The Empirical Analysis of the Influence Mechanism of Chinese Energy Price and Its Related Industries -Based on the Input-output Model

Energy is essential for human’s production and existence, as the result of which, the fluctuation of energy price is an important factor for economic development. According to four hypotheses, this essay uses input-output model to provide empirical analysis on the influencing mechanism of four energy industries: coal mining and washing industry, petroleum and natural gas industry, petroleum and nuclear fuel processing industry, electric and heating power production and supply industry. Besides, it shows the numerical relationship of price transmission chain. Based on the study, different energy price fluctuations have differing impacts on related industries, and the price of some certain departments may spiral. This essay illustrates crucial factors of energy and its related industries, as well as their transmission mechanism, which provides a new perspective for the government’s macro-modulation on energy and its related industries.