You can use the natbib package of LaTex. This package supports various citation formats (e.g., author-year and numerical citations). It also allows you to adjust the space between references.
To reduce line spacing in bibliography, simply put the following lines in the preamble of your LaTex document. This will shrink the line spacing in bibliography to 0pt.
Note that using the natbib package may change your citation format.
In that case, you can define the citation format explicitly using natbib options as follows. This will produce citations with square bracket, sorted, and comma-separated styles.
If you encounter "Package natbib Error: Bibliography not compatible with author-year citations" message, add "numbers" option to get around that.
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