In this paper, the relationship between economic growth and energy consumption in Inner Mongolia is analyzed by using 1997-2007 GDP and total energy consumption data of Inner Mongolia Autonomous Region and by constructing cointegration equation, error correction model and Granger causality relation. The results show that there exists cointegration relationship between economic growth rate and energy consumption rate of Inner Mongolia, and exists unidirectional causality from energy consumption rate to economic growth rate. Therefore, the government should be careful in formulating energy and environmental policies so as to avoid adverse effects on economic, growth.