The invention relates to a halogen-free environment-friendly material and an application thereof, and in particular, relates to a low-cost and halogen-free environment-friendly heat shrinkable pipe and a preparation method thereof, wherein the halogen-free environment-friendly heat shrinkable pipe comprises the following components by weight: 30-50 parts of an ethylene-vinyl acetate copolymer; 5-20 parts of a polyethylene and/or ethylene-octene copolymer; 50-70 parts of an inorganic filler; 0.5-2 parts of a lubricant; 0.3-1 part of a composite antioxidant; and 0-3 parts of a masterbatch; the influence of a halogen element contained in the heat shrinkable casing pipe on environments and body health is solved, and the heat shrinkable casing pipe has the advantages of simple production, easy industrialization, low cost and the like.