Sustainable housing development in China: does financial institutions overcome the risks and challenges to sustainable housing?
Abstract
Housing industry is one of the major threats to global environment and resource depletion. Particularly in China, it is regarded as a major challenge due to massive population growth. The most common barriers involve; economic barriers and environmental barriers. Therefore, to promote sustainable housing development, the management of these barriers is most crucial. This study is an attempt to overcome these barriers with the help of financial institutions in the context of China. The sample of the study are construction sector employees which are selected through simple random sampling method. Partial Least Square (PLS) is employed as statistical tool to analyze the primary data. Results revealed the positive role of financial institutions to overcome the challenges related to the economic barriers and environmental barriers. Financing from banks for the sustainable housing schemes can reduce the economic barriers and help to fulfil the sustainable housing criteria. Similarly, the environment requirements can also be achieved through environmental policy developed by the banks in China. This study recommended the Chinese government to promote sustainable hosing development through the promotion of bank financing and implementation of banks environmental policies.
Please view correction statement: Corrigendum: Sustainable housing development in China: does financial institutions overcome the risks and challenges to sustainable housing?
First published online 14 March 2024
Keyword : sustainable housing development, financial institutions, environmental policy, bank financing, economic barriers, environmental barrier
How to Cite
Ma, S. (2024). Sustainable housing development in China: does financial institutions overcome the risks and challenges to sustainable housing?. Technological and Economic Development of Economy, 30(3), 627–645. https://doi.org/10.3846/tede.2024.20581
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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He, L.-H., Leng, Y.-K., & Pan, S.-N. (2022). Decisions of low carbon supply chain with corporate social responsibility and fairness concerns. International Journal of Operations and Quantitative Management, 27(4), 337–360. https://doi.org/10.46970/2021.27.4.3
Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, Jr. D. J., Hair, J. F., Hult, G. T. M., & Calantone, R. J. (2014). Common beliefs and reality about PLS: Comments on Rönkkö and Evermann (2013). Organizational Research Methods, 17(2), 182–209. https://doi.org/10.1177/1094428114526928
Hilkenmeier, F., Bohndick, C., Bohndick, T., & Hilkenmeier, J. (2020). Assessing distinctiveness in multidimensional instruments without access to raw data – A manifest Fornell-Larcker criterion. Frontiers in Psychology, 11, 1–9. https://doi.org/10.3389/fpsyg.2020.00223
Ibrahim, I. A. (2020). Sustainable housing development: Role and significance of satisfaction aspect. City, Territory and Architecture, 7(1), Article 21. https://doi.org/10.1186/s40410-020-00130-x
Kedir, A., Elhiraika, A., Chinzara, Z., & Sandjong, D. (2017). Growth and development finance required for achieving sustainable development goals (SDGs) in Africa. African Development Review, 29(S1), 15–26. https://doi.org/10.1111/1467-8268.12230
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Khattak, M. A., & Saiti, B. (2021). Banks’ environmental policy and business outcomes: The role of competition. Business Strategy and the Environment, 30(1), 302–317. https://doi.org/10.1002/bse.2622
Kumari, R. (2022, September). System dynamics approach for sustainable housing development. IOP Conference Series: Earth and Environmental Science, 1077, Article 012008. https://doi.org/10.1088/1755-1315/1077/1/012008
Li, Q., Ruan, W., Shi, H., Xiang, E., & Zhang, F. (2022). Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions. Business Strategy and the Environment, 31(7), 2931–2946. https://doi.org/10.1002/bse.3055
Ogweno, B., Muturi, W., & Rambo, C. (2016). Determinants of timely completion of road Construction projects financed by Kenya Roads board in Kisumu County. International Journal of Economic Commerce and Management, 4(11), 360–402. https://www.academia.edu/download/81549221/41125.pdf
Pan, Z., Shi, S., Yang, X., Xiao, X., Zhang, W., Wang, S., & Ma, Y. (2021). Eco-friendly construction of spiroquinazolin-2-(thi) ones and quinolin-(thio) ureas via Fe (iii)-catalyzed multi-component domino double [4+2] annulations. Green Chemistry, 23(8), 2944–2949. https://doi.org/10.1039/D1GC00889G
Rashid, M. H. U., & Uddin, M. M. (2018). Green financing for sustainability: analysing the trends with challenges and prospects in the context of Bangladesh. International Journal of Green Economics, 12(3–4), 192–208. https://doi.org/10.1504/IJGE.2018.097876
Richardson, B. J. (2002). Environmental regulation through financial institutions: New pathways for disseminating environmental policy. Environmental and Planning Law Journal, 19(1), 58–77.
