Waste Management 127 (2021) 158–167

Contents lists available at ScienceDirect

Waste Management
journal homepage: www.elsevier.com/locate/wasman

Spatial autocorrelation, influencing factors and temporal distribution of

the construction and demolition waste disposal industry
Haizi Wang, Xinming Pan ⇑, Shibin Zhang
School of Management Engineering, Shandong Jianzhu University, PR China

a r t i c l e i n f o a b s t r a c t

Article history: The construction and demolition waste disposal industry plays a vital role in improving the utilisation
Received 1 December 2020 rate of construction and demolition waste worldwide, however, too little work has been devoted to
Revised 3 April 2021 the industrial economic analysis. To explore the economic pattern and promote the development of
Accepted 9 April 2021
the construction and demolition waste disposal industry, the spatial autocorrelation and influencing fac-
Available online 1 May 2021
tors were analysed, and a temporal development process was evaluated. Spatial measurement results
show that the spatial autocorrelation of the construction and demolition waste disposal industry is sig-
Keywords:
nificant at a 1% level. Per capita GDP, annual yield of construction and demolition waste, research and
Construction and demolition management
Disposal industry
development level, transportation development level, human capital and education level positively affect
Spillover effects the construction and demolition waste disposal industry. Conversely marketisation level negatively influ-
Spatial Durbin model ences the development of the construction and demolition waste disposal industry. Temporal analysis
Time-series analysis results reveal that development of the construction and demolition waste disposal industry accelerated
significantly in 2016 and increasing by 35.79% because of a policy stimulus. Suggestions on regional man-
agement plans and targeted policies for special cities were proposed. A novel perspective for investigating
the C&D waste disposal industry was developed, which may be very helpful for researchers from other
countries to study the agglomeration effect in various waste disposal industries. The findings can con-
tribute to the development plan of the C&D waste disposal industry, and be of value to investors to make
investment and site planning.
Ó 2021 Elsevier Ltd. All rights reserved.

1. Introduction With globalization and interdependence of individual national

Urban construction has greatly increased the overall urbanisa-
tion rate, but it has generated a large number of industrial byprod-
ucts such as construction and demolition (C&D) waste.
Approximately 3 billion tons C&D waste is generated around the
world every year (Akhtar and Sarmah, 2018). The random disposal
of C&D waste encroaches land resources and causes problems, such
as soil, air, groundwater pollution (Marzouk and Azab, 2014), and
even landslide (Yang et al., 2017). But the recycle rate is 40% in
America (Guerra et al., 2020), <15% in Greece, Portugal and Spain
(Menegaki and Damigos, 2018), and 5% in China (NDRC, 2014).
The contradiction between the high output of C&D waste and the
inefficiency of disposal is becoming increasingly prominent world-
wide. However, C&D waste as a ‘misplaced resource’ has an extre-
mely high utilisation value, and its main utilisation methods are
shown in Table 1.
⇑ Corresponding author.
E-mail addresses: wanghz99@sdjzu.edu.cn (H. Wang), 838260696@qq.com
(X. Pan), zhangshibin18@sdjzu.edu.cn (S. Zhang).
economies, it is pretty significant for enterprises to understand
earnings management and strategically plan success and prof-
itability (Tomas et al., 2020), the C&D waste disposal industry is
no exception. As shown in Table 1, the economic analysis on the
C&D waste disposal industry is mostly theoretical, and current
research mainly focuses on management and application technol-
ogy; however empirical analysis is lacking. In addition, manage-
ment and economic studies have focused on a single city, but
they have not explained the mutual influence of the C&D waste
disposal industry amongst multiple cities in an area. Research gaps
on the spatial and temporal patterns of industrial development
have yet to be addressed, as such, providing substantial help for
the development of the C&D waste disposal industry is difficult.
A spatial econometric model can be applied to various fields,
such as spatio-temporal pattern and driving factors of municipal
solid waste generation (Wang et al., 2020), spatial agglomeration
of high-technology industry (Li et al., 2019), which can directly
reflect the development characteristics of this industry in different
cities and the mutual relationship. It has been demonstrated that
municipal solid waste disposal industry has spatial correlation

