The research on the influence of capital deepening on energy efficiency

• 1、College of Finance and Statistics，Hunan University

Abstract：With the growing demand of global energy and the increasingly serious environment problem, energy problem has become the focus of world attention. As the world's largest energy consuming country, the increasingly prominent contradictions in China between energy supplement and demand have become a stumbling block to the sustainable development of economy and society. China is experiencing accelerated process of capital formation, i.e. capital deepening process.Actually, capital deepening has a profound impact on energy efficiency.This paper divides capital deepening into moderate capital deepening and excessive capital deepening.It measures the capital deepening and energy efficiency of our different province, and carries on empirical test of the relationship between capital deepening and energy efficiency based on the non-dynamic panel threshold model. The empirical results show that appropriate capital deepening has obvious effect on promoting energy efficiency, and excessive capital deepening can suppress the energy efficiency, energy efficiency and capital deepening show an inverted U-shaped relationship.Therefore,we should adjust capital deepening structure, convert capital deepening way and control capital deepening degree to improve energy efficiency.

Keywords： Finance Moderate Capital Deepening Excessive Capital Deepening Energy Efficiency；Panel Threshold Model