In an era where sustainability is becoming a cornerstone of industry practices, a groundbreaking study led by Wen Yi from the Department of Building and Real Estate at The Hong Kong Polytechnic University is shining a light on the potential for battery-powered construction machinery (BPCMs) to revolutionize the construction sector. Published in the journal Cleaner Logistics and Supply Chain, this research tackles a critical barrier to the adoption of green technology: the high purchase prices of BPCMs.
Diesel-powered construction machinery has long been a significant contributor to air pollution and carbon emissions. The transition to BPCMs could drastically reduce these harmful outputs, yet the financial challenges have left many contractors hesitant. Yi’s research proposes a Stackelberg game framework that could change the game entirely by optimizing government subsidy allocations to encourage the switch to cleaner machinery.
“The government plays a pivotal role in shaping the market for sustainable construction practices,” Yi explains. “By effectively determining the subsidy amounts for different types of BPCMs, we can not only minimize emissions but also influence contractors’ purchasing decisions in a way that aligns with environmental goals.”
In this model, the government first decides on the subsidy levels, which then informs contractors’ strategies regarding the purchase and operation of machinery. This interactive approach allows for a dynamic response to market conditions, where contractors’ choices subsequently affect future government subsidy decisions. The implications are profound: a well-structured subsidy policy could catalyze a significant shift toward greener construction practices.
To enhance the effectiveness of these subsidy policies, Yi and his team developed a random forest machine learning model to predict contractors’ demand for construction machinery accurately. This predictive capability is crucial, as it enables the government to tailor subsidies that will maximize both economic and environmental benefits. “Our statistical results indicate a high level of accuracy in demand predictions, which is essential for designing effective policies,” Yi notes.
The commercial impact of this research could be substantial. By lowering the barriers to entry for BPCMs, contractors may find themselves in a position to not only comply with increasingly stringent environmental regulations but also to enhance their market competitiveness. As the construction industry grapples with the dual pressures of sustainability and profitability, Yi’s work offers a pathway that aligns economic interests with ecological responsibility.
As the construction sector continues to evolve, the insights from this research could serve as a blueprint for other industries facing similar challenges in transitioning to sustainable technologies. By integrating economic models with environmental strategies, stakeholders can forge a future where construction is not just about building structures, but also about building a sustainable world.
For more information about Wen Yi’s work and ongoing research initiatives, visit The Hong Kong Polytechnic University.
