Empirical Research on Relations of China's Energy Consumption to Its Industrial Development - Based on Industry Data Analysis from 1996 to 2006

As an important foundation for resources, energy, being an important strategic commodity for the survival of human, economic development and social progress, has been related to national economic lifelines and national security, which plays a decisive role in the modernization of China. Through correlation analysis between China's energy consumption by the industrial and its total energy consumption, the impact of China's current industrial structure on energy consumption can be drawn, while the interactive process of China's energy consumption associated with the main industrial energy consumption will be further understood with the devices of Granger causality test and VAR impulse response. The Government should implement means of incentive and restraint to encourage and guide manufacturers to participate in the construction of a new type of industrialization on their own initiative. This is the only way to realize China's sustained and effective energy-saving policy, and to promote its ecological modernization process finally.