https://doi.org/10.1016/j.wasman.2021.04.025
0956-053X/Ó 2021 Elsevier Ltd. All rights reserved.
H. Wang, X. Pan and S. Zhang
Table 1
Literature Review.
Type Description
Resource Recycled aggregates for subgrade
utilisationanalysis
Landscape material
Recycled brick
Recycled concrete
Composite building materials
Economic analysis Recycling on-site costs only 63.8% of
a private recycling center.
The cost of C&D waste management
through prefabrication technique
reduces 79% compared to
conventional methods.
The net benefit of reusing and
recycling of waste materials is
estimated at 2.5% of the total
project budget.
When the illegal waste dumping
percentage is reduced by 50%, the
net income of waste management
increases by 127,000 yuan.
The C&D waste recycling program
must be continued until the end of
Year 17 with the minimum
acceptable IRR of 12% for most
government projects.
Recycled concrete is about 40%
cheaper than the raw material.
There is a high profit potential of a
C&D waste recycling plant on
around 2 years payback period, a
plant capacity of 350 tone/h, the
collection of 21.8 million
€/year in gate fees and around 11.9
million €/year in running costs.
An environmentally suitable
solution was 49.5% more cost-
effective than landfilling.
The production of recycled powder
can generate 57.35% of the revenue
from recycled aggregate to the
recycling plant.
(Wu et al., 2012). Does the C&D waste disposal industry also have
spatial and temporal distribution pattern? The disposal and utilisa-
tion of C&D waste require an integrated response from a working
body to create a disposal line covering transport, remanufacturing
and management (Barbudo et al., 2020). In Industry 4.0, the C&D
waste disposal industry is moving towards systematisation, regio-
nal linkages, and the clustering of logistics companies, technology
companies and remanufacturing companies in the field of C&D
waste disposal (Kliestik et al., 2020). Therefore, hypothesis is
developed: The C&D waste disposal industry has spatial autocorre-
lation and the spatio-temporal pattern is influence by economies of
scale factors.
In this study, economic analysis is innovatively conducted from
a spatiotemporal perspective to present the spatial distribution
regularity in multiple cities and temporal development laws.
Firstly, the Yangtze River Delta (YRD) is selected as the research
area. A spatial Durbin model (SDM) is used to describe the spatial
distribution characteristics of the development of the C&D waste
disposal industry and determine the influencing factors. Secondly,
a time–series analysis is performed to describe the time distribu-
tion characteristics of the C&D waste disposal industrial develop-
ment in the YRD between 2012 and 2019. Lastly, based on the
Waste Management 127 (2021) 158–167
analysis results, suggestions on promoting the development of
C&D waste disposal industry are provided. The study innovatively
Reference analyses the development pattern of the C&D waste disposal
(Sormunen industry. It may be very helpful for researchers from other coun-
and Karki, tries to explore the development of the local C&D waste disposal
2019) industry and make planning recommendations for the govern-
(Cui et al., ment, as well as for the enterprise-related investors worldwide
2012)
(Seco et al.,
design site selection and business development plans.
2018)
(Bravo et al.,
2017) 2. Materials and methods
(Cha et al.,
2020) This section describes the modelling process of this study,
(Jung et al., including 5 steps. (1) Determination of research area. (2) Selecting
2015)
the influencing factors. (3) Spatial autocorrelation analysis. (4)
(Maqsoom
et al., 2019)
Selecting the spatial econometric model. (5) Decomposition of spa-
tial effects.
(Begum
et al., 2006) 2.1. Determination of research area
The YRD is one of the most developed and active regions in
(Hao et al.,
2019) China. To rationally use resources, city governments in the YRD
are seeking a new C&D waste disposal model. The region leads
the industrial development and policy implementation associated
(Doan and with C&D waste disposal in China.
Chinda,
2016)
Related front-line companies, including C&D waste sorting,
transportation enterprises, C&D waste recycling companies and
C&D waste recycled materials research and development compa-
(Nußholz nies are surveyed to analyse the development conditions of the
et al., 2020)
C&D waste disposal industry. The scale of the local C&D waste dis-
(Coelho and
de Brito, posal industry is described in terms of the number of types of
2013) enterprises in a particular year. The speed of development of the
C&D waste disposal industry in different cities is slightly different.
The trends in the size of the C&D waste disposal industry in differ-
ent cities in the YRD region from 2012 to 2019 are shown in Fig. 1.
(Spišáková The C&D waste disposal industrial scales of Shanghai, Hangzhou,
et al., 2021) Ningbo, Suzhou and Hefei were higher than those of other cities
in 2012. Amongst these cities, Shanghai is the largest. The cities
(Liu et al.,
adjacent to the five cities have a faster development rate and show
2020a)
a trend of outward diffusion from the central cities. The scale of the
C&D waste disposal industry exhibits an obvious external effect.
Cities with a large scale and a well-developed industrial chain
can drive the industrial construction of the surrounding cities. This
phenomenon is in line with the hypothesis that the C&D waste dis-
posal industry has a spatial and temporal autocorrelation.
2.2. Socioeconomic factors selection
One of the important basic theories of modern business man-
agement, is the economy of scale, which states that expanding
the scale of operations within a certain period can reduce average
costs and increase profit levels (Linden, 2016). The C&D waste dis-
posal industry in the YRD is in its infancy, and research on the fac-
tors affecting industrial development based on the economies of
scale can help comprehensively analyse the development regular-
ity. Economies of scale are further divided into internal and exter-
nal. The internal economies of scale consider technical and
economic factors that affect industry scale as internal factors. The
external economies of scale state that enterprise aggregation affect
factors influence industry scale as external factors. Several studies
suggest that economies of scale factors are related to industrial
development. Based on previous studies, four internal factors and
three external factors are selected to examine the impact of the
economies of scale on the C&D waste disposal industry. The basic
status of influencing factors is shown in Table 2.
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H. Wang, X. Pan and S. Zhang Waste Management 127 (2021) 158–167

Fig. 1. Development of C&D waste disposal industry in the YRD.

Table 2
Influencing factors of Economies of scale.

Variable Reference Abbreviation Definition Unit Type Mean Std.dev.

