Research On The Relationship Between Financial Development And Energy Consumption In China

Financial development can increase the activity of financial institutions to expand investment and improve the market structure on the micro level to promote economic growth,energy consumption in the promotion of rapid economic growth will also lead to carbon emissions and other environmental pollution problems,this closely related to our ability to implement sustainable development strategy for economic growth,and financial development to promote the level of social total output that affects economic growth through the conduction mechanism of energy consumption.From the theoretical point of view,the financial development in the production process to reduce the cost of financing and promoting technological progress,to improve energy efficiency,thereby reducing the total energy consumption;however,the credit in the financial development in the process of expansion and development and energy consumption in the process of a rebound effect,and may result the total energy consumption increases,so the impact of financial development on energy consumption could be reflected in two opposite directions,therefore,the relationship between financial development and energy consumption in China needs to be further discussed.Based on this paper of domestic and international financial development and economic growth,energy consumption and economic growth,financial development and energy consumption of these three aspects of related research summary,review and comment of combing,also analyzes the current situation of financial development and energy consumption in China.Study on the theory and the present situation of the perception based on the basis of China's reform and opening up the 1978-2014 time series data to establish ARDL-ECM empirical analysis,found that the cointegration relationship exists between financial development and energy consumption,economic growth,the population of the four variables,and whether in the long-term or short-term financial development on energy consumption have a positive significant relationship.In addition,this paper also examines the interaction relationship between them,that the relationship between financial development and energy consumption in the long term performance as reciprocal causation,and in the short term financial development is the Granger cause of energy consumption but the energy consumption is not the Granger causes of financial development.The theoretical and empirical analysis of the relationship between financial development and energy consumption has broaden and deepen the understanding of the relationship between financial development and energy consumption in China,and based on this,this paper puts forward the corresponding policy recommendations.