Environmental Science and Pollution Research

, Volume 26, Issue 14, pp 13773–13784 | Cite as

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

  • Jingkuang LiuEmail author
  • Yue Teng
  • Yuhan Jiang
  • Enqin Gong
Sustainable Environmental Management


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.


C&D waste management Cost compensation model Full-cost accounting 



The author would like to acknowledge the valuable suggestions of the editor and three anonymous reviewers. The authors would also like to thank Jiawen Zhou for his assistance during the data collection process.

Funding information

The research was supported by the National Natural Science Foundation of China (71501052).


  1. Aleluia J, Ferrão P (2017) Assessing the costs of municipal solid waste treatment technologies in developing Asian countries. Waste Manag 69:592–608. CrossRefGoogle Scholar
  2. Antheaume N (2004) Valuing external costs - from theory to practice: implications for full cost environmental accounting. Eur Account Rev 13(3):443–464. CrossRefGoogle Scholar
  3. Begum RA, Chamhuri S, Pereira JJ, Jaafar AH (2006) A benefit-cost analysis on the economic feasibility of construction waste minimisation: the case of Malaysia. Conserv Recycl 48:86–98. CrossRefGoogle Scholar
  4. Begum RA, Chamhuri S, Pereira JJ, Jaafar AH (2007) Factors and values of willingness to pay for improved construction waste management—a perspective of Mala contractors. Waste Manag 27(12):1902–1909. CrossRefGoogle Scholar
  5. Calvo N, Varela-Candamio L, Novo-Corti MI (2014) A dynamic model for construction and demolition (C&D) waste management in Spain: driving policies based on economic incentives and tax penalties. Sustainability 6:416–435. CrossRefGoogle Scholar
  6. Chifari R, Piano SL, Matsumoto S, Tasak T (2017) Does recyclable separation reduce the cost of municipal waste management in Japan? Waste Manag 60:32–41. CrossRefGoogle Scholar
  7. China Association of Environmental Protection Industry (CAEPI) (2009) Green bricks made by construction waste is a best way to solve Guangzhou city garbage problem, Guangzhou, China, Available from
  8. D’Onza G, Greco G, Allegrini M (2016) Full cost accounting in the analysis of separated waste collection efficiency: a methodological proposal. J Environ Manag 167:59–65. CrossRefGoogle Scholar
  9. Debnath S, Bose SK (2014) Exploring full cost accounting approach to evaluate cost of MSW services in India. Resour Conserv Recycl 83:87–95. CrossRefGoogle Scholar
  10. Ding ZK, Yi GZ, Tam VWY, Huang TY (2016) A system dynamics-based environmental performance simulation of construction waste reduction management in China. Waste Manag 51:130–141. CrossRefGoogle Scholar
  11. Guangzhou City Management Committee (CMC), Guangzhou City Housing and Urban and Rural Construction Committee(GCHURCC), Guangzhou City Bureau of Finance(GCBF) 2015 The tentative management measures for financial subsidies of Guangzhou city construction waste comprehensive utilization. Retrieved from:
  12. Hao JL, Hills MJ, Huang T (2007) A simulation model using system dynamic method for construction and demolition waste management in Hong Kong. Constr Innov 7:7–21. CrossRefGoogle Scholar
  13. Hao JL, Hills MJ, Tam VWY (2008) The effectiveness of Hong Kong's construction waste disposal charging scheme. Waste Manag Res 26(6):553–558. CrossRefGoogle Scholar
  14. Herbohn K (2005) A full cost environmental accounting experiment. Account Organ Soc 30:519–536. CrossRefGoogle Scholar
  15. Hu MM, Zhou MC (2018) Research on the economic benefits and countermeasures of construction waste on-site sorting during the construction process: a case of Chongqing. Constr Econ 6:108–113. Google Scholar
  16. Hu MM, He Q, Shi SY, Qi DD (2011) Cost analysis of construction and demolition waste management: case of Chongqing. Constr Econ 4:93–97. Google Scholar
  17. Hu G, Jiang H, Xu ZB (2016a) Exploitation and utilization of construction waste from the perspective of urban mineralization: case of Guangzhou. City Problem 1:47–57. Google Scholar
