The relation between Chinese economic development and energy consumption in the different periods

Since the 1980s, Chinese economy grew rapidly. With the rapid economic growth, Chinese energy consumption sharply increased. The relation between Chinese energy consumption and economic growth is focused on, and many researchers have studied this issue by applying the methods such as granger causality test. However, the results just reveal the relation in a very long period. In this paper, the history of Chinese economy is divided into four periods. And the relation between Chinese energy consumption and economic growth is examined by applying grey incidence analysis, which is one of the most important methods of grey system theory which can be applied to solve the problems with small samples. The results show that the relations in different periods are not the same. The degree of grey incidences between total energy consumption and values added of secondary industry is larger, and the degree of grey incidences between GDP and consumption of coal is larger too. And the policy implications of these results are explained.