IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/129092.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/129092/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jens J. Krüger, 2001. "The Global Trends of Total Factor Productivity. Evidence from the Nonparametric Malmquist Index Approach," Working Paper Series B 2001-01, Friedrich Schiller University of Jena, School of of Economics and Business Administration.
    2. Jiang, Zhangsheng & Xu, Chenghao, 2023. "Policy incentives, government subsidies, and technological innovation in new energy vehicle enterprises: Evidence from China," Energy Policy, Elsevier, vol. 177(C).
    3. Joseph S. Shapiro & Reed Walker, 2018. "Why Is Pollution from US Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade," American Economic Review, American Economic Association, vol. 108(12), pages 3814-3854, December.
    4. Hina Marvi & Saima Kalwar & Mir Aftab Hussain Talpur & Irfan Ahmed Memon & Mehnaz Soomro & Noman Ahsan, 2024. "Cultivating Community: Addressing Social Sustainability in Rapidly Urbanizing Hyderabad City, Pakistan," Societies, MDPI, vol. 14(9), pages 1-27, August.
    5. Hong Yu & Jianmin Zhang & Ning Xu, 2023. "Does National Independent Innovation Demonstration Zone Construction Help Improve Urban Green Total Factor Productivity? A Policy Assessment from China," Sustainability, MDPI, vol. 15(9), pages 1-16, April.
    6. Nihal Ahmed & Zeeshan Hamid & Farhan Mahboob & Khalil Ur Rehman & Muhammad Sibt e Ali & Piotr Senkus & Aneta Wysokińska-Senkus & Paweł Siemiński & Adam Skrzypek, 2022. "Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach," Agriculture, MDPI, vol. 12(9), pages 1-17, August.
    7. Yang, Xiangyang & Li, Zijun & Qiu, Zhaoxuan & Wang, Jinmin & Liu, Bei, 2024. "ESG performance and corporate technology innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    8. Segerson, Kathleen & Miceli, Thomas J., 1998. "Voluntary Environmental Agreements: Good or Bad News for Environmental Protection?," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 109-130, September.
    9. Hongzhong Fan & Shuang Tao & Shujahat Haider Hashmi, 2021. "Does the Construction of a Water Ecological Civilization City Improve Green Total Factor Productivity? Evidence from a Quasi-Natural Experiment in China," IJERPH, MDPI, vol. 18(22), pages 1-19, November.
    10. Li Wang & Hongyu Yang, 2024. "Digital technology innovation and corporate ESG performance: evidence from China," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-32, December.
    11. Yang, Su & Shen, Jie & Deng, Xiaopeng & Lu, Kun & Liu, Zeru & Cheng, Baoquan, 2024. "Digital economy revolutionizing green total factor productivity in construction industry," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jin, Shaorong & Xiong, Ruoyu & Peng, Huan & Tang, Shiyu, 2025. "ESG performance and private enterprise resilience: Evidence from Chinese financial markets," International Review of Financial Analysis, Elsevier, vol. 98(C).
    2. Cuicui Huang, 2025. "Digital transformation and corporate ESG performance: Research based on a capability-motivation dual framework," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-27, June.
    3. Wen, Bohui & You, Wei & Yuan, Ming, 2025. "The Impact of commercial banks' ESG performance: Difference between provocative and passive risk-taking – Evidence from China," Research in International Business and Finance, Elsevier, vol. 76(C).
    4. Xuejia Zheng & Lei Zhuang, 2025. "The Impact of Environmental Protection Tax on Green Behaviors and ESG Performance of Industrial Enterprises," Sustainability, MDPI, vol. 17(19), pages 1-18, September.
    5. Yuan Li & Yongchun Huang & Yupeng Zhao & Zi Ye, 2025. "The Impact of Corporate Environmental, Social, and Governance Performance on Total Factor Productivity: An Analysis of the Moderating Effect of Environmental Uncertainty," Sustainability, MDPI, vol. 17(19), pages 1-24, September.
    6. Shen, Ling & Yang, Xiaozhong & Ma, Guangcheng, 2025. "Can companies’ participation in ESG ratings improve green innovation efficiency? Evidence from Chinese A-share listed companies," Finance Research Letters, Elsevier, vol. 78(C).
    7. Fu, Tong & Qiu, Zhaoxuan & Yang, Xiangyang & Li, Zijun, 2024. "The impact of artificial intelligence on green technology cycles in China," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    8. Shang, Yuping & Xiao, Zisheng & Nasim, Asma & Zhao, Xin, 2025. "Influence of ESG on corporate debt default risk: An analysis of the dual risk scenarios," Journal of International Money and Finance, Elsevier, vol. 151(C).
    9. Zhou, Jing & Wu, Kaiwen & Li, Youwei, 2025. "Does firm internationalization improve ESG performance? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 101(C).
    10. Li, Puying & Li, Xinna & Wu, Qiang, 2025. "Digitalization drives Sustainability: How digital trade enhances corporate ESG performance through innovation, internationalization and transparency," International Review of Economics & Finance, Elsevier, vol. 101(C).
    11. Wang, Meixia & Liu, Li & Liang, Tongxin, 2025. "Does the ESG disclosure quality affect financial performance: Empirical evidence from Chinese energy-listed companies," Finance Research Letters, Elsevier, vol. 77(C).
    12. Anzhu Xue & Guang Yang & Hui Wang, 2025. "The Impact of Environmental, Social, and Governance (ESG) on the Green Development of Listed Companies in China’s Agricultural and Forestry Industries," Sustainability, MDPI, vol. 17(10), pages 1-26, May.
    13. Gao, Xiang & He, Xixi & Sun, Chuanwang & Wu, Dongmei & Zhang, Jie, 2025. "Innovation in shouldering green responsibility: ESG performance and green technology innovation," Energy Economics, Elsevier, vol. 142(C).
    14. Yichun Zhang & Xinyi Zhang, 2025. "Analysis of the Influence Mechanism of Digital Transformation on the New Quality Productivity of Enterprises --The Mediating Role of Financing Constraints and ESG Ratings," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 17(2), pages 1-15, February.
    15. Lei, Xiao & Tu, Qin, 2025. "ESG performance and innovation in listed manufacturing companies–A prospect theory perspective," Finance Research Letters, Elsevier, vol. 72(C).
    16. Yu Sang & Kannan Loganathan & Priya Sukirthanandan, 2025. "A Study on the Impact of Corporate Digital Transformation on Environmental, Social, and Governance (ESG) Performance: Mechanism Analysis Based on Resource Allocation Efficiency and Technological Gap," Sustainability, MDPI, vol. 17(8), pages 1-31, April.
    17. Jiang, Lisha & Zhou, Wei & Hualiang, Wu & Deng, Wei, 2025. "Impact of business environment uncertainty on ESG performance from the perspective of resource supply and demand based on ESG performance," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 1012-1030.
    18. Liu, Bei & Chen, Ziyi & Wang, Ying & Sun, Xiaolong, 2025. "Fintech empowers enterprises to practice ESG: The role of political background of executives," Energy Economics, Elsevier, vol. 142(C).
    19. Yang, Haiyan & Tang, Feier & Hu, Fang & Yao, Daifei, 2025. "Corporate ESG performance and abnormal cash dividends," International Review of Financial Analysis, Elsevier, vol. 102(C).
    20. Meng, Chenyu & Lin, Yongsheng, 2025. "The impact of supply chain digitization on the carbon emissions of listed companies—A quasi-natural experiment in China," Structural Change and Economic Dynamics, Elsevier, vol. 73(C), pages 392-406.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:129092. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.