On the relationship between energy intensity and industrial structure in China

Abstract

This paper use cointegration analysis and causality research to analyze the relationship between energy intensity and industrial structure in China. By observation, we find the proportion of secondary industry change not too much in the past decade. So, we are studying the relationship between energy intensity and tertiary industry instead of studying energy intensity and industrial structure. Indirectly, the purpose of the paper is to re-examine a statement that secondary industry is the main factor that caused over-consumption in energy in China. Our finding is that tertiary industry has positive impact on energy intensity in China. It proves that tertiary industry Granger-causes energy intensity.