Considering Consumers’ Green Preferences and Government Subsidies in the Decision Making of the Construction and Demolition Waste Recycling Supply Chain: A Stackelberg Game Approach

Abstract

Resource utilization of construction and demolition waste (CDW) is regarded to be an important means of achieving the sustainable development of the economy and the environment. However, previous research has not fully considered the green degree of products in the demand function of CDW remanufactured products. This study aimed to clarify how consumers’ green preferences and government subsidies affect decision making in the supply chain. First, a CDW resource utilization supply chain model composed of building materials manufacturers and retailers was constructed using consumer behavior theory. Second, the optimal decision making of members under conditions of decentralized and centralized decision making was analyzed using the Stackelberg game solution. Finally, the validity of the model and conclusions were verified by numerical simu-lation. The main conclusions are as follows. Government subsidies have a different impact on the pricing of new building materials products and CDW remanufactured products. Under decentralized decision making, the optimal profit of the CDW resource utilization supply chain with government subsidies is higher. However, under centralized decision making, the optimal profit is also related to consumers’ green preferences. According to consumers’ green preferences, choosing different decision-making models can not only improve the total profit of the CDW resource utilization supply chain, but also improve the reuse rate of CDW.