Relationship Analysis Between Investment And Energy Intensity -Based On The Directed Acyclic Graph

Energy is an important input factor of economic growth, and investment is an important driver of economic growth. Investment affects the short-term and long-term output level through the demand effect and supply effect, and thus affects the energy utilization. This paper applies directed acyclic graph (DAG) to analyze the corresponding period causality between investment and energy intensity, and uses the hysteresis causality given by the Granger causality test to supplement the results. This paper also applies co-integration test and error correction model to make an empirical study on the fixed asset investment and energy intensity of primary, secondary, and tertiary industry in China from 1991 to 2015. The results show that: there are complex correlations between investment and energy intensity in China's three industries. The investment of tertiary industry and the energy intensity of secondary industry have a negative effect on each other. The investment of primary industry has a negative effect on the energy intensity of tertiary industry. And the investment of secondary industry has an opposite effect on the energy intensity in the long term and short term.