Although blockchain has the potential to enhance governments’ ability to oversee and streamline the recycling process of construction and demolition waste (CDW), significant challenges remain, including the externality effects and high costs that discourage construction enterprises (CEs) from adopting on-site sorting practices. This paper seeks to address these issues by designing a robust subsidy policy that incentivizes CEs to engage in on-site sorting, considering both traditional and blockchain-enabled CDW recycling models. Through this approach, the paper aims to provide a practical framework for overcoming the barriers to effective CDW management and promoting sustainable practices within the construction industry.
This study constructs four differential game models to capture the dynamic evolution of the CDW recycling rate, contingent upon whether the government implements blockchain and subsidy policies. By systematically comparing these models and utilizing numerical simulations, this paper derives key insights into the effectiveness of various policy configurations in influencing recycling behaviors.
(1) When the government implements both blockchain and subsidy policies, CEs’ efforts in on-site sorting are maximized. (2) Under the traditional recycling model, subsidy policies have a limited positive impact on enterprise profits and social welfare. However, the integration of blockchain significantly amplifies the positive effects of these subsidies. (3) The reduction coefficient of remanufacturing costs influences the extent to which blockchain adoption alleviates the pressure on subsidy funding, with varying degrees of impact.
Theoretically, this paper investigates the combined impact of blockchain technology and subsidy policies on the on-site sorting behavior of CEs. Additionally, it unveils the dynamic interplay between government welfare and enterprise profits through a differential game framework. From a practical standpoint, the paper underscores the significant potential of integrating blockchain with subsidy policies to foster more effective CDW recycling, offering valuable theoretical insights to guide government policy formulation.
