Nexus amongst environmental regulations, carbon emission intensity and technological innovation in China's construction industry

China's construction industry confronts with the dilemma of carbon emissions in adjusting the environmental regulations. Many studies are neglected on discovering the potential nexus amongst environmental regulations (ERs), technological innovation (TI) and CEI (CEI) and ignores the relationships amongst TI for reducing CEI. To mitigate this gap, this study bridges institutional theory to integrate the practices in the construction industry. This study applies a panel dataset on the construction industry from 30 provinces during 2004-2018 and uses it with a two-step system-generalised method of moments for analysis. The proposed method enables the prevention of the interference of the heteroscedasticity problem and improves certain analytical efficiency. The results are as a guideline for policymakers in rechecking the policies and regulations adequacy. The findings indicate that (1) the forced emission reduction effect is proven by command-and-control and market-based ERs, which can inhibit CEI; (2) voluntary ERs have an inverted U-shaped nexus with CEI; in other words, the green paradox effect shifts to the forced emission reduction effect once the intensity of voluntary ERs increases; and (3) market-based and voluntary ERs reduce CEI effectively by using TI as the mediator in construction industry.

Automated summary

China's construction industry is dealing with carbon emissions dilemma and needs to adjust environmental regulations. Many studies neglect the relationship between environmental regulations, technological innovation, and carbon emissions. This study bridges institutional theory to integrate practices in the construction industry. The findings can guide policymakers in reevaluating policy adequacy.