A Study Of The Impact On Energy Consumption By The Concurrence And Coordination Between Financial Deepening And Capital Deepening

In recent years, the rapid development of China’s economy has given rise tofurther demands of energy consumption. At the same time, the energy resourcesendowment of China is not satisfying, the global stock of traditional energy isdraining and the process of new energy development is slow. In terms of energysecurity, studying the effect of macroeconomic variables on energy consumption haspractical significance. The coexistence of financial deepening and capital deepening inChina has been long, which is called “double deepening”, can not only have directand indirect impact on energy consumption separately, but also affect thedevelopment of energy consumption by their concurrence and coordination power.Since the accession to the WTO, the constantly change of double deepening has newimpact on energy consumption. Therefore, it is necessary to study the currentrelationship between double deepening and energy consumption.There has been some exploration about the relationship between financialdeepening or capital deepening and energy consumption. However, there is also someclose relationship between financial deepening and capital deepening, and this kind ofrelationship may have some extra effect on energy consumption. In order to discussthe extra effect and try to cooperate double deepening with each other to improve theenergy consumption status, a study which make double deepening linked with energyconsumption at the same time is necessary. By referring the predecessors’ researchand the characteristics of double deepening in China, this paper illustrates themechanism of double deepening on energy consumption, selects quantitativeindicators to describe double deepening, builds panel data models to test therelationship between double deepening and energy consumption, and accordinglyprovides policy suggestions to promote double deepening and energy consumptionworks in order.This paper firstly outlines the concept of double deepening and energyconsumption, illustrates the relevant theoretical basis, then describes the presentsituation about double deepening and energy consumption, summarizes the effectpathway of both financial deepening and capital deepening to energy consumption, and then innovatively illustrates the effect of the concurrence and coordination ofdouble deepening on energy consumption.On the basis of the theory, this paper collects statistic data of China’s provincialadministrative regions during the period of2001to2012, chooses scale of financialactivities, financial business efficiency, financial openness and contribution tostability to measure the degree of provincial financial deepening by using entropy-TOPSIS method. This paper uses capital increase of per labor to measure the dynamicchange of capital deepening, purposes the concept of coordination degree of doubledeepening and measures the degree using coupling coordination degree method.On the basis of index calculation, energy consuming efficiency and energyconsuming quantity are used as explained variables. Financial deepening, capitaldeepening, and double deepening which can be measured by its concurrence andcoordination degree, are used as explaining variables. Then their relationships aremeasured by the model of panel data. The empirical results show that: In terms ofenergy consuming efficiency, financial deepening and high double deepeningcoordination degree promote the growth of energy consuming efficiency. In terms ofenergy consuming quantity, financial deepening and capital deepening promote thegrowth of energy consuming quantity, on the contrary, the concurrence of doubledeepening promotes the reduce. There is also an Inverted U-shaped Curve effectbetween financial deepening and energy consuming quantity. In terms of regionalcomparison, areas with higher per capita output show more obvious relationshipbetween double deepening and energy consumption.By combining the theoretical analysis and empirical results, we believe that thecoordinating task of double deepening and energy consumption should pay attentionto the balance between financial deepening scale and efficiency, the capital deepeningallocation between regions and industries, and the smooth and harmonization ofdouble deepening mechanism.