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An investigation of the role of China's urban population on coal consumption

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  • Michieka, Nyakundi M.
  • Fletcher, Jerald J.

Abstract

This paper investigates the causal relationship between urban population, real GDP, electricity production and coal consumption in China for the period 1971–2009. Using a vector autoregression framework and a modified version of the Granger (1969) causality test proposed by Toda and Yamamoto (J. Econ. 66 (1995) 225), the results suggest that there is causality running from GDP to coal consumption. The variance decomposition analysis report that urban population and coal affect electricity production variability over the forecast period. We also find that increasing urban population may negatively affect China's GDP over time. Policy measures aimed at influencing GDP could ultimately affect coal consumption.

Suggested Citation

  • Michieka, Nyakundi M. & Fletcher, Jerald J., 2012. "An investigation of the role of China's urban population on coal consumption," Energy Policy, Elsevier, vol. 48(C), pages 668-676.
  • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:668-676 DOI: 10.1016/j.enpol.2012.05.080
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    Cited by:

    1. Liddle, Brantley & Lung, Sidney, 2013. "Might electricity consumption cause urbanization instead? Evidence from heterogeneous panel long-run causality tests," MPRA Paper 52333, University Library of Munich, Germany.
    2. Shahbaz, Muhammad & Loganathan, Nanthakumar & Sbia, Rashid & Afza, Talat, 2015. "The effect of urbanization, affluence and trade openness on energy consumption: A time series analysis in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 683-693.
    3. Brantley Liddle & George Messinis, 2015. "Which comes first - urbanization or economic growth? Evidence from heterogeneous panel causality tests," Applied Economics Letters, Taylor & Francis Journals, vol. 22(5), pages 349-355, March.
    4. Zhang, XiaoHong & Hu, He & Zhang, Rong & Deng, ShiHuai, 2014. "Interactions between China׳s economy, energy and the air emissions and their policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 624-638.
    5. Li, Bing-Bing & Liang, Qiao-Mei & Wang, Jin-Cheng, 2015. "A comparative study on prediction methods for China's medium- and long-term coal demand," Energy, Elsevier, vol. 93(P2), pages 1671-1683.
    6. Shahbaz, Muhammad & Chaudhary, A.R. & Ozturk, Ilhan, 2017. "Does urbanization cause increasing energy demand in Pakistan? Empirical evidence from STIRPAT model," Energy, Elsevier, vol. 122(C), pages 83-93.
    7. Wu, Ya & Zhang, Wanying, 2016. "The driving factors behind coal demand in China from 1997 to 2012: An empirical study of input-output structural decomposition analysis," Energy Policy, Elsevier, vol. 95(C), pages 126-134.

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    Keywords

    China; Coal; Population;

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