  18. Hu MM, Wu JB, Shi SY, Liu TT, Zhang CB (2016b) Eco-efficiency study of urban construction and demolition waste treatment: a case study of Chongqing. Constr Econ 37(6):82–87. Google Scholar
  19. Huang BJ, Wang XY, Kua H, Geng Y, Bleischwitz R, Ren JZ (2018) Construction and demolition waste management in China through the 3R principle. Resour Conserv Recycl 129:36–44. CrossRefGoogle Scholar
  20. Jacobsen R, Buysse J, Gellynck X (2013) Cost comparison between private and public collection of residual household waste: multiple case studies in the Flemish region of Belgium. Waste Manag 33:3–11. CrossRefGoogle Scholar
  21. Jin RY, Li B, Zhou TY, Wanatowski D, Piroozfar P (2017) An empirical study of perceptions towards construction and demolition waste recycling and reuse in China. Resour Conserv Recycl 126:86–98. CrossRefGoogle Scholar
  22. Karagiannidis A, Xirogiannopoulou A, Tchobanoglous G (2008) Full cost accounting as a tool for the financial assessment of pay-as-you-throw schemes: a case study for the Panorama municipality, Greece. Waste Manag 28:2801–2808. CrossRefGoogle Scholar
  23. Lim M (2011) Full cost accounting in solid waste management: the gap in the literature on newly industrialised countries. J Appl ManagAccount Res 9(1):21–36Google Scholar
  24. Liu JK (2013) Research on cost compensation model for construction and demolition waste management. Guangzhou: South China University of Technology. Ph.D. ThesisGoogle Scholar
  25. Liu JK, Wang YS (2012) A model for quantification of construction waste in new residential buildings in pearl river delta of China. Open Constr Build Technol J 6:398–403. CrossRefGoogle Scholar
  26. Liu JK, Wang YS (2013a) Cost analysis of construction and demolition waste management: case study of the Pearl River Delta of China. Open Constr Build Technol J 7:251–257. CrossRefGoogle Scholar
  27. Liu JK, Wang YS (2013b) Research on the management expense of C&D waste based on WTP—the Pearl River Delta perspective. J Eng Manag 27(16):46–50Google Scholar
  28. Liu JK, Wang YS, Zhang WJ, Zheng ZT (2014) Cost-benefit analysis of construction and demolition waste management based on system dynamics: a case study of Guangzhou. Syst Eng Theory Pract 34:1480–1490Google Scholar
  29. Liu JK, Pang YS, Wang D, Zhou JW (2017) An empirical investigation of construction and demolition waste management in China’s Pearl River Delta. In: Proceedings of the 21th International Symposium on Advancement of Construction Management and Real Estate. Springer 197–212.
  30. Lu WS, Yuan HP, Li JR, Hao JL, Mi XM, Ding ZK (2011) An empirical investigation of construction and demolition waste generation rates in Shenzhen city, South China. Waste Manag 31:680–687. CrossRefGoogle Scholar
  31. Lu WS, Peng Y, Webster C, Zuo J (2015) Stakeholders’ willingness to pay for enhanced construction waste management: a Hong Kong study. Renew Sust Energ Rev 47:233–240. CrossRefGoogle Scholar
  32. Pang YS, Yang L (2006) Building rubbish reclamation management research. Build Sci 22:77–79Google Scholar
  33. Parthan SR, Milke MW, Wilson DC, Cocks JH (2012a) Cost estimation for solid waste management in industrializing regions – precedents, problems and prospects. Waste Manag 32:584–594. CrossRefGoogle Scholar
  34. Parthan SR, Milke MW, Wilson DC, Cocks JH (2012b) Cost function analysis for solid waste management: a developing country experience. Waste Manag Res 30:485–491. CrossRefGoogle Scholar
  35. Poon CS, Yu ATW, Ng LH (2001) On-site sorting of construction and demolition waste in Hong Kong. Resour Conserv Recycl 32:157–172. CrossRefGoogle Scholar
  36. Solís-Guzmán J, Marrero M, Montes-Delgado MV, Ramírez-de-Arellano A (2009) A Spanish model for quantification and management of construction waste. Waste Manag 29:2542–2548. CrossRefGoogle Scholar
  37. Tam VWY (2007) Economic comparison of concrete recycling: a case study approach. Resour Conserv Recycl 52:821–828. CrossRefGoogle Scholar
