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VAR Model for Relations of China's Carbon Productivity and Social Electricity Consumption

Caiqing Zhang, Jincheng Zheng

Abstract



The structure optimization of terminal energy consumption plays an important role in increasing carbon productivity. The effects of electricity production consumption for improving carbon productivity are researched through exploring the relationship between carbon productivity and social electricity consumption. Firstly the data of China's GDP and total CO2 emissions from 1990 to 2011 are collected and China's carbon productivity values are calculated according to carbon productivity model. A long co-integration relationship indeed exists between carbon productivity and social electricity consumption by means of co-integration test, VAR-Granger causality analysis model, pulse analysis and variance decomposition method, when giving a positive impact to social
electricity consumption, the mutual impact action between the two variables can be seen from pulse test and variance decomposition, social electricity consumption have a lasting positive effect on promoting carbon productivity and have a greet contribution to carbon productivity. Finally, three pieces of advice of improving China's carbon productivity are given.

Keywords


Carbon productivity; Social electricity consumption; VAR model

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