Preprint Article Version 1 This version is not peer-reviewed

# Co-integration and Causality Analysis of Carbon Intensity and Coal Consumption of China

Version 1 : Received: 26 March 2017 / Approved: 27 March 2017 / Online: 27 March 2017 (10:33:34 CEST)

How to cite: Wang, X.; Fan, Z.; Zhang, Y. Co-integration and Causality Analysis of Carbon Intensity and Coal Consumption of China. Preprints 2017, 2017030197 (doi: 10.20944/preprints201703.0197.v1). Wang, X.; Fan, Z.; Zhang, Y. Co-integration and Causality Analysis of Carbon Intensity and Coal Consumption of China. Preprints 2017, 2017030197 (doi: 10.20944/preprints201703.0197.v1).

## Abstract

Co-integration and Causality was built to conduct studies on causality relation between carbon intensity and coal consumption leading to providing important basis for the transition to a low carbon economy. The EG two-step method was performed to study the relation between carbon intensity and coal consumption of China during 1990-2015 and the co-integration and Granger test was constructed to build up the co-integration and error correction models for analysis of the interaction between carbon intensity and coal consumption. The results showed that in long term there is a stable co-integration relation and a positive correlation between carbon intensity and coal consumption; whereas fluctuations exist in short term and there is a one-way Granger causality of carbon intensity with respect to coal consumption.

## Subject Areas

carbon intensity; coal consumption; co-integration test; Granger causality; error correction model