IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v17y2020i17p6303-d406034.html
   My bibliography  Save this article

An Evolutionary Game Theory Study for Construction and Demolition Waste Recycling Considering Green Development Performance under the Chinese Government’s Reward–Penalty Mechanism

Author

Listed:
  • Hongyu Long

    (School of Civil Engineering and Geomatics, Southwest Petroleum University, Chengdu 610500, China)

  • Hongyong Liu

    (School of Civil Engineering and Geomatics, Southwest Petroleum University, Chengdu 610500, China)

  • Xingwei Li

    (College of Architecture and Urban-Rural Planning, Sichuan Agricultural University, Chengdu 611830, China
    School of Management, Jiangsu University, Zhenjiang 212013, China)

  • Longjun Chen

    (Institute for Advanced Materials and Technology, University of Science and Technology Beijing, Beijing 100083, China)

Abstract

The low efficiency of the closed-loop supply chain in construction and demolition waste (CDW) recycling has restricted the green development of China’s construction industry. Additionally, the government’s reward–penalty mechanism has a huge influence on green development. This study aimed to investigate the effect of green development performance (GDP) and the government’s reward–penalty mechanism on the decision-making process of production and recycling units, as well as to reveal the optimal strategies under different conditions. Therefore, the strategies’ evolutionary paths of production and recycling units were investigated by using evolutionary game theory. Firstly, an evolutionary game model between production units and recycling units was proposed under the government’s reward–penalty mechanism. Then, the evolutionary stability strategies in different scenarios were discussed. Finally, the effects of the relevant parameters on the evolutionary paths of the game model were analyzed using numerical simulations. The main conclusions are as follows. (1) When the range of GDP changes, the evolutionary stable strategy changes accordingly. GDP plays a positive role in promoting the high-quality development of the CDW recycling supply chain, but an increase in GDP can easily lead to the simultaneous motivation of free-riding. (2) The government’s reward–penalty mechanism effectively regulates the decision-making process of production and recycling units. An increase in the subsidy rate and supervision probability helps to reduce free-riding behavior. Moreover, the incentive effect of the subsidy probability on recycling units is more obvious, while the effect of the supervision probability on improving the motivation of active participation for production units is more remarkable. This paper not only provides a decision-making basis to ensure production and recycling units to make optimal strategy choices under different conditions but also provides a reference for the government to formulate a reasonable reward–penalty mechanism that is conducive to a macro-control market.

