Analysis of the Relationship between Chinese Energy Consumption and Economic Growth Based on Co-integration and Error Correction

By the application of co-integration and error correction model, the relationship between the oil and coal consumption and GDP of China in 1978 and 2008 has been analyzed. In the long run, coal and oil consumption has a relationship of balance with GDP, of which oil consumption is the Granger reason for GDP. In the short run, both present oil consumption and coal consumption have a positive relationship with GDP.