Abstract
This article applies the partial least squares (PLS) method and its supplementary methods to model the relationship between energy consumption and economic growth in China. Using the PLS algorithm, we obtain the quantitative linear model. Further analysis of variables and samples shows two methods to reduce China’s energy consumption for unit gross domestic byproduct (GDP) production: Developing the tertiary industry and improving its ratio in GDP and increasing the scale of production and adopting new agricultural technology. Furthermore, studies also reveal two threats: An economic stimulus in rural areas may lead to a sharp and immediate increase in energy consumption and the overheated economy caused by the construction industry will lead to the unusual energy consumption mode. This article offers an empirical case of referential value in the quantitative simulation of the relationship between energy consumption and economic growth, especially in marginal analysis and outlier identification.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Energy Sources, Part B: Economics, Planning, and Policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
