Empirical Analysis on the Relation Between Electronic Industry Development and Energy Consumption

Abstract

Data from 1996 to 2012 is used to conduct co-integration test, VAR model and Granger causality test in order to examine the relation between China's electronic industry added-value and energy consumption. The result of co-integration test illustrates the long-term equilibrium of the relationship between the electronic industry development and energy consumption. The dynamic analysis of VAR model shows that there is a positive response from the economic growth of the electronics industry to energy consumption, while the impact of energy consumption on economic growth is a slightly negative response. It has been proved that the electronic industry development and energy consumption are mutual Granger causality. According to these conclusions, some suggestions are proposed in the end, including accelerating the development of China's electronic industry to promote high-tech electronic products, improving energy efficiency, enhancing research efficacy, creasing the effort for energy development and implementing rational energy policies.