Research on the Degree of Factor Misallocation and Optimization Strategies in the Process of Green, Low-Carbon, and High-Quality Development: An Empirical Analysis Based on Shandong Province

Purpose – This paper aims to analyze the misallocation of land, energy, capital, and human resources in Shandong, measure its imbalance at inter-provincial, intra-provincial, and industrial levels, identify causes, and propose optimization strategies. It seeks to support Shandong’s green, low-carbon, high-quality development under “dual carbon” goals. Design/Methodology/Approach – Using 2019-2023 panel data on Shandong, the study constructs a factor misallocation index model, a three-dimensional analysis framework (“inter-provincial - prefectural - industrial”), and a green development evaluation system. It uses a benchmark regression model, robustness tests, and heterogeneity analyses. Findings – Shandong has severe factor misallocation: low land efficiency, coal-dominated energy, insufficient green finance, and uneven talent distribution, lagging behind Jiangsu and Zhejiang. It shows “east-strong, west-weak” regional gaps, and mismatches between green and high-energy industries. All four factor misallocations harm green development (land and energy most), especially in western areas and high-energy industries. Distorted prices, rigid energy structures, and talent barriers are the main causes; industrial upgrading and market reform can alleviate this. Research Implications – Governments should optimize land/energy allocation, expand green finance, balance talent distribution, deepen market reform, and strengthen regional coordination to boost Shandong’s green transformation.