Development of carbon finance in China based on the hybrid MCDM method

Abstract

As development progresses over time and changes in the environment take place, carbon finance development has become a very interesting research topic for many scholars worldwide. This paper proposes a hybrid MCDM method that combines the distance solutions of the TOPSIS and VIKOR methods. The contribution of this paper combines TOPSIS and VIKOR, incorporating AISM models to obtain the development ranking of Chinese carbon finance pilot cities as related to the Chinese carbon finance development pilot provinces and cities. The conclusion notes that Guangdong and Beijing are the most preferred investment locations for carbon investors. In addition, technological innovation, financial sector development, and an active ETS market can effectively drive the level of local carbon finance. Additionally, the MCDM methodology in this paper provides new ideas in environmental and economic development assessment.