Abstract

Shangdong Province is a major energy exporter as well as a green city of economic development. However, amid the rapid development of economy, Shandong province has witnessed the development of some non-economic and green industries, therefore, to fulfill the government’s obligation and to make the industry planning better and to create green environmental industry, it is necessary to study the development function of new energy industry in Shandong under the support of government finance. Energy plays an important role in developing economy and sustaining human life, without which human cannot survive. Nowadays, due to the mass consumptions of energy on earth by humankind, it is urgent for humankind to seek new alternative energy sources and develop environmental protection industry. As one of the key industries supported by the state in recent years, new energy industry, including industries supported by hydropower, wind power, tidal energy and luminous energy, is under rapid development and has become the main driving force to change the enterprise structure and promote the development in Shandong Province. Based on the data of energy developmental level within 20 years from 1993 to 2012 in Shandong Province, this thesis is to build a financial support model suitable for new energy development in Shandong Province by using the basic principle of factor analysis. After unit root test, co-integration test and causality test on the data and analysis, a conclusion that the measurement index between financial efficiency, scale and results are indeed co-integrate and moreover, it gives a major push to the development of new energy industry. Therefore, the major drivers of the development of new energy in China with the financial support can be summarized. This research can provide theoretical basis for the structure of new energy industry in Shandong Province.

Keywords:

Development, energy finance, financial support, new energy industry,

References

Competing interests

The authors have no competing interests.

Open Access Policy

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Copyright

The authors have no competing interests.