Using Statistical Methods to Study the Mechanisms of Environmental Regulation and Energy Consumption on Economic Development: Based on the Provincial Panel Data of China

Abstract

The issue of environmental regulation and energy consumption in China, which is developing rapidly today, has gained the attention of many scholars. In this regard, this paper analyzed the relationship between environmental regulation and energy consumption, and economic development in China using panel data of 30 provincial-level administrative regions across China from 2001 to 2019. Unlike previous studies, this paper uses statistical methods to consider the effects of both environmental regulation and energy consumption on economic development. In the empirical study, the data were analyzed by the mediation model and the threshold effect model. The statistical results show that environmental regulation has a significant positive effect on economic growth, and energy consumption has a non-linear relationship on economic growth. Based on this, the paper mainly proposed three measures. First, the indicators of urban ecological construction should be closely related to economic indicators. Second, it is needed to strengthen the management of sewage discharge. Third, rational planning of energy allocation and promotion of clean energy are required to effectively achieve green and sustainable economic and social development.