Dynamic Relationship between Urbanization and Energy Consumption in China: Based on PVAR Model

Lina Xu, Chunyuan Fan, Shunzen Chen, Xiaofeng Yang, Shaopeng Yang, Yandong Zhang

Ekoloji, 2018, Issue 106, Pages: 477-484, Article No: e106051

OPEN ACCESS

Download Full Text (PDF)

Abstract

In this paper, authors analyzed the dynamic relationship between energy consumption and urbanization using PVAR model with panel data unit root tests, co-integration tests and panel VAR estimate based on provincial panel data from the year of 1990 to 2010 in China. The results show that: (1) there is a long-run co-integration relationship between Urbanization and energy consumption in the eastern, middle and western regions of China. (2) The impact of urbanization on energy consumption is significantly different in the three regions. The strongest effect is in the eastern area, followed by western area and middle area. In order to promote the harmonious development of Urbanization and energy consumption, China should improve the energy use efficiency and develop energy consumption policies according to the different relationships between urbanization and energy consumption in the eastern, middle and western areas.

Keywords

urbanization, energy consumption, panel data VAR model

References

  • Xu D, Li Y (1991) Research on the Relationship between Urbanization and Energy Consumption of Shandong Province. China Population Resource and Environment, 11: 19-24.
  • Jones DW (1997) How Urbanization Affects Energy-Use in Developing Countries. Energy Policy, 7: 621-630.
  • Parikh J, Shukla V (1995) Urbanization, Energy Use and Greenhouse Effects in Economic Development: Results from a Cross-National Study of Developing Countries. Global Environmental Change, 2: 87-103.
  • Liu Y (2007) Analysis of Resource Consumption Characteristics and Response during the course of urbanization in Jiangxi Province, 6: 50-53.
  • Peng B, Lei J (2010) The Energy Restrict during the Process of China Urbanization Based on Grey System, 9: 114-119.
  • Wang Y (2011) Analysis of the Effect of Urbanization on Energy Consumption and Pollution Discharge. Research on City Development, 18(3): 53-57.
  • Dai D, Liu H (2011) An Empirical Research and STIRPAT Model Analysis of Urbanization and CO2 Emissions in China. Advances in Information Sciences and Service Sciences, 3(11): 848-852.
  • Zhang C, Lin Y (2012) Panel Estimation for Urbanization, Energy Consumption and CO2 Emissions: A Regional Analysis in China. Energy Policy, 49: 488-498.
  • O’Neill BC, Ren X, Jiang L, et al. (2012) The Effect of Urbanization on Energy Use in India and China in the Ipets Model. Energy Economics, 34: S339-S345.
  • Wei BR, Yagita H, Inaba A, et al. (2003). Urbanization Impact on Energy Demand and CO2 Emission in China. Journal of Chongqing University. Eng. Ed, 2: 46-50.
  • Poumanyvong P, Kaneko S (2010) Does Urbanization Lead to Less Energy Use and Lower CO2 Emissions? A Cross-Country Analysis. Ecological Economics, 70(2): 434-444.
  • Al-Mulali U, Binti Che Sab CN, Fereidouni HG (2012) Exploring the Bi-Directional Long Run Relationship between Urbanization, Energy Consumption, and Carbon Dioxide Emission. Energy, 46(1): 156-167.
  • Sadorsky P (2013) Do Urbanization and Industrialization Affect Energy Intensity in Developing Countries? Energy Economics, 37: 52-59.
  • Liu Y (2007) Dynamic Econometric Analysis of the Relationship between Urbanization and Energy Consumption in China. The Study of Finance and Economics, 33: 72-81.
  • Huang X (2009) Dynamic Econometric Analysis of the Relationship between Urbanization and Energy Consumption—Take the Power Consumption of Shanxi Province for Example. The Study of Urban Development, 16: 92-98.
  • Yuan X, Fang Y, Zhang B (2011) Dynamic Econometric Analysis of the Relationship between Urbanization and Energy Consumption—Take the Guanzhong Urban Agglomeration for Example. The Study of Urban Development, 18(Urban Studies): 65-71.
  • Yang S, Han J (2012) Urbanization and Energy Consumption: Measurement of Dynamic Relationship and Calculation of Contribution—Empirical Analysis Based on Data of Gansu Province. The Northwest Population, 33: 120-125+3.
  • Al-Mulali U, Fereidouni HG, Lee JY, et al. (2013) Exploring the Relationship Between Urbanization, Energy Consumption, and CO2 Emission in Mena Countries. Renewable and Sustainable Energy Reviews, 23: 107-112.
  • Zhang Z, Dang X (2013) Research on Nonlinear Dynamic Relationship of China Urbanization and Energy Consumption. Urban Problems, 10: 20-39.
  • Lin B, Ouyang X (2014) Energy Demand in China: Comparison of Characteristics between the US and China in Rapid Urbanization Stage. Energy Conversion and Management, 79: 128-139.
  • Pan D, Ying R (2012) Research on the Relationship between Water Resources and Agricultural Economy Growth in China —Based on Penal VAR Model. Population Resource and Environment in China, 22: 161-166.
  • Sims CA (1980) Macroeconomics and Reality-Econometrical. Journal of the Econometric Society, 1-48.
  • Chen S, Wang M (2011) Research on the Robustness of China’s Banking System—Empirical Analysis Based on Panel VAR. Quantitative Economy Technology and Economy Study, 10: 64-77.
  • Lin B, Liu X (2010) Carbon Emissions during the Urbanization Process in China: Influence Factors and Emission Reduction Tactics. Economic Research, 8: 66-78.
  • Zhou Y, Tian S (2006) Data Repair of Provincial Urbanization Level Based on the Data from the Fifth Population Census. Statistical Study, 1: 62-65.
  • Huang X, Zhang M (2007) The Effect of Foreign Direct Investment on Employment in China: Based on Panel VAR Model. Journal of Central University of Finance and Economics, 01: 71-75.