Suggested Citation

  • Hongyu Long & Hongyong Liu & Xingwei Li & Longjun Chen, 2020. "An Evolutionary Game Theory Study for Construction and Demolition Waste Recycling Considering Green Development Performance under the Chinese Government’s Reward–Penalty Mechanism," IJERPH, MDPI, vol. 17(17), pages 1-21, August.
  • Handle: RePEc:gam:jijerp:v:17:y:2020:i:17:p:6303-:d:406034
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/17/17/6303/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1660-4601/17/17/6303/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bucciol, Alessandro & Montinari, Natalia & Piovesan, Marco, 2019. "It Wasn't Me! Visibility and Free Riding in Waste Disposal," Ecological Economics, Elsevier, vol. 157(C), pages 394-401.
    2. Xingwei Li & Jianguo Du & Hongyu Long, 2019. "Green Development Behavior and Performance of Industrial Enterprises Based on Grounded Theory Study: Evidence from China," Sustainability, MDPI, vol. 11(15), pages 1-19, July.
    3. Nicholas Rivers and Leslie Shiell, 2016. "Free-Riding on Energy Efficiency Subsidies: the Case of Natural Gas Furnaces in Canada," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    4. Jianhong He & Yaling Lei & Xiao Fu, 2019. "Do Consumer’s Green Preference and the Reference Price Effect Improve Green Innovation? A Theoretical Model Using the Food Supply Chain as a Case," IJERPH, MDPI, vol. 16(24), pages 1-15, December.
    5. Xingwei Li & Jianguo Du & Hongyu Long, 2020. "Understanding the Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE): Scale Development and Validation," IJERPH, MDPI, vol. 17(5), pages 1-23, March.
    6. Liming Zhang & Fei Ye & Li Yang & Guichuan Zhou, 2019. "Impact of Political Connections on Corporate Environmental Performance: From a Green Development Perspective," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    7. Peiyang Su & Ying Peng & Qidan Hu & Ruwen Tan, 2020. "Incentive Mechanism and Subsidy Design for Construction and Demolition Waste Recycling under Information Asymmetry with Reciprocal Behaviors," IJERPH, MDPI, vol. 17(12), pages 1-26, June.
    8. Deng Li & Ying Peng & Chunxiang Guo & Ruwen Tan, 2019. "Pricing Strategy of Construction and Demolition Waste Considering Retailer Fairness Concerns under a Governmental Regulation Environment," IJERPH, MDPI, vol. 16(20), pages 1-24, October.
    9. Lai Sheung Au & Seungjun Ahn & Tae Wan Kim, 2018. "System Dynamic Analysis of Impacts of Government Charges on Disposal of Construction and Demolition Waste: A Hong Kong Case Study," Sustainability, MDPI, vol. 10(4), pages 1-17, April.
    10. Xingwei Li & Jianguo Du & Hongyu Long, 2018. "A Comparative Study of Chinese and Foreign Green Development from the Perspective of Mapping Knowledge Domains," Sustainability, MDPI, vol. 10(12), pages 1-30, November.
    11. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    12. Vieira, Castorina Silva & Pereira, Paulo M., 2015. "Use of recycled construction and demolition materials in geotechnical applications: A review," Resources, Conservation & Recycling, Elsevier, vol. 103(C), pages 192-204.
    13. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    14. Hong Shen & Ying Peng & Chunxiang Guo, 2018. "Analysis of the Evolution Game of Construction and Demolition Waste Recycling Behavior Based on Prospect Theory under Environmental Regulation," IJERPH, MDPI, vol. 15(7), pages 1-17, July.
    15. Xuemei Zhang & Qianwen Li & Guohu Qi, 2020. "Decision-Making of a Dual-Channel Closed-Loop Supply Chain in the Context Government Policy: A Dynamic Game Theory," Discrete Dynamics in Nature and Society, Hindawi, vol. 2020, pages 1-19, May.
    16. Hafezi, Maryam & Zolfagharinia, Hossein, 2018. "Green product development and environmental performance: Investigating the role of government regulations," International Journal of Production Economics, Elsevier, vol. 204(C), pages 395-410.
    17. Cătălina Silvia Crișan-Mitra & Liana Stanca & Dan-Cristian Dabija, 2020. "Corporate Social Performance: An Assessment Model on an Emerging Market," Sustainability, MDPI, vol. 12(10), pages 1-21, May.
