Research On The Impact Of Financial Development On Energy Consumption In China

Since the reform and opening up,China’s economy and social finance have been in a state of vigorous development,construction in various areas has also made substantial progress.But we must not lose sight of the fact that high economic and financial growth is,for the most part,irrational and an extensive approach to development.High growth is accompanied by high pollution,high energy consumption and high emissions,and the large consumption of energy has many adverse effects on the ecological environment in which we live,such as air pollution,desertification,serious soil erosion and the destruction of ecological diversity and so on.Especially in recent years,the eco-environmental problem is getting worse gradually,and energy consumption is one of the main reasons.China is the world’s largest energy producer and energy consumer,the demand for energy as a factor of production and the amount of emissions are very large,and because China’s energy resources have shown more coal,less oil and less gas,consumption has also been dominated by coal,consumption structure is not optimistic,China’s energy-saving emission reduction pressure.Therefore,in this context,the development of green economy,promote sustainable energy development,energy conservation and emission reduction,building a two-oriented society of great significance.Finance is the core of modern economic development and plays an important role in supporting all aspects of economy and society.Therefore,when finance promotes economic growth,the energy consumption of a country or a region will also be affected.Therefore,the research on the relationship between financial development and energy consumption is of great significance in promoting the development of green finance and green economy,and also plays an important role in the process of exploring the feasible path to promote the sustainable development of economyThis paper first analyzes the theoretical basis and transmission mechanism of the two,and expounds their current development status to support the following empirical research,and then based on China’s 2004-2017 provincial panel data,the threshold model is used to study the nonlinear relationship between them under different economic growth levels,and the empirical test is carried out in the east,middle and West Regions.The empirical conclusions of this paper are as follows: First,the threshold effect of financial development on energy consumption is significant.From the test of regional threshold significance,the effect between middle and East regions is double threshold effect,while the effect in West region is single threshold effect.Second,in the whole sample,the relationship shape of financial development to energy consumption is u-shaped,which shows that when the economy is growing,financial development shows the role of energy consumption is weakened and then enhanced.In the subregional sample,the financial development in the eastern region has a significant effect of weakening first and then strengthening,and the central region has a negative effect on the economic growth.Under the different economic growth level,the influence of the two is positive,but the degree of the positive is decreasing.Finally,the paper puts forward the corresponding policy recommendations from five aspects: promoting the construction of green financial system,perfecting green financial infrastructure,reforming the credit mechanism of banking industry,formulating different regional development strategies and other policy recommendations.The government should fully combine green finance with economic development when making energy and economic development policy,promote green and sustainable development of economy,and promote the realization of energy saving and emission reduction.At the same time,the most important thing is that because of the existence of regional Heterogeneity,the financial development situation of different regions should be taken into account when formulating regional development policies,and the focus of policies should be adapted to local conditions,we will gradually achieve the goals of improving energy efficiency and upgrading the energy mix,and promote the building of a two-oriented society.