This study aims to explore the market factors of carbon trading in the Australian construction industry and further develops an index for overall market factor level.
Thirty market factors were identified from literature and ranked by experts in an expert forum. Fuzzy synthetic evaluation was used in developing the market index. Analyses were conducted using statistical package for social sciences version 27 and R software.
Factor analysis was used to cluster the factors into five components, and they were used as the input variables for fuzzy analysis. The respective components were: gross domestic product factors, demand for carbon credits factors, profits and energy gap factors, trading factors and transaction costs factors.
The index developed can exist as a multidimensional framework for measuring market factors that relate to carbon trading in construction projects. For stakeholders and policymakers, the market model serves as a guide for the critical market factors to prioritise in carbon trading projects.
