Spatial Effects and Nonlinear Analysis of Energy Consumption, Financial Development, and Economic Growth in China

Huan Zhou, Shaojian Qu, Qinglu Yuan and Shilei Wang
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Huan Zhou: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Shaojian Qu: Business School, University of Shanghai for Science and Technology, Shanghai 200093, China
Qinglu Yuan: Institute of Disaster of Prevention, Beijing 101601, China
Shilei Wang: Business School, Zhengzhou University of Aeronautics, Zhengzhou 450000, China

Energies, 2020, vol. 13, issue 18, 1-18

Abstract: Energy consumption is of great significance to the sustainable development of the economy. Due to the spatial heterogeneity of low-carbon growth in regional economies, the relationship between energy consumption and economic growth is complicated. However, a few researches have been published about spatial spillover effects and non-linearity of energy consumption and financial development on regional economic growth in China. Based on the panel data of 30 provinces in China from 2007 to 2017, this paper analyzes the spatial spillover effects and threshold effects of energy consumption and financial development on regional economic growth by using spatial and nonlinear econometric methods. The main conclusions are as follows. Spatial econometric methods show that financial development and energy consumption are two factors of production input to promote China’s economic growth. Meanwhile, energy consumption and financial development have spillover effects on regional economic growth. Additionally, the nonlinear econometric method finds that with increasing financial development, the impact of energy consumption on economic growth is segmented. Therefore, relevant policies should be implemented to enhance the role of finance in energy consumption to promote low-carbon growth of China’s economy.

Keywords: energy consumption; financial development; sustainable development; nonlinear econometric method; spatial econometric method (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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