『Abstract
The aim of this paper is to re-examine the relationship between
coal consumption and real GDP of China with the use of panel data.
This paper applies modern panel data techniques to help shed light
on the importance of the heterogeneity among different regions
within China. Empirical analyses are conducted for the full panel
as well as three subgroups of the panel. The empirical results
show that coal consumption and GDP are both I(1) and cointegrated
in all regional groupings. Heterogeneity is found in the GDP equation
of the full panel. The regional causality tests reveal that the
coal consumption-GDP relationship is bidirectional in the Coastal
and Central regions whereas causality is unidirectional from GDP
to coal consumption in the Western region. Thus, energy conservation
measures will not adversely affect the economic growth of the
Western region but such measures will likely encumber the economy
of the Coastal and Central regions, where most of the coal intensive
industries are concentrated.
Coal consumption; Economic growth; Panel cointegration』
1. Introduction
2. Coal use and the regional structure of China
3. Empirical methodology and data description
3.1. Panel unit root tests
3.2. Panel cointegration test
3.3. Short-run causality
3.4. Long-run causality
3.5. Data description
4. Empirical results
4.1. Overall panel unit root and cointegration
4.2. Overall short-run and long-run causality
4.3. Regional panel unit root and cointegration
4.4. Regional short-run and long-run causality
5. Conclusions and discussions
References