GDPP The C&D waste management is influenced by GDP GDP/Permanent population Yuan/ EF 87606.86 35010.35
(Aslam et al., 2020).. person
CWAY The C&D waste disposal industrial development Construction waste (annual construction area
0.06/m2) + ton IF 2263.82 2338.95
hasn’t yet reached the ideal state because of Demolition waste (annual construction area
20%
1.3t/
unstable supply of raw materials (Chen and Chen, m2) + Decoration waste (annual housing completion area
2017).
0.1t/m2+Annual commercial completion area
0.15t/
m2)(Zheng and Hu, 2018)
RDL R&D promotes the recycling of C&D waste and R&D expenditure/GDP % EF 2.26 0.87
industrial development (Tan and Hou, 2010).
ML Market competition can influence industrial 1-the main business income of state-owned and state- % IF 80.24 14.47
sustainability (K. H. et al., 2015). holding comprehensive utilisation of waste resources
enterprises above the designated value/the main business
income of comprehensive utilisation of waste resources
enterprises above designated value
TDL Transportation infrastructure influences the city Mileage of a standard highway at the domestic level M IF 11293.89 4566.45
industrial development (X., 2017).
HC Human capital is a key factor in modern economic Average wage of employees in the manufacturing labour Yuan/ IF 59639.95 16090.83
development (Sun, L. L., 2016). force person
EL Higher education development has a positive Enrolment in tertiary college person EF 51567.5 70412.68
indirect effect on industrial structure upgrade
(N. and Z., 2021).

2.3. Spatial autocorrelation analysis tion can be defined as areas in similar locations with similar vari-
ables. Global Moran’s I is used to measure the overall spatial
Moran’s I is used to descript the spatial autocorrelation of C&D correlation, as shown in Eq. (1). Local Moran’s I is determine the
waste disposal industry between cities in YRD. Spatial autocorrela- local correlation and spatial aggregation around space i, as

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H. Wang, X. Pan and S. Zhang Waste Management 127 (2021) 158–167

expressed in Eq. (2) (Chen, 2014). Moran’s I is generally between Where a is a constant term; k is the influence of spatial lag Wy on y,
1 and 1. The larger the absolute value of Moran’s I, the stronger that is, the spatial correlation coefficient; bis the impact of regional
the spatial correlation. independent variables on y, that is, the spatial regression coeffi-
Pn Pn  
 
 cient; d is the influence of adjacent independent variables on y, that
i¼1 j¼1 wijxi  x xj  x is, the spilling effect; W is the spatial weight matrix; and e is the
I¼ P P ð1Þ
S2 ni¼1 nj¼1 wij error term.
The spatial econometric model was selected in two steps.
 Firstly, SAR, SEM and SDM are subjected to fitting analysis. The fit-
ðxi  xÞ Xn 
Ii ¼ wij ðxj  xÞ ð2Þ ting results of the SDM on independent variables and correlation
S2 j¼1
coefficients are ideal. Then, the maximum likelihood test is per-
In Eqs. (1) and (2),Iis the global Moran’s index;Ii is the local Moran’s formed to further select the model. The results show that the P-
index, nis the spatial sample size; xi andxj are the C&D waste dis- value of the two maximum likelihood tests are both 0.0000, so
 rejecting the assumption that SDM can be simplified into SAR
posal industry scales of regions i andj respectively; x is the average
of all regions; S is the standard deviation; and wij is theði; jÞvalue of and SEM.
Variables are normalised, and the logarithm is determined to
the spatial weight matrix. The adjacency matrix is chosen here.
obtain the following model:
I is used to indicate the significance level of Moran’s I, as shown
in Eq. (3). The results of I can be divided into four types of spatial lny ¼ a þ kWðlnyÞ þ b1 WX1 þ b2 WX2 þ b3 WX3 þ b4 WX4
correlation. A positive Moran’s I and I > 0, indicate a ‘high–high’
þ b5 WX5 þ b6 WX6 þ b7 WX7 þ d1 WX1 þ d2 WX2
aggregation type, and large-scale C&D waste disposal industry in
a given city and adjacent cities A negative Moran’s I and I < 0, þ d3 WX3 þ d4 WX4 þ d5 WX5 þ d6 WX6 þ d7 WX7 þ e ð5Þ
denote a ‘low–low’ aggregation type, and small-scale C&D waste
The development of the C&D waste disposal industry in the YRD fits
disposal industry in a given city and adjacent cities. A negative
the SDM.
Moran’s I and I > 0, correspond to a ‘high–low’ aggregation type,
a large industrial-scale city and small adjacent cities. A negative 2.5. Spatial effect analysis
Moran index and I < 0, refer to a ‘low–high’ aggregation type, a
small industrial-scale and large adjacent cities. Once the SDM has been selected for spatial econometric analy-
 I  EðIÞ sis, the effects of the influencing factors need to be selected and
I ¼ pffiffiffiffiffiffiffiffiffiffiffiffiffi ð3Þ decomposed.
VarðIÞ
The effects of the SDM can be divided into fixed and random
In Eq. (3),I is the significance level of Moran’s I, EðIÞ is the mathe- effects. The former means that the individual effect u i in area i is
matical expectation of global Moran’s I, and VarðIÞ is the variance related to the independent variable xi in the area; otherwise, it is
of global Moran’s I. a random effect. The Hausman test is generally used to select
A Moran scatterplot based on Moran’s I results can be used to fixed- or random-effect models. Its result shows that the develop-
analyse the spatial correlation between cities. The similarity to ment of the C&D waste disposal industry in the YRD conforms to
neighbouring cities can be examined on the location of the city the SDM with fixed effects.
observed in the scatter plot. The Moran scatterplot is also utilised The effects of SDM are decomposed into direct effect, indirect
to express the correlation between the observed value and its spa- effect and total effect to analyse the effector mechanism of inde-
tial lag, the correlation coefficient is global Moran’s I, which is the pendent variables on dependent variables (Lesage, 2008). Direct
slope of the regression line of the scatterplot. effect refers to influence of independent variables in area ion
dependent variables. Indirect effect corresponds to the spatial spil-
2.4. Spatial econometric model lover effect, that is, the effect of explanatory variables on the
explained variables in the adjacent area. Total effect denotes to
In econometrical analysis, the influence of geographic factors on the influence of independent variables in all regions on the depen-
data should be considered. Therefore, a spatial weight matrix is dent variables in region i. The decomposition effect is shown in
introduced to represent spatial effects in spatial measurement. A Equations (6)-(8), and the total effect is shown in Equation (9).
general nesting spatial model can be simplified into three main
models based on three different interaction effects: endogenous y ¼ ðI  kWÞ1 ða þ kWy þ Xb þ WXd þ eÞ ð6Þ
interaction effect, exogenous interaction effect and interaction
effect between error terms. In the endogenous interaction effect, EðyjxÞ ¼ ðI  kWÞ1 ða þ kWy þ Xb þ WXdÞ ð7Þ
a spatial autoregressive model (SLM or SAR) considers that the
0 1 2 3
explained variable of a specific unit A depends on the explained @Eðy1 Þ @Eðy1 Þ bk w12 hk    w1n hk

