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.
Highlights
Energy consumption is vitally important to the national economy, people’s livelihoods and national security, as well as to the prosperity of a country and the well-being of its people
By trends of economic growth, financial development, and energy consumption, this paper finds that comparing the trends of economic growth, financial development, and energy consumption, this there a certain similarity
The findings indicated that the intensity of energy consumption was relatively low at a higher level of economic development
Summary
Energy consumption is vitally important to the national economy, people’s livelihoods and national security, as well as to the prosperity of a country and the well-being of its people. China has become the largest energy consumer in the world [1]. At the beginning of the founding of the People’s Republic of China, China’s energy base was weak. In the past 70 years, China’s energy industry has undergone tremendous changes. With the rapid development of China’s economy, the overall energy consumption is growing rapidly. During the 11th Five-year Plan period (2006–2010), the target for energy consumption per unit of GDP in 2010 was about 20% lower than that in 2005
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