefore, improving the quality of FDI and energy efficiency has become an inevitable choice to achieve the transition of Zhejiang’s economy from high speed growth to high quality growth.

Highlights

Since the start of the 40 years of the period of reform and the policy of opening up, China has persisted in making active use of foreign capital
The results of this study showed that Foreign Direct Investment (FDI) helped stimulate economic growth in the long run, it had a negative impact in the short run for the countries in this study [23]
We chose the vector auto-regression (VAR) model to identify the relationships between energy consumption, FDI, and economic growth in Zhejiang by using cointegration tests, impulse responses, and variance decomposition

Summary

Introduction

Since the start of the 40 years of the period of reform and the policy of opening up, China has persisted in making active use of foreign capital. Energy consumption has seen a significant increase. China has become the world’s largest energy consumer, accounting for 23.2% of global energy consumption and. The traditional economic development remains highly energy-intensive, with high energy consumption, high pollution, and high emissions. The inefficient use of resources and increasing environmental pollution have caused extensive damage to the environment. To solve this problem, China needs to shift to high quality and sustainable growth, with a high-end industrial chain, high quality economic development, and efficient operation transformation. “Clear waters and green mountains are as good as mountains of gold and silver.” President Xi Jinping made this dialectic notion in his speech while he held office in Zhejiang

Objectives

Methods

Results

Conclusion