Evaluation and Empirical Research on Eco-Efficiency of Financial Industry Based on Carbon Footprint in China

Since finance is the core of economic development, the green development of the financial industry is an essential driving force not only for achieving the dual "carbon" goal of China but also for economic and social sustainable development. An accurate understanding of the ecological efficiency of the financial industry is of great importance for guiding sustainable economic development. In this paper, we first calculate the carbon footprint of China's financial industry in 2012 and 2017 based on the life cycle theory and the input-output analysis method. Second, we analyze the primary sources and final flows of the carbon footprint of the financial industry in each province from the perspectives of the industrial chain and final demand. Finally, we estimate the ecological efficiency, emission reduction, and value-added potential of the financial industry by using the radially adjusted slack variable DEA model (SRAM-DEA) under two assumptions, natural disposability and managerial disposability. The results show that (1) the ecological efficiency of the financial industry in most provinces is low, and the regional differences are significant; (2) the overall ecological efficiency of the financial industry in 2017 was better than that in 2012; (3) technological innovation of financial products and the upgrading of capital supervision play an essential role in promoting the improvement of ecological efficiency. Especially, under managerial disposability, the ecological efficiency of the financial industry in each province has a greater potential for emission reduction and added value.