variable of another unit B; In the exogenous interaction effect, B @x1 @xn
C 6 w21 h bk    w2n hk 7
B .. .. .. C 6 k 7
C ¼ ðI  kWÞ 6 7
1
the SDM shows that the explained variable of a particular unit B . . . 6 .. .. .. . 7
@ A 4 . . . .. 5
depends on the independent explanatory variable of other units. @Eðy1n Þ @Eðyn Þ

In the interaction effect between error terms, a spatial error model @x1 @xn wn1 hk wn2 hk    bk
(SEM) illustrates that the error term of unit A depends on the error ð8Þ
term of unit B (Elhorst, 2014).
n
In comparison with SAR and SEM, SDM can comprehensively
Totaleffect ¼ ðI  kWÞ1
ðbk I þ hk WÞg ð9Þ
reflect the influence of variables in their own area and in adjacent
areas, the interpretation force of SDM is also stronger than that of The direct effect is the average of the main diagonal elements of
SAR and SEM, so SDM is more widely used in spatial econometric 

research (Elhorst, 2010). The SDM formula is as Eq. (4). the matrix. If Ad is used to represent the average of the main
diagonal elements of the matrix, the average direct effect can
y ¼ a þ kWy þ Xb þ WXd þ e ð4Þ be expressed as

161
H. Wang, X. Pan and S. Zhang
n 

Directeffect ¼ ðI  kWÞ1
ðbk I þ hk WÞd
The indirect effect is the row average of the off-diagonal element of
 ment of the C&D waste disposal industry in the YRD are shown
the matrix. If Arsum is used to represent the row average of the off-
diagonal element of the matrix, the average indirect effect can be
expressed as
n  o
Indirecteffect ¼ ðI  kWÞ1
ðbk I þ hk WÞrsum
3. Results and discussion
The major results of this study are explicitly examined and dis-
cussed in this section. Firstly, the spatial analysis results followed
by the reasons and explanation are analyzed. Then, temporal anal-
ysis with special policies is shown. Lastly, suggestions regarding
the development of the C&D waste disposal industry are made
on the basis of the results of the empirical analysis, and research
gaps and future research directions are discussed.
3.1. Spatial analysis results
Global Moran’s I (Table 3) demonstrates the hypothesis of spa-
tial autocorrelation in the C&D waste disposal industry. Moran’s I is
is significantly greater than 0. Therefore, the YRD has a positive
spatial correlation during the development of the C&D waste dis-
posal industry. The significant level of spatial correlation increases
yearly. Moran’s I is significantly lower than that of other related
spatial econometric analysis, because of two main possible rea-
sons. Firstly, the C&D waste disposal industry in the YRD is in its
infancy, and a large gap exists between different cities in the pro-
cess of industrial development of C&D waste disposal process. Sec-
ondly, the volume of C&D waste and recycled building materials is
high but they have a low value. The transportation cost is relatively
high, resulting in the low turnover rate between different cities.
The novel finding of the spatial autocorrelation of the C&D waste
disposal industry can help countries around the world plan the lay-
out of C&D waste disposal industry.
The Moran scatterplot (Fig. 2) shows the type of the spatial
autocorrelation of the C&D waste disposal industry in different
cities. Most of the scatter points can be considered to be located
in the first and third quadrants. Chizhou, Shaoxing, Jinhua, Shang-
hai, Taizhou, Jiaxing, Hangzhou, Suzhou and Ningbo are ‘high–high’
cluster types. Chuzhou, Tongling, Yangzhou, Taizhou, Xuancheng,
Zhenjiang, Anqing, Changzhou, Nanjing and Yancheng are the
‘low–low’ cluster type. Zhoushan, Huzhou Municipality, Ma’an-
shan, Nantong, Wuxi, Wuhu and Hefei are the ‘high–low’ cluster
type. The results reveal that the development of the C&D waste dis-
posal industry tends to be ‘‘high-high” and ‘‘low-low” aggregation
types. It is in accordance with the setting that the development of
the C&D waste disposal industry in the YRD has a positive spatial
correlation.
A spatial autocorrelation is observed in the distribution of
municipal solid waste. Urban planners require an understanding
of the spatial patterns of municipal solid waste generation to
design policies for various locales within a city (Zhang et al.,
2015). Similarly, the concentration of the C&D waste disposal
industry in different cities can help managers plan the distribution
Table 3
Global Moran’s I of the C&D waste disposal industry in the YRD.
Year 2012 2013 2014
Global Moran’s I 0.259** 0.263** 0.256**
p-value 0.015 0.015 0.017
Standard errors in parentheses= ‘* p < 0.1 ** p < 0.05 *** p < 0.01’.
Waste Management 127 (2021) 158–167
of the disposal industry and help investors choose the right cities
ð10Þ
and plants to invest in.
The analysis results of the influencing factors of the develop-
in Table 4. The results support the hypothesis that the C&D waste
disposal industry is influenced by the factors of economies of scale.
Amongst all significant factors, per capita GDP, annual yield of C&D
waste, research and development level, transportation develop-
ð11Þ
ment level, human capital and education level have a positive
effect. Conversely, marketisation level elicits a negative effect.
Tan et al. also explored the factors affecting C&D waste recycling
in terms of policy, management, economics, technology and psy-
chology (Tan and Hou, 2010). At early development stages of the
C&D waste disposal industry, continually improving policies and
technical specifications, rationally planning industrial layouts,
enhancing the degree of specialisation and strengthening research
and development likely promote C&D waste recycling and indus-
trial development (Tan and Hou, 2010). The novel findings of influ-
encing factors can provide reference for governments and investors
in various countries formulate the development plan of C&D waste
disposal industry according to the characteristics of the city and
avoid the interference of negative factors.
1) Per capita GDP represents the local economic development
level. And it has been demonstrated that lower economic
performance influences increasing number of personal
bankruptcies (KubÁLek et al., 2017). Areas with high eco-
nomic development levels have a comparative advantage
in financial support and industrial chain construction. Urg-
ing C&D waste disposal from the perspective of a rational
person and emphasising the importance of bottom-up from
self-interest can help improve the operating environment.
Therefor the Per capita GDP plays a significant role in pro-
moting the industry scale of C&D waste disposal. And it also
has been noted that GDP significantly influences C&D waste
generation and management (Aslam et al., 2020).
2) The annual yield of C&D waste in a region can reflect the
external pressure and the supply of recycled materials. On
the one hand, the annual yield of C&D waste has increased,
and environmental pressure has forced the region to seek
solutions to the dilemma of ‘garbage siege’. On the other
hand, C&D waste is used as material for recycled building
materials, and the sufficient supply of materials provides
convenience for manufacturers of recycled building
materials.
3) Research and development level positively affects the scale
of the C&D waste disposal industry, that is, areas with higher
technical research levels have faster industrial development
rates. Sorting and remanufacturing technologies derived
from technological developments can improve the theoreti-
cal possibility of the resource utilisation of C&D waste and
provide technical support for related enterprises. The devel-
opment of biochar technology (Marouek et al., 2019),
biotechnologically (Marouek et al., 2020) and ultrafine-
grained interstitial free steel (Hadzima et al., 2007) may help
enhance the energy consumption reform of the building
material industry. Vandecasteele also emphasised that the
development of R&D has led to technological advances that
2015 2016 2017 2018 2019
0.286*** 0.286*** 0.348*** 0.369*** 0.376***
0.010 0.010 0.003 0.002 0.001
162
H. Wang, X. Pan and S. Zhang Waste Management 127 (2021) 158–167

Fig. 2. Local Moran’s I of the YRD.

Table 4 4) Human capital represents the local labour market situation.

