A cost compensation model for construction and demolition waste disposal in South China

Construction and demolition waste (C&D waste) is a worldwide issue that concerns the sustainable development of the construction industry. In this paper, detailed formulas are listed for calculating the costs of four typical kinds of disposal routes of C&D waste. They are illegal dumping, controlled dumping (landfill), centralized recycling, and on-site recycling. Through the specific formulas, the costs of the new construction project in Guangzhou are also estimated. Then, a cost compensation model of construction waste disposal is constructed, which serves to calculate the amount of compensation that the government shall make to the contractor’s disposal cost. The results of this study include the following: (1) steps taken to ensure the appropriate measures for C&D waste disposal sites and recycling centers; (2) the on-site recycling will become the future trend of C&D waste disposal due to its lowest cost; (3) the brick cement mortar and scattered concrete take a relatively larger proportion in the total C&D waste generated during the new construction project, and their disposal costs are higher; (4) we find that the cost of illegal dumping is the lowest among four varieties of waste treatment options if only the direct cost of waste treatment is taken account. However, the cost of on-site recycling becomes the lowest if the total cost is considered; (5) according to the case study, the full estimated cost of construction waste disposal is 9074.56 CNY and the total cost compensation is 15,084.21 CNY. The amount of compensation is greater than the disposal cost and contractors make a profit, thus stimulating them to recycle and reuse construction waste. Based on the empirical findings, we make several policy proposals. The research puts forward some operational advice as a reference for decision-makers of C&D waste management.