Evaluating the Effect of China's Carbon Emission Trading Policy on Energy Efficiency of the Construction Industry Based on a Difference-in-Differences Method

Abstract

China's construction industry makes important contributions to energy consumption and pollution emissions. It is significant to improve energy efficiency in the construction industry. Since 2011, the introduction of China's carbon emission trading policy has had a great impact on energy conservation and emission reduction. The implementation of the carbon emission trading policy provides us with an opportunity to find solutions to improve the energy efficiency of the construction industry (EECI) in China. In this article, the implementation of carbon emission trading is regarded as a quasi-natural experiment, and the impact of the carbon emission trading policy on the energy efficiency of the construction industry is evaluated by analyzing the panel data related to the energy of the construction industry in 30 provincial regions from 2008 to 2016 through a difference-in-differences method. The main conclusions are as follows. First, the carbon emission trading policy can improve EECI. Second, the carbon emission trading policy can achieve the policy effect of improving EECI by optimizing the allocation of construction machinery resources and enhancing regional technical innovation. At the same time, strengthening government environmental regulation can strengthen the policy effect as well. Finally, some policy implications based on the study are proposed.