Green Independent Innovation or Green Imitation Innovation? Supply Chain Decision-Making in the Operation Stage of Construction and Demolition Waste Recycling Public-Private Partnership Projects

Abstract

Inefficiencies in the construction and demolition waste (CDW) recycling supply chain constrain green innovation in the construction industry. However, existing studies have not analyzed the innovation behavior of recyclers in CDW recycling public-private partnership (PPP) projects from the perspective of innovation diffusion theory. To reveal the mechanism of recyclers’ innovation behavior in CDW recycling PPP projects in which recyclers and remanufacturers jointly participate in the operation stage, this study uses a Stackelberg game to analyze the optimal innovation strategy choice and total profit of the CDW recycling supply chain among the two innovation paths of green independent innovation and green imitation innovation under the combined effects of technology spillover, consumer green sensitivity, and government price subsidies to consumers. The main conclusions are as follows. (1) Remanufacturers and recyclers can improve their own innovation level and profit through technology spillover. (2) The total profit of the CDW recycling supply chain changes dynamically with the level of spillover. (3) The government price subsidy to consumers does not always improve the total profit of the CDW recycling supply chain. (4) The effect of consumers’ green sensitivity on the total profit of the CDW recycling supply chain shows heterogeneity with the innovation path of recyclers and the level of technological spillover. This study not only enriches the theoretical study of the green supply chain but also provides a basis for decision-making for recyclers and governments in practice.