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Research on dynamic relationship between natural gas consumption and economic growth in China

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  • Li, Zhi-Guo
  • Cheng, Han
  • Gu, Tian-Yao

Abstract

As the third-largest natural gas consumption market, natural gas is of great significance to the economic growth and structure of China. The promotion of natural gas will greatly change the production in every industry directly or indirectly. Based on the modified Cobb-Douglas function, this paper established the panel data from 30 provinces of 2000–2014 to study the relationship through panel quantile regression. The panel quantile results proved that the higher level of economy, the greater the marginal effect of natural gas is on economic growth; then considering the different economy scale of provinces, the panel data is divided into three groups, the results have drawn the same conclusion. Thus, measures to develop natural gas and reform gas market have been put forward, including deepening market-oriented reform of natural gas system, perfecting the construction and management of pipeline transportation and encouraging the consumption of natural gas.

Suggested Citation

  • Li, Zhi-Guo & Cheng, Han & Gu, Tian-Yao, 2019. "Research on dynamic relationship between natural gas consumption and economic growth in China," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 334-339.
    • Handle: RePEc:eee:streco:v:49:y:2019:i:c:p:334-339
    DOI: 10.1016/j.strueco.2018.11.006
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