The Research In The Effect Of Capital Market On Total Factor Energy Efficiency

Since the reform and opening up, China’s economy has maintained a rapiddevelopment, along with a significant increase in energy consumption. ThoughChina has a large energy reserve, the average reserve is much below the world level.Ensuring energy security has become so important to the Chinese government inthe new century. Therefore, due to decline of conventional energy and slow pace innew energy development, improving energy efficiency has become an importantway to solve the problem of energy crisis.The capital market is the core of modern economy and the effective allocationof resources. It can guide the funding and resources towards areas of highefficiency. In recent years, China’s capital market has experienced rapid growth.With the development of China’s capital market, its fund-raising, resourceallocation and risk diversification capabilities have gradually increased. To acertain extent, the capital market has increased the total factor energy efficiency.Based on the above analysis, this paper combine the analysis of quantitativeand qualitative, theoretical and empirical analysis. It carry a inspect of the effectthe capital market on total factor energy efficiency, has a systematic analysis of theway and mechanism that capital markets conduct on the total factor energyefficiency.Firstly,by sorting out the literature, this paper come up with its topic andresearch method.Secondly, based on the basic functions of the capital marketperspective,this paper has an theoretical analysis of the mechanism that capitalmarkets conduct on the total factor energy efficiency. It comes up with threemechanisms:the technical innovation theory,theory of constraints and marketallocation of resources theory.Then,this paper has a detail elaboration of the abovethree theories.Thirdly,this paper has a systematic analysis on the capital marketsituation of China and the total factor energy efficiency.Fourthly,this paper conductan empirical research,using the panel Tobit model and mediation effects analysismodel.Finally,based on the analysis of the empirical results,this paper gives somepolicy recommendations,such as further improving our capital marketsystem,further promoting the allocation of resources of stock market and furtheroptimizing our capital market discipline.This article reats finance development as factors that affect total factor energy efficiency.This will further enrich the theoretical research method in total factorenergy efficiency research field.By combining mediating effect analysis and panelTobit model,this paper has an systematic analysis on the relationship of capitalmarket and the total factor energy efficiency.This paper is innovative in theory andresearch methods.