The Effect of Clean Energy Power Generation on Economic Growth in China: A Perspective Based on Econometric Methods

摘要

To study the impacts of clean energy industry development on economic growth, we have established an econometric model based on the Cobb-Douglas production function. The methods mainly include the cointegration test, vector auto regression model (VAR), vector error correction model (VECM), Granger causality test and impulse response function. As for the obtained results, the paper analyzes the major impacts of clean energy power generation on economic growth from the perspective of four factors: the long-term equilibrium, the short-term fluctuation, the causality and the impulse responses. Moreover, a multiple-linear regression model has been effectively used to analyze the contributions of two kinds of clean energy (hydro energy and new energy) to GDP growth. The results demonstrate that the generation of clean energy may significantly promote long-term economic growth. Notably, this positive influence requires clean energy to have developed to a mature stage. It is suggested that certain novel energy policies could play a critical role in the improvement and upgrading of China's energy industry.