Co-integration Analysis on the Relationship between Methane Energy Development and Economic Growth in the City of Huixian

Based on the statistical data of Huixian from 1992 to 2010, we analyze the long-term and short-term relationship between Huixian's methane energy development and GDP by using co-integration test and error correction model. The empirical results show that there is a long-term equilibrium relationship between methane energy and GDP in me city of Huixlan, and which is the one-way Granger causality of methane and GDP. In conclusion, the paper puts forward some steps about spurring economic growth, methane development and utilization in Huixian.