Interactive decisions of the waste producer and the recycler in construction waste recycling

Implementing construction and demolition waste (C&D waste) recycling is identified as significant for waste minimization and natural resources conservation. However, previous studies have not distinguished two typical waste recycling market scenarios (i.e., being shortage or glut of C&D waste recycling processing capacity) when investigating waste recycling issues; in the meanwhile, very limited studies have focused on examining stakeholders’ decision interactions and their impacts on waste recycling. This study thus aims to address these research gaps through investigating the profits of two stakeholders (i.e., the waste producer and the recycler) in C&D waste recycling under different market scenarios by considering the two stakeholders’ interactive decisions. In each of the waste recycling market scenarios, environmental impacts regarding C&D waste recycling are examined considering the foremost incentive for the government to enhance C&D waste recycling is minimization of environmental impacts. Game theory is utilized to investigate the interplay between the waste producer and the recycler in C&D waste recycling, as well as to examine the profits of the two stakeholders under the two market scenarios. We find that in both of the waste recycling market scenarios, the profits of the recycler always decrease in the rate of disposed waste and the investment cost coefficient; in the meanwhile, the recycler can always obtain more profits when its waste processing capacity is insufficient to handle the generated C&D waste. If the investment cost coefficient is relatively higher, a “win-win” situation for obtaining benefits can be achieved for both the waste producer and the recycler. The comparison of environmental impacts in the two waste recycling market scenarios reveals the optimal market scenario having more environmentally friendly advantages. To our best knowledge, this study is the first attempt to analyze the dynamic interactions of the waste producer and the recycler in C&D waste by differentiating the market scenarios. It is anticipated that the research outcomes could be valuable by not only contributing to existing C&D waste management body of knowledge, but also providing managerial insights about how stakeholders can be encouraged to promote C&D waste recycling.