Co-integration analysis of coal consumption and economic development in China

The co-integration relation analysis and causality test on the coal consumption and economic growth in China is made according to co-integration theory. The result shows that the coal consumption and economic growth in China have a long-run equilibrium relation and a unidirectional causality from GDP to coal consumption which indicates that economic growth can accelerate the demand of the coal. The paper made a further analysis of the result and put forward the suggestion of the sustainable development of the coal industry as follows: coal should be clean used, scientific funds should be given to coal industry and sustainable mining should be implemented in coal mining.