The Empirical Research of the Causality Relationship Between CO2 Emissions Intensity, Energy Consumption Structure, Energy Intensity and Industrial Structure in China

Abstract

This paper adopts econometrics methodology to explore the causality relationship among CO2 emissions intensity, energy consumption structure, energy intensity and industrial structure in China, during the time period 1980–2009. Multivariate cointegration and vecm model are applied to explore the long-term equilibrium and short-term fluctuation. Base on the granger causality test results, it concludes that there exist four group unidirectional causality relationships from CO2 emissions intensity to energy consumption structure, CO2 emissions intensity to industrial structure, industrial structure to energy consumption structure and energy intensity to energy consumption structure. In addition, a bidirectional causality relationship running from CO2 emissions intensity to energy intensity is detected.