Safronova, N., Nezhnikova, E., & Kolhidov, A. (2017). Sustainable housing development in conditions of changing living environment. In MATEC Web of Conferences, 106, Article 08024. https://doi.org/10.1051/matecconf/201710608024
Shi, L., Ye, K., Lu, W., & Hu, X. (2014). Improving the competence of construction management consultants to underpin sustainable construction in China. Habitat International, 41, 236–242. https://doi.org/10.1016/j.habitatint.2013.08.002
Shurrab, J., Hussain, M., & Khan, M. (2019). Green and sustainable practices in the construction industry: A confirmatory factor analysis approach. Engineering, Construction and Architectural Management, 26(6), 1063–1086. https://doi.org/10.1108/ECAM-02-2018-0056
Susilo, F. D. A., & Octarino, C. N. (2022). Energy efficiency optimization on sustainable housing modelling in Tegaldowo, Pekalongan, Central Java. Proceedings of the International Webinar on Digital Architecture 2021 (IWEDA 2021). Atlantis Press. https://doi.org/10.2991/assehr.k.220703.031
Wang, W., Tian, Z., Xi, W., Tan, Y. R., & Deng, Y. (2021). The influencing factors of China’s green building development: An analysis using RBF-WINGS method. Building and Environment, 188, Article 107425. https://doi.org/10.1016/j.buildenv.2020.107425
Wu, W., An, S., Wu, C.-H., Tsai, S.-B., & Yang, K. (2020). An empirical study on green environmental system certification affects financing cost of high energy consumption enterprises-taking metallurgical enterprises as an example. Journal of Cleaner Production, 244, Article 118848. https://doi.org/10.1016/j.jclepro.2019.118848
Xu, X., Wang, Y., & Tao, L. (2019). Comprehensive evaluation of sustainable development of regional construction industry in China. Journal of Cleaner Production, 211, 1078–1087. https://doi.org/10.1016/j.jclepro.2018.11.248
Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability, 14(2), Article 989. https://doi.org/10.3390/su14020989
Zheng, G.-W., Siddik, A. B., Masukujjaman, M., & Fatema, N. (2021a). Factors affecting the sustainability performance of financial institutions in Bangladesh: The role of green finance. Sustainability, 13(18), Article 10165. https://doi.org/10.3390/su131810165
Zheng, Y., Zhao, Y., & Meng, X. (2021b). Market entrance and pricing strategies for a capital-constrained remanufacturing supply chain: Effects of equity and bank financing on circular economy. International Journal of Production Research, 59(21), 6601–6614. https://doi.org/10.1080/00207543.2020.1821926
Adabre, M. A., & Chan, A. P. (2019). Critical success factors (CSFs) for sustainable affordable housing. Building and Environment, 156, 203–214. https://doi.org/10.1016/j.buildenv.2019.04.030
Ahmed, Z., Asghar, M. M., Malik, M. N., & Nawaz, K. (2020). Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China. Resources Policy, 67, Article 101677. https://doi.org/10.1016/j.resourpol.2020.101677
Antipin, D., & Trufanova, S. (2021, December 4). Project financing as a tool to enhance the role of commercial banks in the construction industry. IOP Conference Series: Earth and Environmental Science, 751, Article 012130. https://doi.org/10.1088/1755-1315/751/1/012130
Chan, A. P., & Adabre, M. A. (2019). Bridging the gap between sustainable housing and affordable housing: The required critical success criteria (CSC). Building and Environment, 151, 112–125. https://doi.org/10.1016/j.buildenv.2019.01.029
Cheah, J.-H., Sarstedt, M., Ringle, C. M., Ramayah, T., & Ting, H. (2018). Convergent validity assessment of formatively measured constructs in PLS-SEM: On using single-item versus multi-item measures in redundancy analyses. International Journal of Contemporary Hospitality Management, 30(11), 3192–3210. https://doi.org/10.1108/IJCHM-10-2017-0649
Chen, J., Siddik, A. B., Zheng, G.-W., Masukujjaman, M., & Bekhzod, S. (2022). The effect of green banking practices on banks’ environmental performance and green financing: An empirical study. Energies, 15(4), Article 1292. https://doi.org/10.3390/en15041292
