The effect of financial development on energy consumption: An application on OECD countries

The purpose of this study is to analyse the effect of financial development on energy consumption. In this context, the data of OECD countries between 2003 and 2015 are included in the analysis. In the study, energy consumption dependent variable (kg per capita), foreign direct investments, market value of domestic companies, traded shares, total market value of share dealings of domestic shares, inflation, local loans which are provided to the private sector by the banks and GNP per capita have been identified as the independent variables. In the study, panel-data analysis and generalized method of moments (GMM) have been used. As a result of the study, it was revealed that financial development and energy consumption had a statistically significant relationship.