Abstract: Energy consumption has complex relationships with economic growth, urbanization, industrialization and fixed assets investment (FAI) in different regions and different development stages. We demonstrated the above causal relationships with the co-integration test and Granger causality test, and then analyzed the dynamic process during 1978-2010. The conclusions are as follows: since the opening and reform, the energy consumption has kept a long and stable relationships with industrialization, urbanization, economic growth and FAI in Xinjiang; there is a Granger causality relationship between energy consumption and industrialization but not between energy consumption and urbanization while economic growth and FAI have a one-way Granger causality relationship with the energy consumption; Whenever the industrialization index increases by 1%, it will lead to a 0.565% increase of energy consumption. If the energy consumption increases by 1%, the industrialization index will increase by 0.209%. When economic growth and FAI increase by 1%, energy consumption will increase by 0.848% and 0.571% respectively. At the moment, the energy resources are the favorable conditions for industrialization, the economic development and the fixed assets investment in Xinjiang. It is a fundamental proposition on how to ensure the stable and sustainable local energy supply and effective energy utilization, which related to the long-term stable regional economic development in Xinjiang.

Key words: energy consumption, industrialization, economic growth, regional development, Xinjiang