Interaction between economic growth energy consumption and environmental pollution

Abstract

A large amount of energy consumption promotes rapid economic growth and brings serious environmental pollution problems. The purpose of this paper is to study the dynamic interaction between economic growth, energy consumption, and environmental pollution. This paper selects the 2003-2016 A-provincial time data as the research object, and constructs a vector autoregressive model based on economic, energy and environmental related data. The Johansen cointegration test, Granger causality analysis, IRF impulse response and variance decomposition method were used to empirically analyse the dynamic interaction between energy consumption, economic growth and environmental pollution. The results show that there is a long-term equilibrium relationship between energy consumption, environmental pollution and economic development. Economic growth and energy consumption are the Granger causality of environmental pollution. The positive impact of energy consumption on economic growth is long and stable. The interpretation of energy consumption on environmental pollution is 44.2%, indicating that environmental pollution is more affected by changes in energy consumption.