Measurement for overcapacity and its influencing factors on the construction industry-evidence from China's provincial data.

Abstract

Achieving "Responsible Consumption and Production" is one of the 17 sustainable development goals set by the United Nations. Controlling overcapacity is an important guarantee in order to achieve this goal. There are many types and large quantities of raw materials in the construction industry, which easily leads to overcapacity. Studying the problems related to overcapacity in the construction industry helps to understand the formation mechanism of overcapacity in related industries. This puts forward targeted countermeasures and suggestions for the capacity resolution to achieve green and sustainable development. Based on this, this paper uses the construction industry capacity utilization data of the Shandong Province in China from 2005 to 2017. It also uses the production function method to construct a construction industry overcapacity calculation model to estimate the construction industry capacity utilization and overcapacity rate in Shandong Province. The DEA method was used to construct an extraction model of influencing factors for overcapacity. The results show that the capacity utilization ratio for Shandong Province from 2005 to 2016 was 81.98%. There was no overcapacity as a whole, but there were large fluctuations in capacity utilization for some time periods. Suggestions for optimization countermeasures were also proposed.