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2015•Advanced materials researchRequires access

Study on the Impact of Environmental Regulation on Construction Industries' TFP Growth

Guo Qiguan

Open publisher page 1 citations

Abstract

On the basis of regional construction industries' TFP growth measured by Malmquist Index,this paper gives an empirical study on the impact of environmental regulation on construction industries' TFP growth by using dynamic panel system GMM. The study shows that environmental regulation(ER)has an inverted U-shaped non-linear on construction industries' TFP growth:when ER intensity is low,its compensation effect is larger than its crowding out effect,promotes TFP increasing;when ER intensity increases and exceeds the critical point,crowding out effect is larger than innovation compensation effect,leads TFP decline. The government should control environmental regulation reasonably,thus achieving the winwin goal of energy saving and TFP growth.

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What this paper is about

On the basis of regional construction industries' TFP growth measured by Malmquist Index,this paper gives an empirical study on the impact of environmental regulation on construction industries' TFP growth by using dynamic panel system GMM. The study shows that environmental regulation(ER)has an inverted U-shaped non-linear on construction industries' TFP growth:when ER intensity is low,its compensation effect is larger than its crowding out effect,promotes TFP increasing;when ER intensity increases and exceeds the critical point,crowding out effect is larger than innovation compensation effect,leads TFP decline. The government should control environmental regulation reasonably,thus achieving the winwin goal of energy saving and TFP growth.

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Available abstract

On the basis of regional construction industries' TFP growth measured by Malmquist Index,this paper gives an empirical study on the impact of environmental regulation on construction industries' TFP growth by using dynamic panel system GMM. The study shows that environmental regulation(ER)has an inverted U-shaped non-linear on construction industries' TFP growth:when ER intensity is low,its compensation effect is larger than its crowding out effect,promotes TFP increasing;when ER intensity increases and exceeds the critical point,crowding out effect is larger than innovation compensation effect,leads TFP decline. The government should control environmental regulation reasonably,thus achieving the winwin goal of energy saving and TFP growth.

Key concepts: Total factor productivity, Economics, Environmental regulation, Panel data, Index (typography), Crowding out, Compensation (psychology), Econometrics

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