Economics at your fingertips  

How does financial development affect energy consumption? Evidence from 21 transitional countries

Shujing Yue, Rou Lu, Yongchang Shen and Hongtao Chen

Energy Policy, 2019, vol. 130, issue C, 253-262

Abstract: Financial development significantly impacts energy consumption. This paper uses cross-country panel data from 21 transitional countries for the period 2006–2015 while considering different financial development indicators and nonlinear relationships between financial development and energy consumption. This is done by selecting five financial development indicators to measure financial development and testing linear and nonlinear relationships between financial development and energy consumption. It found the following: First, there are no significant linear relationships between financial development and energy consumption. Financial development does have significant nonlinear impacts on energy consumption in transitional countries with estimated nonlinear parameters that are significant. Second, financial development affects energy consumption in transitional countries in differing ways. Financial intermediation development positively affected energy consumption in all the countries studied. Stock markets development led decreased energy consumption in China and Poland. Financial openness development reduced energy use except in Georgia and the Kygyz Republic.

Keywords: Financial development; Energy consumption; Transitional countries; Panel smooth transition regression (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.enpol.2019.03.029

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Haili He ().

Page updated 2020-07-03
Handle: RePEc:eee:enepol:v:130:y:2019:i:c:p:253-262