Abstract:
This paper selects primary energy consumption data of China during 1982-2010 as sample and measures the amount of energy gap in our country through the establishment of VAR model between the international energy price volatility and domestic primary energy prices. It finds that the primary energy gap increases year by year, and energy external dependency deepens. The international energy price has a significant influence on domestic primary energy prices, with a lagging impact on China's CPI. This paper proposes some suggestions to achieve the objectives of energy security and economic growth at the same time, which are energy structure adjustment, regional efficiency difference adjustment and internal energy replacement.