The relationship between Chinese energy consumption and GDP: An econometric analysis based on the grey relational analysis(GRA)

Since Chinese energy consumption is closely related to the GDP, industrial structure, technology progress, and opening degree, three indexes are selected by the authors herein by means of grey relational analysis, including the tertiary industry proportion, the research expenditure from governmental finance, and the foreign trade dependence level, which have more correlation with Chinese energy consumption and are applied to express the three variables mentioned respectively. In the beginning, this article analyzes the long-term relationship between Chinese energy consumption and these variables related based on econometric approach, and then attempts to give some suggestions on how to improve the utilization efficiency of Chinese energy and how to slowdown the energy consumption demand according to the econometric model presented previously.