Results of influencing factors analysis. In the manufacturing industry, high wages can often attract
SDM Time fixed SDM spatial SDM Time and spatial more workers to enter the C&D waste disposal industry.
effect fixed effect fixed effect Therefore, an increase in human capital drives the influx of
Main
labour, thereby promoting the expansion of the industrial
lnGDPP 0.95677*** 0.37677*** 0.35240***(0.125) scale of C&D waste disposal.
(0.184) (0.134) 5) Transportation development level represents the carrying
lnCWAY 0.24178*** 0.10229(0.107) 0.09038(0.103) capacity of C&D waste and recycled building materials in a
(0.043)
region. The domestic requirements for the driving of muck
lnRDL 0.22384*** 0.08805*(0.049) 0.05994(0.048)
(0.062) trucks are strict, and clear regulations on the operating time
lnML 1.40936*** 1.82611*** 1.77408***(0.445) and transportation routes are implemented. Therefore, in
(0.184) (0.475) areas with higher transportation levels, the transportation
lnTDL 1.08399*** 0.09269(0.129) 0.11458(0.122) of C&D waste and recycled building materials is more conve-
(0.083)
lnHC 1.10351*** 0.02275(0.214) 0.03940(0.208)
nient, and disposal planning can be carried out efficiently. In
(0.325) terms of transporting C&D waste, the planning of transport
lnEL 0.25134*** 0.10120**(0.041) 0.12938***(0.040) fleets and routes can have a direct effect on the efficiency
(0.069) and economic cost of C&D waste resource disposal
Wx
(Elshaboury and Marzouk, 2020).
lnGDPP 1.29809*** 0.35384*(0.207) 0.08447(0.217)
(0.265) 6) Education level can measure the quality of citizens in a
lnCWAY 0.48228*** 0.40793*(0.210) 0.48983**(0.231) region. Considering that the main investment of C&D waste
(0.107) disposal industry is from the current government subsidy
lnRDL 0.24960(0.164) 0.23930**(0.111) 0.15725(0.111) and that the profit rate is low, the quality level of citizen
lnML 1.09566*** 2.69905*** 0.96139(0.906)
(0.370) (0.851)
directly affects the efficiency of C&D waste disposal and
lnTDL 0.74974*** 0.62749*** 0.50758**(0.235) the market acceptance rate of recycled building materials,
(0.180) (0.221) consequently the expansion of scale of the C&D waste dis-
lnHC 2.15101*** 0.52989**(0.260) 0.48463(0.358) posal industry is promoted.
(0.607)
7) Marketisation level negatively affects the C&D waste dis-
lnEL 0.31213** 0.30840*** 0.15410(0.100)
(0.146) (0.095) posal industry. The development rate of the C&D disposal
Spatial industry in cities with a high marketisation level is slow.
rho 0.25731*** 0.36914*** 0.09389(0.110) Amongst the factors influencing C&D waste recycling deci-
(0.084) (0.070) sions, market competition is considered the most signifi-
Variance
sigma2_e 0.16243*** 0.02015*** 0.01728***(0.002)
cant(Chinda, 2016). Regions with high marketisation levels
(0.016) (0.002) are more inclined to develop their technology and
knowledge-accumulating industries. A city’s resources tend
Standard errors in parentheses= ‘* p < 0.1 ** p < 0.05 *** p < 0.01’.
to flow to high-tech and financial industries. The C&D waste
disposal industry is essentially not technically demanding,
have contributed to the expansion of the C&D waste disposal However, as a labour-intensive industry, it requires consid-
industry in studies on C&D waste recycling (Vandecasteele erable labour and material resources. Furthermore, the
et al., 2013). C&D waste disposal industry often covers a large footprint,
163
H. Wang, X. Pan and S. Zhang Waste Management 127 (2021) 158–167

and its profitability and attractiveness of professionals can- Table A1

not compete with those of high-tech enterprises. Therefore, Abbreviation list.

