The influence of environmental policy on green total factor productivity in the Chinese construction industry

Weizhong Zhou, Chunlu Liu, Yu Zhou, Qihui Li and Yuanhua Wang

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: As an environmental policy, the Action Plan of Atmosphere Pollution Control in Beijing-Tianjin-Hebei and Surrounding Areas in Autumn and Winter (Action Plan of APC) was implemented in 2017, with the goal of achieving the sustainable growth of the regional economy. This study examines the effect of the Action Plan of APC on green total factor productivity (GTFP) in the Chinese construction industry employing a difference-in-differences (DID) approach. The findings indicate the following: Firstly, the environmental policy of the Action Plan of APC has significantly improved the GTFP of the aforementioned areas, and the result is still valid after robustness testing; secondly, the dynamic effect testing reveals that the influence follows an increasing trend over time; thirdly, due to the different degrees of marketization, the influence of the Action Plan of APC on GTFP in Chinese construction industry exhibits notable regional heterogeneity. From the perspectives of both the government and enterprises, this study offers recommendations for promoting the GTFP of China’s construction industry. It also provides a novel framework for assessing the effect of environmental policies on the GTFP of the Chinese construction industry.

Keywords: air pollution; green growth; GTFP; DID model (search for similar items in EconPapers)
JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2025-08-01
New Economics Papers: this item is included in nep-cna, nep-eff, nep-ene and nep-env
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Published in Buildings, 1, August, 2025, 15(15). ISSN: 2075-5309

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