Cross-jurisdictional construction waste material trading: Learning from the smart grid

Abstract

Construction waste materials are resources misplaced. Trading them across different jurisdictions is an innovative way to reuse or recycle the materials, which in turn obtains “cleaner production” in the construction sector. It can achieve a win-win situation between the demand and supply sides, but several hurdles must be overcome first. A particular hurdle is that demand and supply of such materials arises sporadically in discrete sites, thereby matching the two sides is not always opportune. We find parallels in the energy sector, where smart grids have been developed to store power generated sporadically by small producers and distribute it to individual users based on their (erratic) needs. Learning from smart grids, this research aims to shed light on innovative institutional arrangements promoting the development of an effective cross-jurisdictional construction waste material trading market. Underpinning this research is a mixed-method approach including cross-sectoral learning and a case study encompassing a series of site visits and semi-structured interviews in China’s Greater Bay Area. By comparing the commonalities between electricity and construction waste in terms of production, market, transmission, distribution, and consumption, we elaborate smart grid innovations and their possible applications to construction waste materials trading. Our research contributes to the body of knowledge on waste management, the circular economy, and the sharing economy. It will help establish a cross-jurisdictional waste material trading market in the Greater Bay Area. It also provides useful references to other regions in searching solutions for waste trading/sharing.