Research on Causality Relationship of Low-Carbon Development and Industrial Structure

Abstract This paper analyzed the process of the LCD and the industrial structure in the typical countries to reveal the Causality Relationship between LCD and Industrial Structure. First, most of the developed countries industry have experienced the high-carbon period. When the economy evolved to a certain extent, the base level of the LCD increased. And In developing countries, especially in China, the tertiary industry shared a much smaller part in the whole economy system comparing with that of the developed countries. Then, Based on the output of regression analysis, the appreciable correlation between the LCD and the industrial structure was found. Finally, the results of Granger causality tests lead to the conclusion that the tertiary industry of China is the Granger cause of the LCD within 98 percent confidence intervals. It suggests that the industry structure should be adjusted before the LCD, especially the development of tertiary industry.