Empirical Analysis of the Relationship between Energy Consumption and Economic Growth in Sichuan Province Based On Panel Data

Abstract:  This study explores the empirical analysis of the relationship between energy consumption and economic growth in Sichuan Province through a panel data approach. The study collected data on GDP, energy consumption, labor force population and capital stock of 18 cities in Sichuan Province (Liangshan Prefecture, Ganzi Prefecture and Aba Prefecture were not counted due to the lack of corresponding data) from 2013 to 2022, constructed a panel data model, and combined with the production function to carry out a panel data unit-root test and a panel cointegration test, and the empirical study shows that there is a long-run cointegration of Sichuan’s economy and energy consumption The empirical study shows that there is a long-term cointegration relationship between the Sichuan economy and energy consumption, and the relationship is significant. Specifically, for every 1% increase in energy consumption, GDP will increase by 0.38%. This indicates that energy consumption is one of the important factors driving the economic growth of Sichuan Province.