Cointegraton analysis of energy demand and industrial structure in China

The relationship between energy demand and industrial structure is analyzed and the results show that there exists a long-run equilibrium relationship between industrial structure and energy demand. When industrial structure fluctuates for 1 percent the energy consumption will vary for 0.449%. The result implies the significant impact does the industrial structure play on energy consumption in China. Causality analysis results indicate the unidirectional causality relationship running from energy consumption to industrial structure exists which implies that he energy industry in China is such an important factor to pull the economic growth that the percentage of the energy industry product especially the coal industry product accounting for the whole GDP is too high to an irrational industrial structure. The increasing energy demand especially coal demand should be responsible for the excessive mining of coal and then high frequency of accidents in coal mine in China.