The Researches on Energy Strategy and Sustainable Economic Growth of China

What kind of energy strategy Sustainable economic fits on sustainable economic growth in China? Based on the improved Cobb-Douglas production function, This paper uses Heterogeneous Panel Cointegration to research on the relationship between energy consumption and China economic growth in a time span of 1978 similar to 2009. Test results show that the causal relationship between energy consumption and economic growth needs to differentiate short and long term. The casual relationship is not eminent in the short term. However, they come up with a strong cointegration relationship in the long term. We suggest controlling the scale of resource consumption and improving the efficiency of resource consumption in the short term, in long-term increases energy consumption to promote economic sustainable development.