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Impact of China's stock market development on energy consumption: An empirical analysis

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Listed:
  • Yue-Jun Zhang
  • Jing-Li Fan
  • Hao-Ran Chang

Abstract

To investigate the influence of China's stock market development on energy consumption, the Grey Relational Analysis and Granger causality test approaches are used. Empirical results indicate that, first, the grey relational grade appears relatively high for both stock market scale and efficiency and energy consumption during 1992-2009, with 0.84 and 0.73, respectively. Second, China's stock market scale enlargement becomes an evident driver for energy consumption increase, while the influence of stock market efficiency is insignificant. Finally, energy consumption upsurge caused by stock market scale expansion of Farming, Forestry, Animal Husbandry, Fishery and Construction industries, and stock market efficiency promotion of Electric Power, Gas and Water Production and Supply and Manufacturing industries should be paid close attention.

Suggested Citation

  • Yue-Jun Zhang & Jing-Li Fan & Hao-Ran Chang, 2010. "Impact of China's stock market development on energy consumption: An empirical analysis," CEEP-BIT Working Papers 10, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    • Handle: RePEc:biw:wpaper:10
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    File URL: https://ceep.bit.edu.cn/docs/2026-07/9aa23afa831d4efca0fef9e6cfdd280e.pdf
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    References listed on IDEAS

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    2. Granger, C. W. J., 1988. "Causality, cointegration, and control," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 551-559.
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    4. Sadorsky, Perry, 2010. "The impact of financial development on energy consumption in emerging economies," Energy Policy, Elsevier, vol. 38(5), pages 2528-2535, May.
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    Cited by:

    1. Roubaud, David & Shahbaz, Muhammad, 2018. "Financial Development, Economic Growth, and Electricity Demand: A Sector Analysis of an Emerging Economy," MPRA Paper 87212, University Library of Munich, Germany, revised 06 Jun 2018.

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    Keywords

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    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • G00 - Financial Economics - - General - - - General

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