Application of Vector Auto Regression Model for Evaluate China’s low-carbon Economic Growth

With the rapid development of China’s economy, coal-based energy consumption has increased dramatically. However, China's current energy economic efficiency is still at the lower stage; how to improve the energy efficiency has became the most important policy concerns. In this paper, we first put forward a Low-carbon economy growth model and proved that technological innovation is the main factor to achieve the low-carbon economy growth, then we make a VAR model by using China's financial development and energy efficiency data from 1990-2010, test results show that the financial development will promote energy efficiency. The Granger causality test shows that financial development and the energy efficiency has obvious causality.