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System Dynamic Analysis of Impacts of Government Charges on Disposal of Construction and Demolition Waste: A Hong Kong Case Study

Author

Listed:
  • Lai Sheung Au

    (Arcadis Hong Kong Limited, 38/F AIA Kowloon Tower, 100 How Ming Street, Kwun Tong, Kowloon, Hong Kong, China)

  • Seungjun Ahn

    (School of Natural and Built Environments, University of South Australia, BJ Bld, City East Campus, Adelaide, SA 5001, Australia)

  • Tae Wan Kim

    (Division of Architecture and Urban Design, Incheon National University, 119 Academy-ro, Yeonsu-gu, Incheon 22012, Korea)

Abstract

With the purpose of reducing the amount of construction and demolition (C&D) waste disposed to landfills, many countries and municipalities have introduced increasingly stringent C&D waste disposal charges (CDWDC) but the level of CDWDC is often determined without a clear understanding of its broad and complex impacts. Against this background, this paper aims to propose a system dynamics (SD) model that can help predict CDWDC’s environmental implications as well as its financial implications. Specifically, the proposed model explains complex causal relationships between variables such as the level of CDWDC, the amount of C&D waste disposed to landfills, the government’s revenues from CDWDC as well as the costs of supplying and operating landfills over time. For a case study, the developed model is customized and calibrated with actual data from Hong Kong, where the remaining capacities of existing landfills are limited and the need for supplying more landfills is imminent. The simulation analysis with the model predicts that the current charging levels may not be high enough to effectively control the amount of C&D waste disposed to landfills or to compensate for the costs to the government of supplying additional landfills. The analysis also predicts how much illegal dumping may increase as the level of CDWDC increases. This case study illustrates that the proposed SD model can help policy makers to see the potential impacts of increased CDWDC on the amount of C&D waste disposed to landfills, government costs and the amount of illegal dumping of C&D waste; and can therefore help them to determine the most appropriate level of CDWDC.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1077-:d:139596
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    References listed on IDEAS

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    1. Yuan, Hongping & Wang, Jiayuan, 2014. "A system dynamics model for determining the waste disposal charging fee in construction," European Journal of Operational Research, Elsevier, vol. 237(3), pages 988-996.
    2. Nuria Calvo & Laura Varela-Candamio & Isabel Novo-Corti, 2014. "A Dynamic Model for Construction and Demolition (C&D) Waste Management in Spain: Driving Policies Based on Economic Incentives and Tax Penalties," Sustainability, MDPI, vol. 6(1), pages 1-20, January.
    3. Yi Peng & Weisheng Lu & Ke Chen, 2015. "Disparity of Willingness-to-Pay and Ought-to-Pay for Construction Waste in Hong Kong: A Conceptual Model," Springer Books, in: Liyin Shen & Kunhui Ye & Chao Mao (ed.), Proceedings of the 19th International Symposium on Advancement of Construction Management and Real Estate, edition 127, chapter 0, pages 823-833, Springer.
    4. Lu, Weisheng & Peng, Yi & Webster, Chris & Zuo, Jian, 2015. "Stakeholders’ willingness to pay for enhanced construction waste management: A Hong Kong study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 233-240.
    5. Qudrat-Ullah, Hassan & Seong, Baek Seo, 2010. "How to do structural validity of a system dynamics type simulation model: The case of an energy policy model," Energy Policy, Elsevier, vol. 38(5), pages 2216-2224, May.
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    Cited by:

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    2. 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.
    3. Qidan Hu & Ying Peng & Chunxiang Guo & Dong Cai & Peiyang Su, 2019. "Dynamic Incentive Mechanism Design for Recycling Construction and Demolition Waste under Dual Information Asymmetry," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    4. Zezhou Wu & Kaijie Yang & Xiaofan Lai & Maxwell Fordjour Antwi-Afari, 2020. "A Scientometric Review of System Dynamics Applications in Construction Management Research," Sustainability, MDPI, vol. 12(18), pages 1-16, September.
    5. Zhikun Ding & Wenyan Gong & Shenghan Li & Zezhou Wu, 2018. "System Dynamics versus Agent-Based Modeling: A Review of Complexity Simulation in Construction Waste Management," Sustainability, MDPI, vol. 10(7), pages 1-13, July.
    6. Zhikun Ding & Mengjie Shi & Chen Lu & Zezhou Wu & Dan Chong & Wenyan Gong, 2019. "Predicting Renovation Waste Generation Based on Grey System Theory: A Case Study of Shenzhen," Sustainability, MDPI, vol. 11(16), pages 1-13, August.

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