  38. Tam VWY, Tam CM (2008) Waste reduction through incentives: a case study. Build Res Inf 36(1):37–43. CrossRefGoogle Scholar
  39. Tam VWY, Li J, Cai H (2014) System dynamic modeling on construction waste management in Shenzhen, China. Waste Manag Res 32:441–453. CrossRefGoogle Scholar
  40. The office of Guangdong Province Construction Cost Management (OGPCCM) (2010) Comprehensive quota of Guangdong Province architectural engineering and fitting decoration project. China Plan Publishing Company, BeijingGoogle Scholar
  41. United States Environmental Protection Agency (USEPA) (1996) Making solid (waste) decisions with full cost accounting. EPA530-K-96-001. US EPA, Office of Solid Waste Management Response, JuneGoogle Scholar
  42. United States Environmental Protection Agency (USEPA) (1997) Full cost accounting for municipal solid waste management: a handbook. EPA530-R-95-041 US EPA, Office of Solid Waste Management Response, SeptemberGoogle Scholar
  43. Wang LC, Zhao YC (2004) Reclamation management of construction waste in China. Chemical Industry Press, BeijingGoogle Scholar
  44. Wang JY, Kang XP, Shen LY, Tan YE (2004) Study of construction waste minimization management. J Huazhong Univ Sci Technol (Urban Science) 21:26–27Google Scholar
  45. Wang JY, Yuan HP, Kang XP, Lu WS (2010) Critical success factors for on-site sorting of construction waste: a China study. Resour Conserv Recycl 54:931–936. CrossRefGoogle Scholar
  46. Wang YS, Zhou JW, Zhan Y (2011) Investigation and analysis on minimization and reclamation of construction waste in Guangzhou. China Eng Manag Forum 2011, Changsha, China 2:470–476Google Scholar
  47. Wang JY, Li ZD, Wang XF (2012) Economic cost estimation of C&D waste based on system dynamics. Constr Econ 8:95–98. Google Scholar
  48. Wimalasena S (2011) A planning tool for construction waste management. University of Calgary, Ph.D. Thesis, CalgaryGoogle Scholar
  49. Wimalasena S, Ruwanpura J, Hettiaratchi JPA (2010) Modeling construction waste generation towards sustainability. Proceedings of the 2010 Construction Research Congress (CRC), Banff, Alberta, Canada 1498–1507.
  50. Yang H, Xia JQ, Thompson JR, Flower RJ (2017) Urban construction and demolition waste and landfill failure in Shenzhen, China. Waste Manag 63:393–396. CrossRefGoogle Scholar
  51. Ye G, Yuan HP, Shen LY, Wang HX (2012) Simulating effects of management measures on the improvement of the environmental performance of construction waste management. Resour Conserv Recycl 62:56–63. CrossRefGoogle Scholar
  52. Yuan HP, Hao JL (2008) Implementing of construction waste reduction strategies in Shenzhen. The CRIOCM 2008 international symposium on advancement of construction management and real estate 361–366Google Scholar
  53. Yuan HP, Wang JY (2014) A system dynamics model for determining the waste disposal charging fee in construction. Eur J Oper Res 237:988–996. CrossRefGoogle Scholar
  54. Zhao W, Leeftink RB, Rotterc VS (2010) Evaluation of the economic feasibility for the recycling of construction and demolition waste in China-the case of Chongqing. Resour Conserv Recycl 54:377–389. CrossRefGoogle Scholar
  55. Zhao W, Ren H, Rotter VS (2011) A system dynamics model for evaluating the alternative of type in construction and demolition waste recycling center-the case of Chongqing, China. Resour Conserv Recycl 55:933–944. CrossRefGoogle Scholar
  56. Zhou JW (2011) A survey analysis and countermeasures of C&D waste problem in South China. Master thesis of South China University of Technology,Guangzhou, ChinaGoogle Scholar
  57. Zhu JL, Li JR (2011) Investigation the influencing factors of construction workers waste minimization behavior: the Shenzhen case. J Eng Manag 25:633–637Google Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.School of ManagementGuangzhou UniversityGuangzhouPeople’s Republic of China
  2. 2.Construction and Environmental EngineeringMarquette UniversityMilwaukeeUSA

Personalised recommendations