Analysis of Diesel Oil Consumption Characteristics of 36 Major Sectors of Chinese Industry- Based on Panel Co-integration

This paper constructs the panel diesel oil consumption model and defines the panel data for diesel oil consumption and growth as well as diesel oil efficiency for 36 major sectors of Chinese industry during 1993-2007. Applying the panel unit root W test by IPS, we have concluded that the panel data is generated by the panel unit root process. This paper tests panel co-integration among three panel variables by Pedroni residual co-integration test and estimates the model with FMOLS proposed by Philips and Hansen. The results show that there is a panel co-integration relationship among the three panel variables which characterizes the diesel oil consumption of the 36 major sectors of Chinese industry. The conclusions and their implications in this paper can be taken as reference evidence for formulating a long-run energy strategy for China. This has important significance for China to reduce diesel oil consumption, control greenhouse gas emissions and achieve sustainable development.