Abstract: This article empirically examines the effect and path of marketization on green total factor productivity based on 30 provincial panel data in China from 2005 to 2017. Studies have shown that marketization has a significant role in promoting green total factor productivity, and marketization has improved the level of green total factor productivity by significantly improving the role of labor market factor distortion and capital market factor distortion. The test results of geographic location heterogeneity show that marketization promotes green total factor productivity with significant geographic location heterogeneity. In order to overcome the endogenous problem of marketization, based on the incident of approval policy for the establishment of the Free Trade Pilot Zone in 2015, the Differences-In-Differences (DID) was used to analyze the robustness of marketization on green total factor productivity. Studies have shown that marketization has a robust role in promoting green total factor productivity.