Measuring Regional Green Finance Development Level in China

Green finance, defined as supporting the development of green and low-carbon projects, serves as a mechanism for tackling resource shortages and environmental damage caused by Chinese economic reform and opening up. The reason for studying Chinese green finance development path by region is that each region has different economic development policies, investment in education and environment, and investment in scientific and technological innovation. This article employed the entropy method and DEA-Malmquist model to measure the efficiency of Chinese green finance development. The entropy method assigned values to each green financial development efficiency evaluation indicator and determined the weight. Then the DEA-Malmquist method was conducted to calculate the weight of each indicator to measure the dynamic development scale and efficiency. Based on the above research results, three policy recommendations are put forward to improve economic development, enhance innovation capabilities, and improve the green financial system.