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

Author

Listed:
  • Zhou, Weizhong
  • Liu, Chunlu
  • Zhou, Yu
  • Li, Qihui
  • Wang, Yuanhua

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.

Suggested Citation

  • Zhou, Weizhong & Liu, Chunlu & Zhou, Yu & Li, Qihui & Wang, Yuanhua, 2025. "The influence of environmental policy on green total factor productivity in the Chinese construction industry," LSE Research Online Documents on Economics 129092, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:129092
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    File URL: https://researchonline.lse.ac.uk/id/eprint/129092/
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    References listed on IDEAS

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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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