entrepreneurs are often reluctant to invest in C&D waste dis- Abbreviation Explanation
posal plants. C&D waste Construction and Demolition Waste
YRD the Yangtze River Delta
The analysis results of the decomposition effect of influencing SDM Spatial Durbin Model
factors on the development of the C&D waste disposal industry GDPP Per capita GDP
CWAY C&D Waste Annual Yield
in the YRD are shown in Table 5. The results of the decomposition RDL Research and Development Level
effect show how the factors of the economies of scale influence the ML Marketisation Level
development of the C&D waste disposal industry from direct effect, TDL Transportation Development Level
indirect effect and total effect. The influencing factors of industrial HC Human Capital
EL Education Level
development of C&D waste disposal have a spatial spillover effect,
SLM Spatial lag model
and the direction of the factors is slightly different. SAR Spatial Autoregression
Per capita GDP, transportation development level and education SEM Spatial Error model
level positively affect the C&D waste disposal industry in cities.
However, they have a significant negative spillover effect on adja-
cent cities. Cities with developed economies, convenient trans- Table A2
portation, and better education have a higher ‘siphon effect’ than Results of the robustness test.
those with less values. As such, the former attract an influx of Default distance Double distance Inverse
funds, enterprises, and talents from surrounding cities. Therefor thresholds thresholds distance
industrial development in cities is promoted, and the rate of indus-
lnGDPP 1.03662***(0.167) 1.14618***(0.154) 0.57440***
trial development in adjacent cities slows down. (0.169)
The annual yield of C&D waste, research and development level, lnCWAY 0.17952***(0.032) 0.14845***(0.031) 0.22127***
human capital positively affect the regions and adjacent cities. The (0.037)
lnRDL 0.38474***(0.064) 0.32870***(0.052) 0.29192***
increased production of C&D waste consequently increases the
(0.060)
pressure on the environment. Nevertheless, it can be used as a lnML 1.07065***(0.154) 1.15203***(0.160) 0.97625***
raw material and product for industrial flow. Thus, this phe- (0.173)
nomenon promotes the development of the C&D waste disposal lnTDL 1.11356***(0.080) 0.91020***(0.086) 0.81979***
industry for local and adjacent businesses through internal recy- (0.086)
lnHC 2.90569***(0.518) 0.22968(0.267) 1.09304**
cling. The improvement of the research and development level
(0.539)
can provide the technology suitable for this industry. As the tech- lnEL 0.11618***(0.040) 0.13477***(0.038) 0.10987***
nology spreads, the scale of the disposal industry in adjacent cities (0.039)
expands. As the level of human capital in the C&D waste disposal
industry increases, more labour likely flows in, hence, the expan-
sion of scale is promoted.
Marketisation level negatively affect regions and adjacent cities. sistent with the empirical results. Therefor the spatial autocorrela-
The C&D waste disposal industry covers a large footprint and has a tion and the influencing factors of C&D waste disposal industry are
long investment return period. Market competition in cities with a robust.
high marketisation level is more intense. The C&D waste disposal
industry is obviously less attractive to investors than other finan-
cial industries or Internet industries. Therefore, marketisation level 3.3. Temporal analysis results
negatively affect the development of the C&D waste disposal
industry in this region and adjacent regions. The development of the C&D waste disposal industry in the YRD
from 2012 to 2019 is shown in Fig. 3. Before 2016, the industrial
scale of C&D waste disposal in the YRD steadily increased. In
3.2. Robustness check 2016, the growth rate of the scale accelerated. The scale of C&D
waste disposal enterprises grew by 35.79% in 2016 compared with
Other weight matrices selected, such as distance and inverse the same period and increased by 49.10% and 51.15% in 2017 and
distance weight matrices, are selected to test the robustness of 2018, respectively.
the empirical results. The results of the robustness test are shown The government’s policy directly promotes the rapid expansion
in Table A2.. Column 1 is the default distance thresholds matrix, of the C&D waste disposal industry. In 2016, the General Office of
column 2 is the double default distance thresholds matrix, and col- the State Council issued a policy on the use of C&D waste for
umn 3 is the inverse distance matrix. In the robustness test results, replacing natural resources, developing recycled building materials
the direction and significance of the independent variables are con- (GOSC, 2016). Furthermore, the policy proposes financial subsidies
for C&D waste recycling companies, and directly stimulates the
Table 5 C&D waste disposal industry to invest in C&D waste disposal and
Decomposition effect of influencing factors. utilisation. Thus, the importance of C&D waste disposal is empha-
sised from the national level.
Direct Indirect Total
Industrial specifications and industrial construction require-
lnGDPP 0.87662***(0.181) 1.37285***(0.302) 0.49623(0.327)
ments for the sorting and processing of C&D waste have also been
lnCWAY 0.27825***(0.040) 0.69299***(0.122) 0.97124***(0.152)
lnRDL 0.25376***(0.072) 0.40454*(0.210) 0.65830***(0.255)
introduced. In 2016, the state promulgated the policy, which pro-
