The Regional Comparison Study of Co-integration Relationship between China's Coal Consumption and Its Economic Growth

Abstract

This paper uses co-integration theory and time series cross-section data model to empirically study cointegration relationship between Chinai¯s coal consumption and economic growth in eastern, middle and western regions of China firstly. The research results show that there is a stable long-term equilibrium relationship between coal consumption and economic growth in the eastern region, this is a unidirectional relationship from economic growth to coal consumption. In middle region of China the obvious bidirectional long-term causal relationship and the bidirectional short-term causal relationship co-exist. However, there is a long-term co-integration relation in western region and the short-term causality is not tenable. And then combined the data of economic growth, energy and coal consumption in China, we conclude that relationship between coal consumption and economic growth is significantly different among various regions because of the level of economic development and its operation mechanism. Finally, some policy suggestions are put forward to promote the coordination development of energy and economy in various regions of China.