The Impact of Financial Development on Energy Consumption in China: Based on SYS-GMM Estimation

Shao Jun Xu

doi:10.4028/www.scientific.net/AMR.524-527.2977

Paper Titles

Productivity Decrease as a Result of its Incorrect Perceptions and Superficial Attitudes
p.2954

Research on China's Energy Demand Forecasting Based on Grey System Theory
p.2958

Research on Comprehensive Evaluation Method of Enterprise Energy Efficiency
p.2962

Resource Industry Operation Study: Cooperation, Constraint and Sustainability
p.2971

The Impact of Financial Development on Energy Consumption in China: Based on SYS-GMM Estimation
p.2977

Human Factors Reconcile Mechanism and Risk Management Research for Natural Gas and Liquefied Petroleum Gas Distribution Station
p.2982

A Study on the System and Mechanism of Ecological Compensation for Coal Mining Areas：Based on the Theory of Complex System
p.2987

Analysis of Government Regulation on China's Energy Management
p.2992

Analysis of Supply-Demand of Coal Resources in Jinan City
p.2996

HomeAdvanced Materials ResearchAdvanced Materials Research Vols. 524-527The Impact of Financial Development on Energy...

The Impact of Financial Development on Energy Consumption in China: Based on SYS-GMM Estimation

Abstract:

In this study we use system GMM estimation techniques to examine the dynamic effect of financial development on energy consumption with a panel data set on 29 provinces during the period 1999-2009 in China. The empirical results show a positive and statistically significant relationship between financial development and energy consumption when financial development is measured by the ratio of loans in financial institution to GDP and by the ratio of FDI to GDP. These results have critical implications for energy policy where the impact of financial development on energy consumption, especially, the short effect from the development of bank loan scale and the long effect from the development of FDI, is important to improve the political effect.