lnML 1.49934***(0.193) 1.81563***(0.406) 3.31497***(0.451) moted the harmless disposal of C&D waste (NDRC, 2016). In
lnTDL 1.03098***(0.093) 0.63245**(0.260) 0.39852(0.309) 2018, the Ministry of Housing and Urban–Rural Development
lnHC 1.26081***(0.304) 3.06761***(0.852) 4.32842***(1.034) issued the pilot policy, which initially promoted the construction
lnEL 0.07163*(0.044) 0.37832***(0.138) 0.30669*(0.163)
of an industrial chain of C&D waste recycling in all 35 pilot cities
Standard errors in parentheses= ‘* p < 0.1 ** p < 0.05 *** p < 0.01’. (MOHURD, 2018).
164
H. Wang, X. Pan and S. Zhang
Fig. 3. Scale of C&D waste disposal industry in the YRD.
Different cities have various political sensitivity, and the C&D
waste policies and disposal modes of central cities affect adjacent
cities. For example, the People’s Government of Shanghai promul-
gated management regulations to develop the resource disposal of
C&D waste, and set up a C&D waste comprehensive service super-
vision platform; this platform integrates construction site informa-
tion, C&D waste supply and demand, transportation and disposal
company management, disclosure of government affairs, penalties
for violations and real-time monitoring of urban C&D waste in
‘‘Shanghai Model” (Shanghai, 2010). Afterwards, Suzhou promul-
gated similar policies and established the Suzhou City C&D Waste
Intelligent Supervision Platform (Suzhou, 2018). The surrounding
cities gradually promoted and used ‘Shanghai model’.
The role of external policies in promoting the development of
the C&D waste disposal industry is unquestionable. C&D waste
management policies at all government levels have been gradually
implemented. The simulation results of C&D waste disposal poli-
cies show that source management policies can reduce C&D waste
by more than 50%. Furthermore, governments can drive purchasing
power in the market of building materials and change the rigid
perception of recycled building materials amongst contractors
and owners; thus, the development of manufacturing recycled
building materials is promoted (Liu et al., 2020b). The novel finding
of policies’ stimulation to C&D waste disposal industry demon-
strates the importance of management policy to governments,
investors and researchers worldwide. However, the C&D waste dis-
posal industry gradually entered a stage of rapid development
around 2016. Sporadic policies or programs cannot fundamentally
solve the problem of improper disposal of C&D waste disposal. The
development of the C&D waste disposal industry requires the guid-
ance of unified national compulsory policies, and the bottom-up
participation of citizens and enterprises. The development of the
C&D waste disposal industry should be an interactive and timely
feedback process.
3.4. Suggestions and discussion
Based on our results, the following suggestions on C&D waste
disposal and utilisation policies are proposed. The suggestions
165
Waste Management 127 (2021) 158–167
may contribute to the development of C&D waste disposal industry
in various countries.
1) A C&D waste industry development circle should be
planned, and a selection plan for disposal plants should be
developed.
When formulating policies or promoting work, the government
should consider regional interaction because of the spatial autocor-
relation and significant spatial spillover effects of the C&D waste
disposal industry. Establish development circles centred on cities
with large C&D waste disposal industries. For example, in Shanghai
development circle, the C&D waste comprehensive service supervi-
sion platform and disposal methods should be promoted in the
surrounding cities of Nantong, Suzhou and Jiaxing; the planning
of the C&D waste disposal points should be equipped in the devel-
opment circle; and C&D waste disposal factories should be estab-
lished at the junctions of Suzhou, Nantong, Shanghai and Jiaxing
to realise a unified intercity management. In the development cir-
cle, state-owned holding enterprises lead the establishment of
research and development demonstration factories by applying
university research to production lines as reference cases for the
surrounding cities and private enterprises. The establishment of
development circles to manage C&D waste in multiple cities is
simultaneously applicable to various countries with different util-
isation rates of C&D waste recycling.
2) A special management policy should be formulated for cities
with high marketisation levels.
Special management policies are formulated for cities with high
levels of marketisation but slow development of the C&D waste
disposal industry, such as Zhenjiang and Nantong. In view of the
characteristics of market competition in such cities, compulsory
regulations should be formulated for relevant enterprises on the
disposal of C&D waste. For instance, construction and manufactur-
ing companies above the designated size are required to partici-
pate in C&D waste disposal and give corresponding subsidies.
Targeted and mandatory regulatory systems are more effective in
H. Wang, X. Pan and S. Zhang
cities with competitive markets, especially in countries with better
economies.
3) Demonstration and guidance policies should be developed,
and the promotion of environmental protection knowledge
should be strengthened.
Demonstration and guidance policies play an important role in
the popularisation of knowledge and technology in C&D waste dis-
posal. Therefore, in cities where the C&D waste disposal industry
