An empirical analysis on the relationship between energy consumption and economic growth in Hebei province

Abstract

Under the background of global warming, on the basis of low energy consumption and low pollution, low-carbon economy has become a global hot spot. Hebei province is the large province of energy production and consumption, especially the use of coal has been high. Based on the 1980-2012 energy consumption and GDP data in Hebei province as the basis, using the unit root test, co-integration analysis and Granger causality test, validate relationship between energy consumption and economic growth in Hebei province. Empirical evidence shows that there is long-term stable state between energy consumption and GDP, and there is unidirectional causality from energy consumption to the economic growth. Finally, put forward suggestions on how to develop low-carbon economy under the premise of no affection in economic development.