Dynamic Analysis between Urbanization and Shanxi Power Consumption

The paper analysis the dynamic relationship between energy consumption and urbanization using SVAR model with Impulse response functions and variance decomposition based on time series data of 1990-2010 in Shanxi Province. The results show that: urbanization accelerates energy consumption in the short term and decreases energy consumption in the long run, but the contribution is smaller. Therefore, it is an important way for the balance between urbanization and energy consumption to improve energy efficiency, to promote energy-saving technology, to use scientific and technological innovation, and to enhance residents awareness of energy saving.