has just started, policy makers should start with demonstration
policies. On the one hand, the harmful effects of arbitrary C&D
waste disposal and the benefits of the rational use of C&D waste
should be described and disseminated to reduce the proportion
of unreasonable disposal of C&D waste fundamentally. On the
other hand, regulations should be made on the use of recycled con-
struction materials, such as the utilisation rate of recycled con-
struction materials in a new project. The market demand for
recycled construction materials should be expanded. Pilot projects
should be set up in central cities, such as Shanghai and Suzhou.
Such projects can take advantage of a city’s geographic superiority
to expand the scope of the demonstration policy. The demonstra-
tion policies can help industry stakeholders around the world to
understand the basics and facilitate the rapid expansion of the
industry.
The results of the case study can provide support for the formu-
lation of C&D waste disposal industrial policies in various coun-
tries. The methodical approach used can help researchers in
various countries to collect basic data on the development of the
local C&D waste disposal industry, analyse local industrial devel-
opment patterns and provide references for policy formulation
and regional industrial planning. It can help investors in various
countries for investment in the C&D waste disposal industry, using
spatial and temporal analysis to select the scale and location of
C&D waste disposal plants. Bankruptcy is in strong correlations
with financial indicators and statements (Maria et al., 2019). It is
vitally important for inventors to understand the basic develop-
ment pattern of the C&D waste disposal industry and predict
potential financial risks (Kliestik et al., 2018). Lack of understand-
ing about the industry can increase entrepreneurs’ fear of failure,
even if the fear of failure does not increase the risk of starting a
business (Nabiha, 2018). This study can also help entrepreneurs
in various countries to understand the direction of the C&D waste
disposal industry and increase their motivation to start their own
business. Although our results can support the development of
C&D waste disposal industry and propose some suggestions, insuf-
ficiencies remain. Firstly, given the years of initial industrial devel-
opment, the selected research period is short, and the basic data of
the C&D waste disposal industry are insufficient. Secondly, in the
selection of factors affecting the scale of the C&D waste disposal
industry, this study focuses on economic factors, so the data anal-
ysis on policy factors are insufficient. Therefore, our follow-up
work will explore the effect of policies on the C&D waste disposal
industry. Thirdly, spatiotemporal measurement is based on regio-
nal data, and the results of the study only show the development
of the C&D waste disposal industry in the YRD region of China.
Local data will be needed for measurement and analysis to exam-
ine the development of this industry in other regions.
Solid waste disposal, as represented by C&D waste, is a common
problem worldwide. The clustering of the building material indus-
try is an inevitable trend to improve production efficiency. Indus-
trial agglomeration can bring together the capital, technology
and labour required for the resourceful disposal of C&D waste. Its
generated scale effect can also promote the listing and use of
C&D waste resourceful disposal products. Therefore, from the per-
spective of industrial economy, studying the rules and problems in
166
Waste Management 127 (2021) 158–167
the agglomeration of the C&D waste disposal industry is another
way to solve the problem of C&D waste resource disposal.
4. Conclusion
Through spatial measurement and time–series analysis, this
study finds that the C&D waste disposal industry has spatial and
temporal autocorrelation and is influenced by the economies of
scale. This study also proposes suggestions on promoting industrial
development based on the empirical results. It provides new ideas
and perspectives for investigating the C&D waste disposal industry.
Spatiotemporal autocorrelation can help the government under-
stand the development of the C&D waste disposal industry in this
region to formulate regional management plans and targeted poli-
cies for special cities. It exhibits the momentum of the develop-
ment of the C&D waste disposal industry for investors and
entrepreneurs from an economic perspective; consequently, they
may choose the scale of investment, timing and plant site selection
and other planning. The Industrial agglomeration of C&D waste
would be a vital area needed further work. Therefore, it would be
interesting to assess the interaction effects of internal and external
factors during the agglomeration of the C&D waste disposal indus-
try in further research.
Funding
This work was supported by the National Social Science Fund of
China [Grant number No. 15ZDC030]
Declaration of Competing Interest
The authors declare that they have no known competing finan-
cial interests or personal relationships that could have appeared
to influence the work reported in this paper.
Acknowledgments
We thank Pengfei Zhang for helping us improve the structure of
the manuscript.
Appendix A. Supplementary material
Supplementary data to this article can be found online at
https://doi.org/10.1016/j.wasman.2021.04.025.
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