The demand for energy consumption requires efficient financial development in terms of bank credit. Therefore, this study
examines the nexus between Financial Development, Economic Growth, Energy Prices and Energy Consumption in India, utilizing
Vector Error Correction Model (VECM) technique to determine the nature of short and long term relationships from 2010 to 2019.
The estimation of results indicates that a one percent increase in bank credits to private sector results in 0.10 percent increase in
energy consumption and 0.28 percent increase in energy consumption responses to 1 percent increase in economic growth. It is also
observed that the impact of energy price proxied by consumer price index is statistically significant with a negative sign indicating
the consistency with the theory.
