An Empirical Study on the Relations between Rural Energy Consumption and Economic Growth

  •  Chen Qiu    
  •  Lin Zhang    
  •  Yuansheng Jiang    


By using the granger causality test and impulse response function, this paper analyzed the causal, dynamic and quantitative relations between rural energy consumption and economic growth on the basis of the data from 1980 to 2007 in China, and then drawn a conclusion that rural economic growth is the granger cause of rural energy consumption with a lag of 5 years; rural economic growth has a direct influence on the rural energy consumption. Its contribution is gradually increasing year by year, and it has already reached 22.117% at period 10. Based on this conclusion, this paper considered that the new point of rural economy should be explored; the construction of rural energy should be strengthened; the energy conservation awareness of farmers should be promoted; and the structure of rural energy consumption should be changed.

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