    18. Olivier Bonroy & Alexis Garapin & Stephen F Hamilton & Diogo M Souza Monteiro, 2019. "Free-riding on Product Quality in Cooperatives: Lessons from an Experiment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(1), pages 89-108.
    19. Ke Fan & Edwin H. W. Chan & C. K. Chau, 2018. "Costs and Benefits of Implementing Green Building Economic Incentives: Case Study of a Gross Floor Area Concession Scheme in Hong Kong," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    20. Fan, Ke & Chan, Edwin H.W. & Qian, Queena K., 2018. "Transaction costs (TCs) in green building (GB) incentive schemes: Gross Floor Area (GFA) Concession Scheme in Hong Kong," Energy Policy, Elsevier, vol. 119(C), pages 563-573.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xingwei Li & Ruonan Huang & Jiachi Dai & Jingru Li & Qiong Shen, 2021. "Research on the Evolutionary Game of Construction and Demolition Waste (CDW) Recycling Units’ Green Behavior, Considering Remanufacturing Capability," IJERPH, MDPI, vol. 18(17), pages 1-32, September.
    2. Xingwei Li & Yicheng Huang & Xiangxue Li & Xiang Liu & Jingru Li & Jinrong He & Jiachi Dai, 2022. "How does the Belt and Road policy affect the level of green development? A quasi-natural experimental study considering the CO2 emission intensity of construction enterprises," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    3. Junwu Wang & Yinghui Song & Wei Wang & Suikuan Wang & Feng Guo & Jiequn Lu, 2022. "Marine Construction Waste Recycling Mechanism Considering Public Participation and Carbon Trading: A Study on Dynamic Modeling and Simulation Based on Sustainability Policy," Sustainability, MDPI, vol. 14(16), pages 1-22, August.
    4. Longfei He & Baiyun Yuan & Junsong Bian & Kin Keung Lai, 2023. "Differential game theoretic analysis of the dynamic emission abatement in low-carbon supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 355-393, May.
    5. Xiaoxiao Geng & Ling Lv & Yingchen Wang & Ran Sun & Xiangmei Wang, 2022. "Evolutionary Game Research on Green Construction Considering Consumers’ Preference under Government Supervision," IJERPH, MDPI, vol. 19(24), pages 1-27, December.
    6. Yanlu Guo & Gongli Luo & Guisheng Hou, 2021. "Research on the Evolution of the Express Packaging Recycling Strategy, Considering Government Subsidies and Synergy Benefits," IJERPH, MDPI, vol. 18(3), pages 1-25, January.
    7. Xiaoman Mu & Suao Lu & Qinyi Li, 2023. "How to Promote the Development of Industrial Wastewater Treatment Technological Innovation in China: A Tripartite Evolutionary Game Analysis," Sustainability, MDPI, vol. 15(21), pages 1-24, October.
    8. Zhang, Yan & Wang, Si-Xia & Yao, Jian-Ting & Tong, Rui-Peng, 2023. "The impact of behavior safety management system on coal mine work safety: A system dynamics model of quadripartite evolutionary game," Resources Policy, Elsevier, vol. 82(C).
    9. Xingwei Li & Jianguo Du & Hongyu Long, 2020. "Mechanism for Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE) Using Partial Least Squares Structural Equation Modeling (PLS-SEM)," IJERPH, MDPI, vol. 17(22), pages 1-19, November.
    10. Hang Yin & Yixiong Huang & Kuiming Wang, 2021. "How Do Environmental Concerns and Governance Performance Affect Public Environmental Participation: A Case Study of Waste Sorting in Urban China," IJERPH, MDPI, vol. 18(19), pages 1-16, September.
    11. Haoxuan Zheng & Xingwei Li & Xiaowen Zhu & Yicheng Huang & Zhili Liu & Yuxin Liu & Jiaxin Liu & Xiangye Li & Yuejia Li & Chunhui Li, 2022. "Impact of Recycler Information Sharing on Supply Chain Performance of Construction and Demolition Waste Resource Utilization," IJERPH, MDPI, vol. 19(7), pages 1-22, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xingwei Li & Ruonan Huang & Jiachi Dai & Jingru Li & Qiong Shen, 2021. "Research on the Evolutionary Game of Construction and Demolition Waste (CDW) Recycling Units’ Green Behavior, Considering Remanufacturing Capability," IJERPH, MDPI, vol. 18(17), pages 1-32, September.
    2. Xingwei Li & Jianguo Du & Hongyu Long, 2020. "Mechanism for Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE) Using Partial Least Squares Structural Equation Modeling (PLS-SEM)," IJERPH, MDPI, vol. 17(22), pages 1-19, November.
