Research On Cost Compensation Model For Construction And Demolition Waste Management

As one of the major fixed asset formation sectors and corner-stone industries in thenational economic system of China, the building sector is undergoing rapid development.Along with this,a lot of new construction and demolition and relocation projects produce hugequantities of construction and demolition waste (C&D waste); thus, on one hand, naturalresources are not used intensively, on the other hand, the waste pollutes the ecologicalenvironment.In China, the present handling methods are still those traditional ones, dumplandfill or open-air stacking. Since the C&D waste management is not serious enough, thereappears to be many poblems, such as unreliable C&D waste management system, insufficientfund input, the lack of policy support and guide, and so on.Many countries have putconstruction wastes reuse into the national focus and support policies range, and give certainpreferential policies in terms of the corresponding scientific research, waste dischargereduction, fees charge, and economic compensation and so on.However, C&D waste disposalcharge in China is too low and lack economic incentives. This is hard to arouse theenthusiasm in developers for circulation and utilization of C&D waste. Thus, the recyclingutilization rate of C&D waste is low.Therefore, this paper mainly aims at the problems ofC&D waste management mentioned above, especially the problems of economic policies,taking the Pearl River Delta Region of China as a case, estimating the waste production in theprocess of new construction and demolition projects during the whole construction, analyzingits waste management costs, establishing a cost compensation model and making systemsimulation for it. And on the basis of all the above, the paper forwards new ideas on C&Dwaste management cost compensation mechanism in China. The main results of this paper areas follows:(1) Measured and calculated the C&D waste management costs. The paper has measuredand calculated the costs of three typical ways of C&D waste management,which are LandfillDisposal, Recycle and Reuse, in Pearl River Delta Region. The results show that recyclingmanagement costs minimum under the same conditions.(2) Proposed a C&D waste estimation model which has been used in a brick constructionproject, and the estimation results show that the new construction projects produce C&Dwaste0.34m3per square meter of construction area (having considered the earthwork), andthe most waste production comes from projects such as earthwork, scrap concrete and wastebrick block. The model estimated that demolition residential project volume5.75times thesize of waste for new construction projects. The article puts forward a cost compensation management model on the basis of the C&D waste estimation model. The model proposes toestablish cash deposit in advance and the cost of capital compensation to ensure that thewastes production stakeholders to deal with C&D waste in the most appropriate ways.(3) Developed a costs compensation econometric model of C&D waste managementbased on the WTP (Willingness-To-Pay). Firstly, the paper has taken the contractor’s overallcharacteristic Registered on the Pearl River delta region as an example, studied the WTP ofcontractors for C&D waste management costs, decision factors affecting their WTP. Secondly,a multivariate linear regression model of C&D waste management costs based on WTP hasbeen established. Thirdly, on the basis of the multiple linear regression model, the paper hasset up a costs compensation econometric model of C&D waste management. At last,according to the compensation model and the calculated result of three typical ways of C&Dwaste management costs, the paper has determined a cost compensation standard of differentways of C&D waste management for the government in Pearl River Delta Region.(4) Developed a Cost-benefit Analysis model of C&D waste management based onsystem dynamics. The paper has proposed some assumptions according to theoretical analysis,respectively analyzed costs and benefits of the whole C&D waste management process fromthe contractor and the social environment, and carried on the simulation of positive andnegative two economic measures such as economic subsidies and punishment impacts onCost-benefit of contractors and social environment. Then, in order to deal with C&D wastemanagement problem with object-oriented processing measures, the paper has proposed thatthe Chinese government should adopt the strategy of combining subsidies with punishment inthe present stage.(5) Proposed a Cost Compensation Mechanism on C&D waste management, which is aninnovative idea including the guiding ideology, the elements of design, process design andsafeguard link such as funding, laws, organizations. Take Guangzhou as an example, thepaper has designed a cost compensation mechanism of C&D waste management, and hascarried on the detailed planning for the expected benefit of this mechanism. In order to furtherillustrate the usefulness of C&D waste management cost compensation theory, the paper hastaken new engineering projects for the cost compensation analysis example, analysis resultsshow that the practical and effective of cost compensation mode, to a certain extent reduce thecost of the contractor, professional processing business pressure, improve their firms’ profit,promoting the construction waste resource utilization.Thesis research results which further perfect C&D waste management theory havecertain innovative contributions. It not only provides the theory basis for economic compensation related law, policy on C&D waste management which is formulated by theChinese government, but also promote the professional construction waste disposal and wastetreatment and other emerging industry development and the formation of the industrial chain.What’s more, realize the sustainable development of strategic objectives for the constructionindustry.