Empirical Analysis of Factors Influencing the Development of Green Economy in Zhejiang Province

In the background of global warming and energy consumption, the development of green economy in Zhejiang Province has significant importance. The paper uses data from Zhejiang Provincial Statistical Yearbook between 2007 and 2022. This paper selects 11 social and environmental indicators and then applies the entropy weight method to establish a multi-indicator measurement framework of the green economy in Zhejiang Province. Initially, a multivariate linear regression model is constructed by using the ordinary least squares (OLS) method. However, due to the multicollinearity inherent in the OLS method, ridge regression is subsequently adopted to address the multicollinearity and optimize the model. The model reveals that innovation level, openness to the world and the development of economy has a significant positive impact on the development of Zhejiangs green economy, while the industrial structure has a constraining effect. Based on above conclusions derived by ridge regression, the paper offers relevant recommendations for making policies.