| ASEAN is one of the fastest growing economies in the world.Due to economic growth,the demand for energy has been increasing rapidly.The gap between energy supply and demand has been enlarged in ASEAN countries.Indonesia,Malaysia,the Philippines,Singapore and Thailand are the main economies in ASEAN.These five counties in ASEAN(ASEAN-5 countries)have become the top countries in the world in oil and natural gas consumption.The governments of ASEAN-5 countries are making efforts to optimize energy consumption structure through policies and various measures which aim to reduce pollution and ensure energy security.China and ASEAN-5 are all developing countries.There are a lot of similarities between China and these developing countries in energy consumption structure.The remarkable economic growth of China brought rise in energy demand and decline in energy self-sufficiency.China is facing serious energy security issues.Therefore,studying the impact of financial development on energy consumption structure in ASEAN-5 countries will provide reference for China to make the best choice in energy policies.The paper studies from both theoretical and empirical perspectives on the relationship between financial development and energy consumption structure in ASEAN-5 countries(such as Indonesia,Malaysia,the Philippines,Singapore and Thailand)from 1965 to 2016.Focused on the research problem the changes in the energy consumption structure,this paper elaborated on the evolution of financial development and energy consumption structure,and analyzed the energy supply,energy policy and energy investment and financing in ASEAN-5 countries.The theory of financial development,the theory of energy consumption structure,the relevance theory of financial industry and energy industry,and the theory and methods of energy investment and financing are applied.Based on analysis of the energy supply,energy policy and energy investment and financing of ASEAN-5 countries,the individual fixed effect model was established,and the relationship between the financial development and energy consumption structure of ASEAN-5 countries was analyzed empirically.Two typical countries,such as Singapore which is lack of energy resources and Indonesia which is rich in energy resources,were selected for further analyzes by using the VAR model and ARDL-ECM model.The results show that,with the development of the economy,the energy consumption structure in ASEAN-5 countries has changed,and the proportion of oil consumption is decreasing continuously.Although the proportion of electricity consumption and renewable energy consumption is still low,the prospect of industrial development is broad and bright.Moreover,energy endowment of the ASEAN-5 countries affected the energy consumption structure.Natural gas has been an important alternative energy of oil in the countries with abundant natural gas resources,such as Indonesia,Malaysia and Thailand.Singapore,a country with advanced oil industry but short in energy resource,still takes oil as major energy,and the proportion of oil consumption of it is much higher than other energy resource.In the absence of energy resources,the Philippines once used hydroelectricity as the main substitute for oil.In recent years,the proportion of coal consumption in other four countries except Singapore has increased rapidly.Coal consumption will take the place of natural gas and become the most important energy in these four countries.It may be caused by the strong demand of electricity.The financial development of ASEAN-5 countries has improved the energy consumption structure to a certain extent by reducing the consumption of fossil energy which would cause severe pollution and increasing the consumption of clean energy and renewable energy.FDI has improved the technological level of the energy industry and promoted the low carbon economic growth in ASEAN-5 countries.However,in countries with different level of financial development and openness,the impact of FDI on energy consumption structure is different.There is a greater impact of FDI on energy consumption structure in countries(such as Singapore)with higher level of financial development and openness.Because the developed financial market is conducive to the effective utilization of energy.The domestic credit of the financial sector has promoted the consumption of hydropower and renewable energy.The turnover rate of stock exchange improved the energy consumption structure in the long term.However,the short term impact is unconcluded.Learning lessons from the relationship of financial development and energy consumption structure in ASEAN-5 countries,and taking into account the actual conditions of China,the writer give four recommendations for how to improve energy consumption structure through financial development.It is listed as follows.Firstly,China needs to develop energy policy that optimize energy consumption structure and put it on the agenda.The goals of energy consumption structure in different stages should be identified and put into practice step by step.Secondly,FDI policies should be implemented consistently,as it can increase energy efficiency through FDI technology spillover effect.The Chinese government should encourage the introduction of energy saving and emission reduction foreign-funded enterprises,and strengthen the supervision of FDI.Thirdly,China should take the comparative advantage of energy resources and promote cleaner production in coal industry.Obviously,the energy consumption pattern in China is difficult to change under the constraints of resource endowments in the short term.We should make full use of our energy resources and accelerate the development and application of coal cleaning technology.Last but not least,China should increase cooperation with Indonesia and Malaysia in oil and gas sector,and expand financing channels.Chinese companies should seek funding from Asian Infrastructure Investment Bank and the Silk Road Fund and increase cooperation with Indonesia and Malaysia's energy companies in exploration,mining,sales and so on. |
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