Abstract: To determine the financial support mechanism in new energy industry development in Inner Mongolia, we set up indicators in financial development and new energy industry development. Through pulse response and variance analysis with the VAR model, we find that the improvement of financial efficiency contribute more to the development of new energy industry than that of financial structure to financial scale; the improvement of financial efficiency can obviously promote the development of new energy industry, and the upgrade of financial structure is less promotive than the improvement of financial efficiency. The development of financial scale can boost the development of new energy industry to a certain extent. Therefore, we should remove the restrictions on new energy enterprises getting loans, establish evaluation system for new energy enterprises, and strengthen the connection between financial institutions and new energy enterprises. Besides, we should upgrade financial structure to promote the development of the stock market, and develop the corporate bond market to help new energy enterprises get direct investment. The governmental guidance mechanism should be proactively implemented, and investments should be put in new energy enterprises with higher innovation capability.

Key words: new energy, VAR model, financial structure, financial efficiency, financial scale