Impact analysis of a construction and demolition waste dumping quota trading scheme in uncertain, cooperative, and non-cooperative scenarios

Abstract

Construction and demolition waste (C&DW) has emerged as a significant environmental challenge, demanding urgent attention and innovative solutions. In response, this paper introduces a novel approach, the C&DW Dumping Quota Trading Scheme (CDWTS), and presents an optimization model to gauge its deep-seated implications on construction project investments and environmental pollution mitigation. This model considers both collaborative and non-collaborative interactions among decision-makers and effectively addresses the uncertainties inherent in the evaluation process through a proposed Hybrid Defuzzification Strategy (HDS). The HDS integrates distributed robust optimization, fuzzy set theory with risk-oriented, and sensitivity analysis to attain risk hedging that balances economy and robustness in the assessment and analysis of the CDWTS. Numerical testing of the model using data from Nanjing, China offers valuable perspectives for CDWTS stakeholders. Specifically, the CDWTS serves as a powerful tool for encouraging enterprises to internalize the external costs of pollution, resulting in significant environmental improvements and the promotion of cleaner production processes within the construction industry. Notably, the allotment and pricing of quotas are identified as pivotal factors in optimizing environmental benefits. Future implementations of the CDWTS should prioritize the development of equitable and efficient quota allocation methods while ensuring stability in quota pricing. Furthermore, it's vital to recognize the potential environmental risks associated with collusion among enterprises and the utilization of rudimentary recycling technologies. Thus, it is recommended to augment subsidies for technological investments in the recycling process and to enhance supervision and management of enterprise alliances. In conclusion, unlike prior studies that mainly delved into dissecting CDWTS concepts and designing its framework, this paper conducts a comprehensive analysis of CDWTS's economic and environmental benefits while addressing uncertainties. Policymakers should consider adopting the CDWTS and HDS into their waste management toolkits, as well as fully assessing the potential concerns identified in this study. These tools and insights not only assist the construction industry in moving toward cleaner production on its own, but they also address potential barriers for policymakers on a path to "waste-free cities".