Analysis of Green Finance Promotion Barriers in Underdeveloped Areas - Evidence from System Engineering

Abstract

As a hot topic in the world, the promotion of green finance in underdeveloped regions has many obstacles with complex levels and different attributes. This paper combined relevant surveys and expert opinions to determine the barriers to the promotion of green finance in underdeveloped areas, used the ISM (Interpretative Structural Modeling) to sort out the hierarchical structure and action paths of the factors, and applied MICMAC (Matriced Impacts Corises-multiplcation Appliance Classement) to determine the key focus objects. The research results show that: the system of obstacles to the promotion of green finance in underdeveloped areas consists of 15 factors, which can be divided into three levels: the surface layer, the intermediate layer and the bottom layer. Among them, low policy effectiveness, low utilization rate of advantageous resources, single green financial products and services, lack of professional talents, and frail resultant force of ecological poverty have strong dependence and low driving force. The solutions to these factors depend on other factors’ solution. Insufficient government guidance, incomplete construction of information sharing platform, and unbalanced development of productivity have relatively high driving forces, which are the most fundamental hindering factors and should be focused on.