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

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. [ABSTRACT FROM AUTHOR]