Co-integration Analysis of Energy Consumption and Urbanization------An Empirical Study Based on Shandong Province

摘要

This paper used methods of co-integration analysis and Granger causality estimation to test the relationship between energy consumption and urbanization in Shandong province from 1995 to 2012. Econometric software-Eviews 6.0 was used during the calculation process. All the empirical study experienced several steps including unit root test, co-integration test, error correction model as well as Granger causality estimation. Despite the short-run fluctuation, the empirical study showed that there was a stable equilibrium relationship between energy consumption and urbanization in Shandong province in the long-run. Meanwhile there was a one-way causality relationship from energy consumption to urbanization in Shandong province. Under the background of energy shortage, several energy policies should be carried out to maintain the sustainable energy consumption and urbanization in Shandong province.