The Relationship Between Energy Companies’ Profit And Economic Growth With The Environmental Constraint

Chinese economy has maintained high-speed economic growth for severaldecades. However, the consequent problems such as energy issue and environmentissue have emerged day by day. China’s wing-footed economic development, which isunderlined by high energy consumption and serious environmental pollution, canhardly sustain. In the near future, China is bound to encounter the bottleneck ofdevelopment in light of the constraints of energy and environment. Then, energystructure in China has no choice but to be adjusted. Hydroenergy，wind power andother renewable resources will take the place of conventional fossil energy, such ascoal and petroleum. Therefore, energy problem is the fatal factor in the developingprocess of China. The profit level of energy companies in china are confronted withviolent fluctuation under this macro-background.The main driven factors of profit of energy enterprises are researched in thispaper, which contains economic development, energy consumption, money supplyand environmental pollution. This paper processes an empirical analysis about theprofit of energy companies, and many econometric models are utilized in the analyzeprocess, such as ordinary least square, instrument variable and so on. The researchresults show that, companies’ profit is directly affected by energy consumption andmoney supply. Economic growth, constraints of pollution emission, environment-protected investment and many other variables influence the profit indirectly. Thismechanism is transmitted by the above-mentioned variablesThis paper also carries out a tentative analysis about the key inducements ofenergy consumption in China, the USA and Japan. In the research procedure, penaldata model is established firstly, and then many analytical methods are applied, suchas pool model, fixed effect model. The study outcomes show that, energyconsumption is chiefly impacted by education and economic advancement. Educationdecrease energy consumption with the help of R&D level. Nevertheless, the currenteducation has little impact on energy consumption. The lagged values of educationaffect energy consumption significantly. Japan and the USA need much less energyconsumption than china when their GDP grow by the same quantity.