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

Author

Listed:
  • 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
    School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
    The Logistic Institute-Asia Pacific, National University of Singapore, Singapore 117546, Singapore)

  • Qinglu Yuan

    (Institute of Disaster of Prevention, Beijing 101601, China)

  • Shilei Wang

    (Business School, Zhengzhou University of Aeronautics, Zhengzhou 450000, China)

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.

Suggested Citation

  • Huan Zhou & Shaojian Qu & Qinglu Yuan & Shilei Wang, 2020. "Spatial Effects and Nonlinear Analysis of Energy Consumption, Financial Development, and Economic Growth in China," Energies, MDPI, vol. 13(18), pages 1-18, September.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:18:p:4982-:d:417536
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    2. Zhenkai Yang & Mei-Chih Wang & Tsangyao Chang & Wing-Keung Wong & Fangjhy Li, 2022. "Which Factors Determine CO 2 Emissions in China? Trade Openness, Financial Development, Coal Consumption, Economic Growth or Urbanization: Quantile Granger Causality Test," Energies, MDPI, vol. 15(7), pages 1-18, March.
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