Analysis On The Impact Of Financial Development On China’s Energy Consumption

The Fifth Plenary Session of the 18th Communist Party of China(CPC)Central Committee put forward the concept of green development "In order to insist green development,we must adhere to the basic national policy of resource conservation and environmental protection,adhere to sustainable development,and firmly follow the civilized development path with prosperous development of production,prosperous life and sound ecology.Accelerate the building of a resource-conserving and environment-friendly society,form a new pattern of modernization in the harmonious development of humans and nature.We will promote the construction of beautiful China and make new contributions to global ecological security." Obviously,promoting green development is an inevitable choice to realize sustainable development for China.With the development of economy and society,China is faced with increasing pressure for resource shortage and environmental pollution.It is necessary to respond to the pressure by adhering to green development and strengthening the construction of ecological civilization to ease the constraints of resources and the environment.Under this context,adhering to the concept of green development,and maintaining the sustainable utilization of energy while keeping a medium-to-high level of economic growth is a major development issue in China,Besides promoting economic growth,financial development also exerts a significant influence on a country’s energy consumption,and plays an indispensable role in the development of green economy.Therefore,it’s of great significance to study the impact of financial development on energy consumption and explore the feasible path for financial support for green economy.It is of great significance for China to achieve sustainable development and build a resource-saving and environment-friendly society.Based on the research of scholars,this paper combines the theory and current situation of the impact of financial development on energy consumption,taking into account the non-linear relationship between financial development and energy consumption,and empirically examines the different effects of financial development on energy consumption at different levels of economic growth in China.First,this paper elaborates the theoretical foundation of financial development that influences energy consumption,including the factors that influence energy consumption,the role played by financial development,and the channels through which financial development impacts energy consumption,while also describing status quo of financial development and energy consumption in China.Secondly,considering the nonlinear relationship between financial development and energy consumption,utilizing the panel data of 30 provinces from1997 to 2015 in China,we employ the threshold regression model to analyze the impact of financial development on China’s energy consumption under different economic growth levels,and test the channels through which financial development affects energy consumption.We find that:First,there is a significant threshold effect of financial development on energy consumption.Specifically,there is a significant double-threshold effect of the credit scale on energy consumption,while there is a single threshold effect of the financing scale of the securities market,the degree of competition in the financial industry on energy consumption.Second,with the increase of economic growth level,the credit scale,the degree of financial industry competition and energy consumption exhibit an inverted u-shaped relationship.The financing scale of securities market reduces energy consumption level,while FDI scale has always been positively related to energy consumption.Third,from the perspective of influencing channels,at the medium and high growth levels of credit scale and all growth levels of finance competition degree,economic growth has strengthened the impact of financial development on energy consumption.However,the technological innovation channel does not work.The findings indicate that the government should strengthen the integration of financial policy and energy conservation planning,differentiate policies based to the regional economic development differences,and gradually eliminate the obstacles of converting technology advantages to green development advantages,so as to accelerate the construction of resource-saving and environment-friendly society and make new contributions to global ecological security.