Econometrical Analysis to the Coal Consumption and Economic Growth in China

Based on the basic analysis of China's newest coal consumption data, the theory of co-integration is used in this article to analyze the co-integrate relationship between coal consumption and economic growth and the Granger causality model of coal consumption and economic growth is established, leading to the conclusion that there is no longer long-term co-integrate relationship between coal consumption and economic growth, and that a one-way cause-effect relationship from GDP to coal consumption is existent. Then the article continues to research the effect on reverse -0.931507 proportion of energy consumption and the contribution on positive 0.01947 proportion of economic output exerted by coal consumption. Finally we come to the conclusion that too large proportion of coal consumption significantly caused the lower energy efficiency, and that the contribution to economic output by coal consumption is lower than that of average energy consumption.