Dynamic Incentive Mechanism Design for Recycling Construction and Demolition Waste under Dual Information Asymmetry

Abstract

The generation of construction and demolition waste (CDW) is a problem for societies aspiring to sustainability. In this regard, governments have the responsibility to support the CDW recycling through subsidies. However, the information asymmetry, as well as the “dynamic nature” of the CDW recycling market, results in a number of barriers for the government to promote CDW recycling. In this paper, we establish a mathematical model that includes the government and the recycling enterprise in the presence of dual information asymmetry including the unknown recycling technology level and unobservable recycling efforts in one-stage and two-stage cooperation. Using the incentive theory, the static and dynamic optimal recycling incentive contracts of the government were designed, and the optimal decisions of the recycler were identified. A numerical simulation revealed that by designing reasonable contracts, the government can encourage the recycler to report the true technical level and achieve information screening. Furthermore, the subsidy of the high-tech recycler remained unchanged under different circumstances. However, the subsidy of the low-tech recycler was closely related to the probability of misreporting and the proportion of technology types. This finding suggests that the government and recycler are inclined towards long-term dynamic cooperation.

Product Design for Automated Remanufacturing—A Case Study of Electric and Electronic Equipment in Sweden

“…Recent product design and development have been inspired by several frameworks, such as design for X [27,28], design for the environment [29,30], design for disassembly [31,32], ecodesign [33][34][35] and design for recycling [36,37]. Previous studies have also focused on the design of remanufacturing frameworks [11,38].…”

“…Modular design [49] is also critical here where parts that need to be exchanged or repaired should be placed into one single module, thus lowering the effort needed to repair/exchange parts. Those parts that will not continue the journey to the next new lifecycle have to be designed for recycling [36,37].…”

Recycling and Upcycling in the Practice of Waste Management of Construction Giants

“…This may be due to the creation of income from the sale of materials, the formation of a waste-free construction site in order to save space, etc. The use of recycling contributes to a positive reputation for a company, which is very important for the construction giants that operate in international markets [34].…”

Circularity Evaluation of Alternative Concepts During Early Product Design and Development

“…Conversely, design for X [21,22] focuses on some different environmental aspects of product design, such as lifecycle issues, disassemblability, and recyclability, to create products with specific qualities. There are several other frameworks within DfX, including design for sustainability, which aims to create more sustainable products by focusing on product characteristics for preventing obsolescence (e.g., upgrade, repair and refurbish) and on design for closing loops (e.g., design for recycling) [7,23]; design for environment [24,25], which relates to reducing the harmful ecological impacts of products in terms of the toxicity and hazardousness of substances and emissions; design for disassembly [26,27], which mainly relates to reducing the number of components in a product, minimizing disassembly time, and increasing efficiency; design for remanufacturing [28,29], which relates to the nondestructive dismantling and reassembly of components of a product via interchangeability and modular design; and design for recycling [30,31], which relates to facilitating recycling processes, e.g., shredding and sorting via modular design and simple mechanical dismantling. These are highly relevant in the context of circular product design.…”