Yang Y.,The Military Economic Academy |
Tong G.,Wuhan University
WIT Transactions on Engineering Sciences | Year: 2014
This paper investigates the relationship between energy price, the energy consumption and output in various industries of China. To account for the fact that the economic activity responds between different sectors, two sets of VAR (vector auto-regressive) models are developed and the impulse responses of identified VAR models indicate that energy price shocks have great effects on the economic activity of several sectors in China. The effects of coal price increases on Mining are positive, while which on Manufacturing and Transportation are negative. The results also indicate that the output of Transportation is affected by oil price shocks negatively and the continued negative effect increasing with the passage of time, while for the oil consumption, the effects are changing in different periods. © 2014 WIT Press.