China’s construction industry has constantly been confronted with the problems, such as high resource consumption, serious pollution and low energy efficiency. Thus, improving the energy efficiency of the construction industry and reducing its energy consumption can not only promote the sustainable development of the socio-economy and eco-economy, but also enhance the overall development level of the construction industry. In the context, the objectives are to put forward a set of systematic methodologies for measuring the energy efficiency of the regional construction industry and analyzing its change trends. First, the energy efficiency index system of the construction industry and its influencing factors are constructed through the literature review. Second, two research methods (the three-stage Data Envelopment Analysis (DEA) model and the Data Envelopment Analysis-Discriminant Analysis (DEA-DA) model) are applied to analyze the energy efficiency in 30 provinces of China and the change trends from 2003 to 2011. The results indicate that after eliminating the influence of the environment factors and random errors, the energy efficiency values of the construction industry in most of the provinces were improved. The mean of China’s energy efficiency of the construction industry in each year was approximately 0.92. Except Shandong with the lowest values, the mean of the other provinces was over 0.8, which reflected that the energy management and utilization levels in the construction industry were relative mature. However, the energy efficiency in most of provinces fluctuated constantly during these nine years, with the peak in 2004 and a downward trend in the overall efficiency after 2004. From the regional aspect, the energy efficiency of the construction industry in the eastern, central and western regions decreased successively; as the development level of the local economy had less significant effects on the energy efficiency, the gaps among the three regions were not obvious.
5 September 2013 in Construction Management and Economics
In the context of unbalanced regional economic development in China, there are large regional differences in the development of the construction industry. These long-standing and increasing differences not only influence the total productivity of China’s construction industry but also hinder effective resource distribution. Total factor productivity (TFP) is a measure of long-term economic growth and a comprehensive industry-level productivity measure. The objectives are to put forward a set of systematic methodologies for selecting a productivity index, to develop a TFP measure for the construction industry and to conduct an analysis of spatial differences. First, the input and output index system of the construction industry is established, and China’s construction industry TFP is measured with the DEA–Malmquist index. Second, spatial differences in the construction industry TFP are analysed in terms of the coefficient of variation (CV) and using spatial clustering analysis. The results indicate that China’s construction industry TFP has improved steadily. This improvement has been due mainly to improvements in pure technology efficiency, technological progress and scale efficiency. In the past five years, the CV of China’s construction industry productivity has generally been small and has changed only slightly. China’s construction industry TFP for all regions exhibits a ladder-like distribution that is different from the distribution by economic areas among the central, western and eastern regions.
Total Factor Productivity (TFP) is a measure of long-term economic growth and a comprehensive industry-level productivity measure. China’s construction industry exhibits a ladder-like distribution among the central, western and eastern regions and has low productivity. Using methods consisting of the DEA-Malmquist index, measurement for the market structure, and panel data model in accordance with the Structure-Conduct-Performance (SCP) paradigm, this study systematically analyzed the different interaction mechanisms of scale structure, ownership structure, industrial structure, and specialization structure of China’s construction industry among the western, central and eastern regions over the past six years. It finds that the traditional SCP paradigm of the industrial economy is also applicable to the construction industry. The enterprise scale has a positive impact on the construction industry TFP of the entire country and the western region, while the proportion of state-owned enterprises has a negative influence on the construction industry TFP of the entire country and particularly the western area. Meanwhile, industrial structure has a positive effect on the construction industry TFP of the eastern area and a negative effect on that of the central area. Additionally, the proportion of general contractors on construction enterprises has a positive impact on the regional construction industry TFP. The research method presented in this study can be applied to other countries as well as to other industries, analyzing the interaction mechanisms of market structure in productivity from the spatial perspective. Therefore this study provides a systematic research methodology for the measurement of regional industry productivity and the identification of impact factors.
1 July 2013 in Construction Management and Economics
The structure–conduct–performance (SCP) paradigm posits that market structure determines market performance, and the generally low productivity of China’s construction industry is a reflection of the irrationality of its market structure. Currently, the main approaches for measuring market structure can be classified as either structural approaches or non-structural approaches. Because the statistical data on structural approaches is one-sided, the indicators for the Panzar–Rosse model (a non-structural approach) for the construction industry can be selected by examining the Panzar–Rosse model and comparing the characteristics of the construction industry with those of the banking industry. The Panzar–Rosse model is employed to assess the market structure of 21 listed companies in China’s construction industry during the period from 2009 to 2011. The analysis revealed that China’s construction industry operates under conditions of monopolistic competition with free-entry equilibrium. The methods and results of the research are expected to contribute to the advancement of theories related to and methods of analysing the market structure of industries other than the banking industry.