Relationship between agricultural energy consumption and economic growth based on panel data model in China

It is of great practical significance to reveal the differences of agricultural energy consumption and economic growth in regions of China. By taking three regions in China as the research object, the paper built the panel data model to analyze the relationship between agricultural energy consumption and economic growth based on the panel data of 30 provinces from 1990 to 2008. The results showed that Granger causality existed in each region and made different changes along with the level of economic development. Meanwhile, the bidirectional and long-term Granger causality existed in western region. The differences of the relationship between agricultural energy consumption and economic growth were revealed quantitatively by model analysis for three regions of China and also for provinces of each region. The close degree of the relationship between agricultural energy consumption and economic growth was analyzed in detail, and the difference in agricultural output of different regions caused by increasing energy input was also take into account. Finally, some suggestions were put forward in the paper which can provide references for study of sustainable development of agricultural economy and energy policy making in different regions of China.