Empirical Study About Financial Support For The Development Of New Energy Industry In Guangdong

Guangdong Province is in the forefront of China’s reforming and opening, the pace ofeconomic development in Guangdong Province is in the forefront of the whole country. Butthe traditional resources shortage has become a bottleneck to restrict the sustainabledevelopment in Guangdong’s economy. If we do not develop new supply of energy sources, itwould severely hinder the economic development in Guangdong Province. However, onlyrely solely on market forces can not achieve the rapid and healthy development of new energyindustries. Researching the financial supporting for Guangdong Province new energy industrydevelopment is conducive to the development of new energy in Guangdong Province. And thiswill help guide the financial industry in Guangdong Province to better implement the “GreenCredit” and “Energy Efficiency financing” then towards the development of low carbonfinancial direction.This paper bases on the importance in developing new energy industries in theGuangdong Province, and using the qualitative and quantitative analysis methods. At first,this paper systematically review all the theory of the financial support of the new energyindustry and the development process of new energy industry, and combine the functions ofthe finance, start from the three dimensions of the financial scale, financial structure andfinancial efficiency to dialysis the three-dimensional transmission mechanism of the financialsupporting the new energy industry development. And using the SWOT analysis method tohave a research about the competitive situation of Guangdong’s new energy industry, toanalysis its strengths, weaknesses, opportunities and threat, in order to grasp competitivenessof the new energy industry. In this paper, we use the method of factor analysis to construct acomposite indicator to measure the development of new energy industry. Having an empiricalanalysis about the data of the New Energy Industrial development indicators and financialdevelopment indicators, then study the relationship between the development of new energyindustry and financial supporting.Using factor analysis method to build the new energy industry development indicatorsand to have an empirical test. The full-text summary of the following conclusions, we findthat the financial scale, financial efficiency and technological progress have an important role to promote the development of new energy industries. To further improve the financial scale,financial efficiency and technological progress are able to play a role in supporting andpromoting the rapid development of new energy industry. In addition, to optimize thefinancial structure and increases in per capita stock of fixed capitalis an important way topromote the development of new energy industry.