The Research On The Influence Of Capital Deepening On Energy Efficiency

With the growing demand of global energy and the increasingly serious environment problem, energy problem has caught the attentions from all over the world. As the world's largest energy consuming country, the problem of high energy consumption and low efficiency has become a stumbling block to the sustainable development of economy and society. With the rapid development of urbanization and industrialization, China's capital-labor ratio shows a rising trend. It is experiencing accelerated process of capital formation, i.e. capital deepening process. At the same time, the capital deepening process has a profound impact on the energy efficiency, therefore, the study of the relationship between capital deepening and energy efficiency is of great significance in the current era.In this paper, the methods of quantitative and qualitativ e analysis, theoretical and empirical analysis are used to analyze the ways and mechanism that how the capital deepening affects energy efficiency. Based on summarizing the study of domestic and foreign capital deepening, energy efficiency and capital deepening affecting energy efficiency, it firstly explains the meaning of capital deepening and total factor efficiency, then divides capital deepening into moderate and excessive capital deepening. Moderate capital deepening impacts energy efficiency through technological effect and industrial structure effect, while excessive capital deepening influences energy efficiency through diminishing marginal effect and allocation effect. On the basis, it measures the capital deepening and energy efficiency of different provinces, and carries on empirical test of the relationship between them based on the non-dynamic panel threshold model. The empirical results show that moderate capital deepening has obvious effect on promoting energy efficiency, and excessive capital deepening has negative effect on it, energy efficiency and capital deepening show an inverted U-shaped relationship. Finally, the paper puts forward countermeasures and provides suggestions to improve the level of China's energy efficiency from three aspects of capital deepening structure, capital deepening way and capital deepening degree combing with theoretical and empirical analysis.