The reduce of energy consumption intensity: Does the development of science and technology finance matter? Evidence from China

Abstract

The paper aims to study the impact of the development of science and technology finance (STF) on energy consumption intensity (ECI) in 30 Chinese provinces, based on Chinese provincial panel data from 2012 to 2019. The ECI and the level of STF development index are calculated using the entropy weight method. Then, the interrelationship between them is studied using the coupling coordination degree (CCD) model. Finally, a variety of spatial econometric models as well as geographically and temporally weighted regression (GTWR) models are constructed for empirical testing by combining five indicators, including industrial structure. The results show that the development level of STF in China is characterized by a high level in the eastern and a low level in the central and western, while the distribution of ECI is basically reversed. The development of STF is to a certain extent conducive to reducing ECI, and there is spatial heterogeneity in the relationship between them. Factors such as industrial structure, opening up level, and urbanization level also have a significant impact on ECI. Therefore, this paper proposes that China should continuously improve the policies related to the development of STF, encourage science and technology innovation, and guide the industrial structure to rationalization and supererogation, to reduce the ECI.

Keywords

• Science and technology finance
• Energy consumption intensity
• SEM
• GTWR