Chen, Q., Glicksman, L., Lin, J., & Scott, A. (2007). Sustainable urban housing in China. Journal of Harbin Institute of Technology (New Series), 14, 6–9. www.researchgate.net/profile/Leon-Glicksman/publication/237354990
Chuang, S.-P., & Huang, S.-J. (2018). The effect of environmental corporate social responsibility on environmental performance and business competitiveness: The mediation of green information technology capital. Journal of Business Ethics, 150(4), 991–1009. https://doi.org/10.1007/s10551-016-3167-x
Dawoud, N., Micheal, A., & Moussa, R. R. (2020, April). A Review on Investigating the experimental process for partial replacement of cement with sugarcane bagasse in the construction industry. IOP Conference Series: Materials Science and Engineering, 974, Article 012036. https://doi.org/10.1088/1757-899X/974/1/012036
Ekasari, N., Nurhasanah, N., Chairunnisa, F., & Siregar, A. P. (2019). Model performance supported SMEs strategy-based applications through e-money gofood business customer satisfaction and grabfood. Ekonomis: Journal of Economics and Business, 3(2), 129–136. https://doi.org/10.33087/ekonomis.v3i2.72
Erdogan, A. I. (2016). Investigating the demand of small hotel and restaurant businesses for bank financing: The case of Turkey. Journal of Empirical Studies, 3(1), 1–6. https://doi.org/10.18488/journal.66/2016.3.1/66.1.1.6
Galletta, S., Mazzù, S., Naciti, V., & Vermiglio, C. (2021). Sustainable development and financial institutions: Do banks’ environmental policies influence customer deposits? Business Strategy and the Environment, 30(1), 643–656. https://doi.org/10.1002/bse.2644
García‐Sánchez, I. M., Rodríguez‐Ariza, L., Aibar‐Guzmán, B., & Aibar‐Guzmán, C. (2020). Do institutional investors drive corporate transparency regarding business contribution to the sustainable development goals? Business Strategy and the Environment, 29(5), 2019–2036. https://doi.org/10.1002/bse.2485
Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer Nature. https://doi.org/10.1007/978-3-030-80519-7
Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
Hasanov, F., Mikayilov, J. I., Yusifov, S., Aliyev, K., & Talishinskaya, S. (2019). The role of social and physical infrastructure spending in tradable and non-tradable growth. Contemporary Economics, 13(1), 79–98. https://ssrn.com/abstract=3384531
He, L.-H., Leng, Y.-K., & Pan, S.-N. (2022). Decisions of low carbon supply chain with corporate social responsibility and fairness concerns. International Journal of Operations and Quantitative Management, 27(4), 337–360. https://doi.org/10.46970/2021.27.4.3
Henseler, J., Dijkstra, T. K., Sarstedt, M., Ringle, C. M., Diamantopoulos, A., Straub, D. W., Ketchen, Jr. D. J., Hair, J. F., Hult, G. T. M., & Calantone, R. J. (2014). Common beliefs and reality about PLS: Comments on Rönkkö and Evermann (2013). Organizational Research Methods, 17(2), 182–209. https://doi.org/10.1177/1094428114526928
Hilkenmeier, F., Bohndick, C., Bohndick, T., & Hilkenmeier, J. (2020). Assessing distinctiveness in multidimensional instruments without access to raw data – A manifest Fornell-Larcker criterion. Frontiers in Psychology, 11, 1–9. https://doi.org/10.3389/fpsyg.2020.00223
Ibrahim, I. A. (2020). Sustainable housing development: Role and significance of satisfaction aspect. City, Territory and Architecture, 7(1), Article 21. https://doi.org/10.1186/s40410-020-00130-x
Kedir, A., Elhiraika, A., Chinzara, Z., & Sandjong, D. (2017). Growth and development finance required for achieving sustainable development goals (SDGs) in Africa. African Development Review, 29(S1), 15–26. https://doi.org/10.1111/1467-8268.12230
Khatib, S. F., Abdullah, D. F., Elamer, A. A., & Abueid, R. (2021). Nudging toward diversity in the boardroom: A systematic literature review of board diversity of financial institutions. Business Strategy and the Environment, 30(2), 985–1002. https://doi.org/10.1002/bse.2665
Khattak, M. A., & Saiti, B. (2021). Banks’ environmental policy and business outcomes: The role of competition. Business Strategy and the Environment, 30(1), 302–317. https://doi.org/10.1002/bse.2622
