The Impact of China's Financial Development on Energy Consumption -- Based on Panel Threshold Regression Model

This paper investigates the impact of China's financial development on energy consumption by using panel threshold regression model. It is found that the threshold effect does exist in the influence of China's financial development on energy consumption. The role of financial development in promoting energy consumption has regional heterogeneity. And this study demonstrates that when regionally economic development is at a relatively low level, the economic growth mechanism of the credit scale aspect can remarkably boost the energy consumption level. The technological innovation mechanism of credit scale and financial efficiency aspects can both significantly hinder energy consumption. When the regional economic development is at a relatively high level, the technological innovation mechanism also has a significant obstructive effect on the impact of financial development on energy consumption. However, the influence of the economic growth mechanism is not conspicuous.