    3. Li Wang & Yanhong Lv & Siyu Huang & Yu Liu & Xinrong Li, 2023. "The Evolution of Research on C&D Waste and Sustainable Development of Resources: A Bibliometric Study," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
    4. Xingwei Li & Jingru Li & Yicheng Huang & Jinrong He & Xiang Liu & Jiachi Dai & Qiong Shen, 2022. "Construction enterprises’ adoption of green development behaviors: an agent-based modeling approach," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    5. Xingwei Li & Jinrong He & Yicheng Huang & Jingru Li & Xiang Liu & Jiachi Dai, 2022. "Predicting the factors influencing construction enterprises’ adoption of green development behaviors using artificial neural network," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-12, December.
    6. Yingxia Xue & Fang Liu & Guangbin Wang & Jungang Shao, 2023. "Research on Strategy Evolution of Contractor and Resident in Construction Stage of Old Community Renovation Project," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    7. Lili Ding & Zhimeng Guo & Yuemei Xue, 2023. "Dump or recycle? Consumer's environmental awareness and express package disposal based on an evolutionary game model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6963-6986, July.
    8. Longfei He & Baiyun Yuan & Junsong Bian & Kin Keung Lai, 2023. "Differential game theoretic analysis of the dynamic emission abatement in low-carbon supply chains," Annals of Operations Research, Springer, vol. 324(1), pages 355-393, May.
    9. Qixiang Wang & Linghui Kong & Jin Li & Bangyi Li & Fan Wang, 2020. "Behavioral Evolutionary Analysis between the Government and Uncertified Recycler in China’s E-Waste Recycling Management," IJERPH, MDPI, vol. 17(19), pages 1-15, October.
    10. Lin, Chun Liang & Chan, Edwin H.W. & Chiang, Wei-Hwa, 2022. "Urban renewal governance and manipulation of plot ratios: A comparison between Taipei, Hong Kong and, Singapore," Land Use Policy, Elsevier, vol. 119(C).
    11. Haoxuan Zheng & Xingwei Li & Xiaowen Zhu & Yicheng Huang & Zhili Liu & Yuxin Liu & Jiaxin Liu & Xiangye Li & Yuejia Li & Chunhui Li, 2022. "Impact of Recycler Information Sharing on Supply Chain Performance of Construction and Demolition Waste Resource Utilization," IJERPH, MDPI, vol. 19(7), pages 1-22, March.
    12. Xingwei Li & Jianguo Du & Hongyu Long, 2020. "Understanding the Green Development Behavior and Performance of Industrial Enterprises (GDBP-IE): Scale Development and Validation," IJERPH, MDPI, vol. 17(5), pages 1-23, March.
    13. Dooho Lee, 2020. "Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop Supply Chain under Different Power Structures," IJERPH, MDPI, vol. 17(7), pages 1-26, March.
    14. Yuan Wu & Jin Zhang & Shoulin Liu & Lianrui Ma, 2022. "Does Government-Led Publicity Enhance Corporate Green Behavior? Empirical Evidence from Green Xuanguan in China," Sustainability, MDPI, vol. 14(6), pages 1-32, March.
    15. Yanmin Ouyang & Haoran Zhao, 2022. "Evolutionary Game Analysis of Collaborative Prevention and Control for Public Health Emergencies," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    16. Hongge Zhu & Zhenhuan Chen & Shaopeng Zhang & Wencheng Zhao, 2022. "The Role of Government Innovation Support in the Process of Urban Green Sustainable Development: A Spatial Difference-in-Difference Analysis Based on China’s Innovative City Pilot Policy," IJERPH, MDPI, vol. 19(13), pages 1-19, June.
    17. Tinggui Chen & Yuling Zhang & Jianjun Yang & Guodong Cong & Guozhang Jiang & Gongfa Li, 2021. "Behavior Strategy Analysis Based on the Multi-Stakeholder Game under the Plastic Straw Ban in China," IJERPH, MDPI, vol. 18(23), pages 1-33, December.
    18. Jianguo Du & Jing Zhang & Xingwei Li, 2020. "What Is the Mechanism of Resource Dependence and High-Quality Economic Development? An Empirical Test from China," Sustainability, MDPI, vol. 12(19), pages 1-17, October.
    19. Yung Yau & Huiying (Cynthia) Hou & Ka Chi Yip & Queena Kun Qian, 2021. "Transaction Cost and Agency Perspectives on Eco-Certification of Existing Buildings: A Study of Hong Kong," Energies, MDPI, vol. 14(19), pages 1-20, October.
    20. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:17:y:2020:i:17:p:6303-:d:406034. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.