The total-factor energy productivity growth of China’s construction industry: evidence from the regional level

Abstract

This study uses the total-factor energy productivity change index (TFEPCH) to investigate the changes in energy productivity of construction industry for 30 provincial regions in China from 2006 to 2015, adopting the improved Luenberger productivity index combined with the directional distance function. In addition to traditional economic output indicator, this study introduces building floor space under construction as a physical output indicator for energy productivity evaluation. The TFEPCH was decomposed into energy technical efficiency change and energy technical progress shift. Results indicate that, first, energy productivity of China's construction industry decreased by 7.1% annually during 2006-2015. Energy technical regress, rather than energy technical efficiency, contributed most to the overall decline in energy productivity of China's construction industry. Second, energy productivity in the central region of China decreased dramatically, by a cumulative sum of approximately 77.1%, since 2006, while energy productivity in the eastern and western regions decreased by over 54.3 and 65.3%, respectively. Only two of the 30 provinces considered-Hebei and Shandong-improved their energy productivity during 2006-2015. The findings presented here provide a basis for decision-making and references for administrative departments to set differentiated energy efficiency goals and develop relevant measures. Additionally, the findings are highly significant for energy and resource allocation of Chinese construction industry in different regions. Keywords China Á Total-factor energy productivity Á Construction industry Á Energy technical efficiency change Á Energy technical change

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