The Optimal Emission Reduction and Recycling Strategies in Construction Material Supply Chain under Carbon Cap–Trade Mechanism

Jiahui Xu, Renfu Jia (), Buhan Wang, Anqi Xu and Xiaoxia Zhu
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Jiahui Xu: College of Civil Science and Engineering, Yangzhou University, Yangzhou 225127, China
Renfu Jia: College of Civil Science and Engineering, Yangzhou University, Yangzhou 225127, China
Buhan Wang: College of Civil Science and Engineering, Yangzhou University, Yangzhou 225127, China
Anqi Xu: College of Civil Science and Engineering, Yangzhou University, Yangzhou 225127, China
Xiaoxia Zhu: College of Civil Science and Engineering, Yangzhou University, Yangzhou 225127, China

Sustainability, 2023, vol. 15, issue 12, 1-18

Abstract: As urbanization continues to expand in China, carbon emissions (CE) from the construction industry and the amount of construction and demolition waste (C&DW) are rapidly increasing. In order to reduce CEs and environmental hazards, this paper constructs a Stackelberg game model to explore the evolution of carbon emissions reduction (CER) and recycling strategies in the construction material supply chain (CMSC) under the carbon cap–trade (C&T) mechanism. The monotonicity analysis on important variables and model comparison simulation are then conducted. The results show the following: (1) A contractor’s green preference positively correlates with the CER level and recycling rate, while the CER cost exerts the opposite effect. (2) The C&T mechanism incentivizes low-emission manufacturers to actively participate in CER. However, excessive carbon trading prices may put high-emitters in a dilemma, making the whole supply chain profitless. (3) The recycler’s decision to recycle C&DW tends to follow the manufacturer’s CER decision. These findings not only help policy makers understand stakeholders’ behavior in CMSC under C&T mechanism, but also provide a basis for the government to formulate CER policies and introduce low-carbon management.

Keywords: carbon emission reduction; sustainable supply chain; recycling; carbon cap–trade mechanism; construction waste (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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