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Financial Development and Energy Consumption: Evidence from Germany

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  • Valeriia Denisova

    (Department of Financial Markets and Banks, Financial University Under the Government of the Russian Federation, Moscow, Russia.)

Abstract

This paper investigates the influence of several variables of financial development on electricity consumption in case of Germany. We assume that financial market development, economic growth and urbanization lead to an increase in energy consumption. The hypothesis is tested on example of Germany for the period 1990 2018. The results partly confirm the hypothesis. We found that economic growth and urbanization positively affect the energy consumption, while financial market development does not show statistical significance.

Suggested Citation

  • Valeriia Denisova, 2020. "Financial Development and Energy Consumption: Evidence from Germany," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 35-39.
    • Handle: RePEc:eco:journ2:2020-02-5
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    References listed on IDEAS

    as
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    Cited by:

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    2. Dimnwobi, Stephen Kelechi & Madichie, Chekwube V. & Ekesiobi, Chukwunonso & Asongu, Simplice A., 2022. "Financial development and renewable energy consumption in Nigeria," Renewable Energy, Elsevier, vol. 192(C), pages 668-677.
    3. Kwadwo Boateng Prempeh, 2023. "The impact of financial development on renewable energy consumption: new insights from Ghana," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    4. Bonga-Bonga, Lumengo & Kirsten, Frederich, 2024. "Renewable energy generation and financial market dynamics in Europe: a disaggregated approach," MPRA Paper 122461, University Library of Munich, Germany.
    5. Gamze Sart & Mehmet Hilmi Ozkaya & Yilmaz Bayar, 2022. "Education, Financial Development, and Primary Energy Consumption: An Empirical Analysis for BRICS Economies," Sustainability, MDPI, vol. 14(12), pages 1-14, June.
    6. Xie, Qichang & Bai, Dingchuan & Cong, Xiaoping, 2022. "Modeling the dynamic influences of economic growth and financial development on energy consumption in emerging economies: Insights from dynamic nonlinear approaches," Energy Economics, Elsevier, vol. 116(C).
    7. Chiu, Yi-Bin & Lee, Chien-Chiang, 2020. "Effects of financial development on energy consumption: The role of country risks," Energy Economics, Elsevier, vol. 90(C).
    8. Shahbaz, Muhammad & Topcu, Betül Altay & Sarıgül, Sevgi Sümerli & Vo, Xuan Vinh, 2021. "The effect of financial development on renewable energy demand: The case of developing countries," Renewable Energy, Elsevier, vol. 178(C), pages 1370-1380.
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    More about this item

    Keywords

    Financial Market; Energy Consumption; Urbanization; Economic Growth;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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