Inverted U curve in economic growth and energy consumption: evidence from China

摘要

This paper uses unit root tests including LLC, IPS, PP and ADF and Pedroni cointegration test to study the relationship between economic growth and energy consumption. By initially determined the casual relationship, we construct an inverted-U curve model to reexamine the connection of the two variables. Evidence from China's panel data including 29 provinces from 1995 to 2010 supports the inverted-U curve in the relationship and the turning point is at 23432 yuan. The explanation for this is that industrial upgrading and technological innovation are conducive to energy conservation.