Relationship between energy consumption and economic growth based on grey relational model:a case study of Xinjiang

Abstract

Deep understanding of the relationship between energy consumption and economic growth is of vital importance for exploring the energy saving space in Xinjiang. Based on the data related to the energy consumption and economic growth in Xinjiang from 2005 to 2014 and by using the grey relational analysis method, the correlation between energy consumption in various industries with economic growth and the correlation of energy consumption types with economic growth in Xinjiang are analyzed. As indicated by the results of the analysis, firstly, the relational degrees between energy consumption and economic growth differ significantly among industries. Specifically, the industrial sector and construction industry present the same highest relational degree. Secondly, among the industrial sectors, the manufacturing sector energy consumption has the greatest relevance with economic growth and accounts for the largest proportion. Lastly, the relational degrees with economic growth also differ significantly among various energy consumption types. The coal energy consumption has the highest relational degree with economic growth, while petroleum energy consumption has the lowest relational degree. These illustrate two points. On one hand, the economic growth in Xinjiang has a factor input economic growth mode which strongly depends on energy. On the other hand, the structure of energy consumption in Xinjiang is not reasonable to some degree under the consideration of requirements of the national strategies. Based on this study, some policy implications regarding the industrial energy consumption, energy consumption types, and economic growth in Xinjiang are proposed.