Kumari, R. (2022, September). System dynamics approach for sustainable housing development. IOP Conference Series: Earth and Environmental Science, 1077, Article 012008. https://doi.org/10.1088/1755-1315/1077/1/012008
Li, Q., Ruan, W., Shi, H., Xiang, E., & Zhang, F. (2022). Corporate environmental information disclosure and bank financing: Moderating effect of formal and informal institutions. Business Strategy and the Environment, 31(7), 2931–2946. https://doi.org/10.1002/bse.3055
Ogweno, B., Muturi, W., & Rambo, C. (2016). Determinants of timely completion of road Construction projects financed by Kenya Roads board in Kisumu County. International Journal of Economic Commerce and Management, 4(11), 360–402. https://www.academia.edu/download/81549221/41125.pdf
Pan, Z., Shi, S., Yang, X., Xiao, X., Zhang, W., Wang, S., & Ma, Y. (2021). Eco-friendly construction of spiroquinazolin-2-(thi) ones and quinolin-(thio) ureas via Fe (iii)-catalyzed multi-component domino double [4+2] annulations. Green Chemistry, 23(8), 2944–2949. https://doi.org/10.1039/D1GC00889G
Rashid, M. H. U., & Uddin, M. M. (2018). Green financing for sustainability: analysing the trends with challenges and prospects in the context of Bangladesh. International Journal of Green Economics, 12(3–4), 192–208. https://doi.org/10.1504/IJGE.2018.097876
Richardson, B. J. (2002). Environmental regulation through financial institutions: New pathways for disseminating environmental policy. Environmental and Planning Law Journal, 19(1), 58–77.
Safronova, N., Nezhnikova, E., & Kolhidov, A. (2017). Sustainable housing development in conditions of changing living environment. In MATEC Web of Conferences, 106, Article 08024. https://doi.org/10.1051/matecconf/201710608024
Shi, L., Ye, K., Lu, W., & Hu, X. (2014). Improving the competence of construction management consultants to underpin sustainable construction in China. Habitat International, 41, 236–242. https://doi.org/10.1016/j.habitatint.2013.08.002
Shurrab, J., Hussain, M., & Khan, M. (2019). Green and sustainable practices in the construction industry: A confirmatory factor analysis approach. Engineering, Construction and Architectural Management, 26(6), 1063–1086. https://doi.org/10.1108/ECAM-02-2018-0056
Susilo, F. D. A., & Octarino, C. N. (2022). Energy efficiency optimization on sustainable housing modelling in Tegaldowo, Pekalongan, Central Java. Proceedings of the International Webinar on Digital Architecture 2021 (IWEDA 2021). Atlantis Press. https://doi.org/10.2991/assehr.k.220703.031
Wang, W., Tian, Z., Xi, W., Tan, Y. R., & Deng, Y. (2021). The influencing factors of China’s green building development: An analysis using RBF-WINGS method. Building and Environment, 188, Article 107425. https://doi.org/10.1016/j.buildenv.2020.107425
Wu, W., An, S., Wu, C.-H., Tsai, S.-B., & Yang, K. (2020). An empirical study on green environmental system certification affects financing cost of high energy consumption enterprises-taking metallurgical enterprises as an example. Journal of Cleaner Production, 244, Article 118848. https://doi.org/10.1016/j.jclepro.2019.118848
Xu, X., Wang, Y., & Tao, L. (2019). Comprehensive evaluation of sustainable development of regional construction industry in China. Journal of Cleaner Production, 211, 1078–1087. https://doi.org/10.1016/j.jclepro.2018.11.248
Zhang, X., Wang, Z., Zhong, X., Yang, S., & Siddik, A. B. (2022). Do green banking activities improve the banks’ environmental performance? The mediating effect of green financing. Sustainability, 14(2), Article 989. https://doi.org/10.3390/su14020989
Zheng, G.-W., Siddik, A. B., Masukujjaman, M., & Fatema, N. (2021a). Factors affecting the sustainability performance of financial institutions in Bangladesh: The role of green finance. Sustainability, 13(18), Article 10165. https://doi.org/10.3390/su131810165
Zheng, Y., Zhao, Y., & Meng, X. (2021b). Market entrance and pricing strategies for a capital-constrained remanufacturing supply chain: Effects of equity and bank financing on circular economy. International Journal of Production Research, 59(21), 6601–6614. https://doi.org/10.1080/00207543.2020.1821926