Low carbon buildings and regional prosperity: the economic growth effects of energy efficiency and environmental performance in China’s Construction industry

This study employs capital, labor, and energy as input variables, with provincial GDP as the desired output and CO2 emissions as the undesired output. Within the total factor productivity framework, two energy efficiency indices – energy economic efficiency and energy-environmental performance – are defined using the Data Envelopment Analysis (DEA) method. Utilizing a non-radial, non-angle Slacks-Based Measure (SBM) model, the study calculates these indices and their decomposition for Chinese provinces from 2004 to 2023, analyzing their evolution and regional disparities. Based on the Environmental Kuznets Curve (EKC) theory, the paper examines the relationship between energy efficiency indices, their decomposition, and regional economic growth. Results indicate that China’s overall energy efficiency indices were relatively low during the sample period, with significant regional disparities and potential for energy conservation and emission reduction. A non-linear relationship (either inverted U-shaped or U-shaped) was observed between these indices and economic growth. Industrial structure, population density, energy structure, and foreign capital utilization significantly affected both energy efficiency indices, though the mechanisms varied.