Cointegration Analysis and ECM of Energy Consumption and Industrial Economic Growth of China

This paper analyzes the long-term equilibrium relationship between GDPI and TEC of China by using statistics data from 1953 to 2008. The research shows that there is one-way Granger-causality between the total energy consumption growth and industrial growth, the growth of the total energy consumption impacts on industrial economic growth, and it also shows that industrial economic growth benefits energy development, and the purpose of energy-saving can be achieved through technical innovation.