Research On The Effect Of Environmental Regulation On Construction Industry Growth In China

Construction industry is one of the basic industries of national economy. It isthe foundation of other related industry development, and the construction industrygrowth plays an important role of preserving the sustainable and stable developmentof national economy. However, the construction industry is also a high pollutionindustry and high consumption industry. With the rapid development of constructionindustry, all kinds of environmental pollution have inevitably been produced. Alongwith the national environmental protection policy has been improved gradually, theenvironmental regulation intension will bring corresponding influence onconstruction industry growth. In order to realize the “win-win” goal ofenvironmental protection and construction industry growth, this paper deeplyresearches on the effect of environmental regulation on construction industrygrowth based on the environmental regulation theory and economic growth theory.Firstly it analyzes the conduction mechanisms of environmental regulation on theconstruction industry growth. Based on this, it researches the dynamic relationshipbetween environmental regulation and construction industry growth. Then itevaluates the economic growth efficiency of construction industry considering theenvironmental regulation. Finally it proposes the countermeasures of improving theeconomic growth efficiency of construction industry under environmentalregulation. This article mainly studies the effect of environmental regulation onconstruction industry growth from the following several aspects.This paper constructs the effective connection between environmentalregulation and construction industry growth by analyzing the influencingmechanism of environmental regulation on construction industry growth. It makessure the microscopic transmission mechanism of environmental regulation to realizeeconomic and environmental targets. It constructs the dynamic effect model ofenvironmental regulation through three angles of construction industry growthperformance, technical progress, and the energy consumption intension andanalyzes the dynamic influence relationships between variables. This paper takesthe empirical research from the whole country, high regulation area and lowregulation area, respectively. The results show that it is inverted “U” betweenconstruction industry growth performance and environmental regulation intension.The existing environmental regulation intension could promote constructionindustry growth performance since most of the areas’ environmental regulationintension is in the left side of the inflection point. It is significant that the effect ofenvironmental regulation intension on the technical progress of construction industry. The policy of energy and emission reduction can promote the technicalprogress of construction industry. The effect of environmental regulation intensionon construction energy consumption intension is significant and the effect ofenvironmental regulation is discrepant in different regulation area.This paper has a deep study on dynamic relationship between theenvironmental regulation and construction industry growth based on the aboveresearch. According to the economic analysis on the effect of environmentalregulation on construction industry growth, this paper takes panel unit root test,panel cointegration test and panel error correction model to analyze the long-termand short-term effects of environmental regulation on construction industry growththrough the whole country, high regulation area, and low regulation area,respectively. It analyzes the correlation between environmental regulation andconstruction industry growth and the dynamic changes by using the methods ofpanel variance decomposition, panel VAR, panel pulse under differentenvironmental regulation. These results show that there is a long-term cointegrationrelationship between environmental regulation and construction industry growth;the environmental regulation intension has an important contribution for theconstruction industry growth and environmental regulation intension own change;construction industry growth has relatively small contribution for environmentalregulation intension change; the environmental regulation intension change has abigger influence on construction industry growth in the high environmentalregulation area than that in low environmental regulation area; the effect ofconstruction industry growth on environmental regulation intension is notsignificant.Based on theory analysis of the economic growth efficiency of constructionindustry, this paper makes the comprehensive technical efficiency evaluation andconstruction industry growth efficiency evaluation by using DEA method andMalmquist production efficiency index method. The empirical researches take intoaccount three dimensions of considering environmental governance cost,environmental regulation intension, and economic development level, respectively.This paper explores the inherent law of construction industry growth efficiencyunder environmental regulation. The research results show that the comprehensivetechnical efficiency level of construction industry in high environmental regulationarea is lower than that in low environmental regulation area; the comprehensivetechnical efficiency level of construction industry in economic developed area ishigher than that in economic underdeveloped area; the comprehensive technicalefficiency of construction industry in the western areas is the minimum. Moreover,the study finds that the construction comprehensive technical efficiency does notchange in some provinces after adding environmental governance investment, especially in high environmental regulation area. The construction industry growthefficiency in high regulation area is lower than that in low regulation area. Theeconomic growth efficiency of construction industry in the eastern area is the lowestand that in the western area is the highest. Based on the above empirical tests, thispaper puts forward the countermeasures and suggestions from the macro and microaspects to improve the construction industry growth efficiency under environmentalregulation.This research breakthroughs the traditional research angle of view, andconstructs the corresponding dynamic assessment model based on the theoryanalysis of the influencing mechanism of environmental regulation on theconstruction industry growth. It enriches the connotation of environmentalregulation effect through revealing the dynamic relationship and the dynamicchange between the environmental regulation and construction industry growth byusing advanced econometric methods. It takes the comprehensive technicalefficiency evaluation and economic growth efficiency evaluation on constructionindustry under the condition of environmental regulation by using DEA andMalmquist productivity index method. It has theoretical and practical significancefor the government decision makers and construction enterprise to make a strategicdecision.