Investigation of the optimal price for recycled aggregate concrete — an experimental approach

Abstract

The use of recycled aggregate concrete can reduce the use of primary resources as well as the amount of waste generated. However, the diffusion of recycled aggregate concrete requires the price competitiveness. This study investigated the question of what the optimal price for recycled aggregate concrete should be in order to be generally accepted and what monetary measures can be taken to increase the willingness to use recycled aggregate concrete. The questions have been examined by applying a randomised controlled factorial design as well as the Price Sensitivity Meter. It has been found that the optimal price corridor for recycled aggregate concrete should lie between 83.3% and 100% of the regional reference price for conventional concrete. In addition, it was found that the reimbursement of additional costs necessary for ensuring the optimal price for recycled aggregate concrete, significantly increases the willingness to use it. The present results suggest that a possible temporary state aid to ensure price competitiveness could increase the use of recycled aggregate concrete and thus reduce the amount of waste generated and primary resource consumption. For the design of a possible monetary aid for the use of recycled aggregate concrete, a simple algorithm has been proposed that minimises possible misincentives and takes into account the proportion of recycled aggregate actually used in concrete relative to the maximum permissible proportion.