The Development Level of Green Finance in Chengdu-Chongqing Twin-City Economic Circle of China Based on Grey Correlation Model

Abstract

An evaluation index system for the development level of green finance from the five dimensions of green credit, green securities, green insurance, green investment, and carbon finance was constructed. The grey correlation model was used to calculate the grey correlation degree between cities and regions such as Chongqing and Chengdu under each index dimension, and further evaluates the contribution of cities in the Twin Cities Economic Circle of Chengdu-Chongqing Region to the development of regional green finance from the perspective of regional interior. The empirical results show that Chengdu and Chongqing have the highest contribution to the development of regional green investment, Mianyang and Chongqing have the highest contribution to the development of regional green insurance, Chengdu and Mianyang have the highest contribution to the development of regional green credit, Chengdu has the highest contribution to the development of regional green securities, and Chengdu and Chongqing have the highest contribution to the development of regional carbon finance. Overall, Chengdu and Chongqing have played a “dual core” role in the development of green finance in the twin-city economic circle in the Chengdu-Chongqing region. In the future, the Chengdu-Chongqing region should actively promote green investment, continue to develop green insurance, further promote green credit, actively expand the coverage of green securities, improve the construction of carbon trading markets, and further promote the construction of a regional green financial system.