Identifying Opportunities for Environmental Sustainability: A Grounded Study of the New Zealand Road Construction Industry

Abstract

The scale of the challenge presented by sustainable development is substantial. The required transformations are complex and multi-hierarchical, involving many different agents and significant social, institutional, and technological change. This thesis identifies opportunities to leverage institutional advancement towards environmental sustainability in the road construction industry in New Zealand. Legislative changes in the early 2000s had established sustainable development as a policy objective for local government and the land transport sector in New Zealand. However, in 2007, there existed an institutional and operational gap between these high-level policy objectives and the prioritisation and delivery of environmental sustainability outcomes in onthe- ground road construction activities. In response to this practical problem, this thesis examines the factors which motivated and influenced the greening of road construction firms and their activities, and the procurement of environmental outcomes by local road-controlling authorities. The thesis argues that road construction firms were motivated to explore environmental sustainability initiatives for several reasons, but predominantly adopted initiatives when these were expected to result in tangible outcomes for the firm. The commercial relationship between road construction firms and their clients was the key determinant with respect to the adoption of environmental sustainability initiatives by road construction firms. With respect to the purchase of environmental outcomes by local road-controlling authorities, it is argued that there had been no significant institutionalisation of environmental sustainability within the industry’s procurement and funding regimes. The existing ways of doing things and existing institutional structures still dominated how road-works were funded, procured, and constructed. Consequently, local asset managers did not feel justified in procuring beyondcompliance environmental outcomes in road-works. The thesis applies an exploratory, grounded theory method to develop empirically grounded and theoretically justified models of firm-greening behaviour and green public procurement in this industry. These models provide the credible basis on which to identify opportunities to leverage institutional advancement toward environmental sustainability. Opportunities are identified with respect to improving road construction firms’ capabilities and performance, and with respect to enabling the funding and prioritisation of environmental outcomes in the procurement of road-works by road-controlling authorities. The thesis argues that these opportunities remain relevant in the present context.