Integrating energy pricing and green technology in residential building management: a panel threshold analysis for sustainable construction in China

Urban residential buildings account for a growing share of China’s electricity consumption, yet strategies for integrating energy-efficient technologies with price-responsive building design remain underdeveloped. This study examines threshold effects of technological innovation (input intensity [R&D] and green patents [GP]) on household electricity consumption (HEC) using data from 30 Chinese provinces (2005-2020). Two-way fixed-effects and panel threshold regression models are employed. Results show that R&D exhibits a single threshold at 0.40%, while GP presents dual thresholds at 456 and 1567 units. Across regimes, electricity price (EP) responsiveness declines, with elasticity reductions of 26.3% under the GP model and 22.5% under the R&D model. Heterogeneity analysis reveals regional and socioeconomic differences: eastern region has higher price elasticity (-1.187) than central and western regions, while high-income households show 52% stronger price responsiveness (-2.028) than low-income groups (-1.330). This study contributes in three ways: (1) identifying nonlinear changes in HEC price elasticity across innovation regimes; (2) revealing R&D and GP thresholds that reshape price responsiveness; and (3) demonstrating heterogeneity in price elasticity across regions, urbanization levels and income groups. The findings provide guidance for urban residential buildings and policy design in China.