A study on the relationship between economic growth and energy consumption under the new normal

Liming Chen; Zhi Zhang; Fangyuan Chen; Na Zhou; Liming Chen; Zhi Zhang; Fangyuan Chen; Na Zhou

doi:10.3934/NAR.2019.1.28

National Accounting Review

2019, Volume 1, Issue 1: 28-41. doi: 10.3934/NAR.2019.1.28

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Research article

A study on the relationship between economic growth and energy consumption under the new normal

1.
College of Finance and Statistics, Hunan University, Changsha 410006, China
2.
College of Mathematics and Statistics, Hunan University of Commerce, Changsha 410006, China

Received: 01 May 2019 Accepted: 13 June 2019 Published: 19 June 2019
JEL Codes: O4

Drawing on the annual GDP data from 1980 to 2015 and the corresponding energy consumption data per ten thousand yuan GDP, the thesis studies the effects of energy consumption and its changes on economic growth. It is found that the relationship between economic growth and energy consumption assumes a significant two-regime feature, and the development trend shows an obvious asymmetry. Specifically, the regime switching probability and duration of different periods are both different. In particular, between 2010 and 2015, the trend of gradual decoupling of economic growth from energy consumption emerged, following the gradually decelerating growth in China's economy and the continuous changes in its industrial and energy structure. The dependence of economic growth on energy consumption weakened conspicuously.
- economic growth,
- energy consumption,
- MS-VAR
Citation: Liming Chen, Zhi Zhang, Fangyuan Chen, Na Zhou. A study on the relationship between economic growth and energy consumption under the new normal[J]. National Accounting Review, 2019, 1(1): 28-41. doi: 10.3934/NAR.2019.1.28

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Abstract

Drawing on the annual GDP data from 1980 to 2015 and the corresponding energy consumption data per ten thousand yuan GDP, the thesis studies the effects of energy consumption and its changes on economic growth. It is found that the relationship between economic growth and energy consumption assumes a significant two-regime feature, and the development trend shows an obvious asymmetry. Specifically, the regime switching probability and duration of different periods are both different. In particular, between 2010 and 2015, the trend of gradual decoupling of economic growth from energy consumption emerged, following the gradually decelerating growth in China's economy and the continuous changes in its industrial and energy structure. The dependence of economic growth on energy consumption weakened conspicuously.

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