Research on Stochastic Evolutionary Game and Simulation of Carbon Emission Reduction Among Participants in Prefabricated Building Supply Chains
Abstract
:1. Introduction
2. Literature Review
2.1. PBSC
2.2. Carbon Reduction in PBSC
2.3. Evolutionary Game Theory
2.4. Research Gap
- Current research demonstrates that participants in each link of the PBSC, from design to dismantling, can reduce carbon emissions. Still, there is less research on how the emission reduction strategies of these participants interact with each other. Compared with studies on secondary and tertiary supply chains, the model constructed in this paper covers the entire PBSC, rather than only partial links or conceptualized upstream and downstream enterprises. This paper’s four-way evolutionary game model reflects participants’ emission reduction strategy choices in the whole PBSC, which is more comprehensive.
- Besides the impact of PBSC participants and external institutions on carbon emission reduction, emission reduction information and PBSC synergy also have a significant effect. Most current studies consider the impact of policy and social factors, such as subsidies, taxes, carbon trading, etc., on carbon emission reduction in PBSC, ignoring the effect of emission reduction information. In addition, current research exists on how synergies and free-rider effects in the supply chain play a role in carbon emission reduction, but there are fewer studies for PBSCs.
- Most studies recognize the impact of stochastic disturbances on carbon emission reduction in PBSCs. Still, few scholars have included them in a systematic analysis to explore the interaction of players’ emission reduction strategies. Most of the existing studies construct evolutionary game models in an ideal state, which lacks authenticity. In addition, there are still fewer methods to study PBSC carbon emission reduction using stochastic evolutionary game models.
3. Model and Analysis
3.1. Problem Raising and Basic Assumptions
3.2. Construction of a Four-Way Evolutionary Game Model
3.2.1. Construction of the Payoff Matrix
3.2.2. Replicator Dynamics Equation
3.3. Construction and Analysis of Stochastic Evolutionary Game Model
3.3.1. Game Model Establishment
3.3.2. Game Model Analysis
3.4. Stochastic Taylor Expansion
4. Results
4.1. Parameter Description
- For PBs, a higher prefabrication ratio significantly reduces carbon emissions [52,72]. Based on the indicators for estimating investment in assembly building projects [73], which provide cost indicators for various types of assembly buildings (PBs), and considering that the cost increase for constructing buildings with a high assembly rate compared to those with a low assembly rate ranges from approximately 12% to 30%, it is abstractly assumed that this incremental cost represents the additional cost incurred by participants in implementing the abatement strategy.
- The regulation on energy conservation in civil buildings stipulates that the government imposes fines of 2–4% of the contract price on companies that exceed emissions [74].
- The Civil Code states that the penalty for breach of contract may not be higher than 30% of the cost of damages [75].
- The Annual Report on China’s carbon market indicates that the carbon trading market offers about a 50% reduction or exemption on carbon trading fees for emission-reducing entities [76]. Several places have also innovated the forms of carbon trading and carbon financial mechanisms, aiming to reduce the cost of emission reduction by lowering the transaction costs of emission-control enterprises [76].
- China grades PBs according to the Evaluation Standard for Assembled Buildings [77], with the higher the grade, the better the environmental benefits [72]. In Beijing, Shanghai, Guangdong, and Shenzhen, financial subsidy policies for assembled buildings with a grade of AA or above provide bonuses of RMB 30–120 per square meter, or approximately 5–10% of the unit cost.
- Referring to the research results related to collaborative emission reduction [41,58,78,79], , set . Based on the research findings on the impact of information on decision-making [56,80], and considering the specific circumstances and expert opinions regarding PBSC emission reduction information, we set .
4.2. Validation of Model Credibility and Robustness
4.3. Effects of Stochastic Perturbations
4.4. Effects of Strategy Probability
4.5. Sensitivity Analysis
4.5.1. Effects of Abatement Benefits
4.5.2. Effects of Abatement Costs
4.5.3. Effects of Information Absorption and Transformation Efficiency
4.5.4. Effects of Joint Abatement Benefit Coefficients and Free-Riding Benefit Coefficients
4.5.5. Effects of Penalties for Non-Compliance
4.5.6. Effects of External Losses
4.5.7. Effects of External Incentives and Aids
4.5.8. Effects of External Information Content
5. Discussion
5.1. Summary of Findings
- Stochastic perturbation factors and initial strategy probability play a significant role in the gaming system’s evolutionary situation. When the environment in which the PBSC operates is unstable, it lengthens the fluctuation interval and significantly reduces the speed of strategy evolution. Increasing the proportion of the initial carbon emission reduction group is more conducive to accelerating the system’s evolution.
- The agents’ abatement benefits and costs significantly affect the choice of strategy. It is most favorable to promote the abatement strategy when the party’s abatement benefit and cost are at and , respectively. Among them, the Production and Construction Party (Y) is the most sensitive to the benefits and costs of abatement. Consequently, these factors influence Y’s decision to implement abatement strategies.
- The operational status of the PBSC is a key factor in determining participants’ strategies. X at the top and Y at the bottom of the PBSC are most affected by its synergistic capabilities. Establishing an appropriate monitoring mechanism within the PBSC is conducive to increasing the parties’ willingness to reduce emissions and keeping the penalty for non-compliance to less than twice the amount of the base case is conducive to improving the overall effectiveness of PBSC in reducing emissions.
- The external environment’s effect on the agents’ strategies is mainly in terms of the losses caused and the help provided. Continued external pressure on Z to reduce emissions can be an effective driver for continued abatement by Z. For other agents, the external loss is within to push them to implement abatement strategies. External incentives and aids impact the speed of evolution, most prominently on Y, followed by X. Section 4.5.2, Section 4.5.6, and Section 4.5.7 show that, with other factors constant, equal changes in negative and positive incentives lead to different results: Negative incentives may cause subjects to abandon emission reduction, while positive incentives only affect the system’s convergence speed. External losses are more effective than incentives and aid in promoting emission reduction by agents.
- The abatement information content is an essential factor affecting decision-making. The information content positively correlates with the agent’s willingness to reduce emissions. It is optimal to keep the information content to ensure that each agent implements an abatement strategy and avoids wasting resources. The agent’s ability to process information is positively related to the evolutionary speed. It has the most significant effect on X. When , X rejects abatement.
5.2. Recommendation
- Maintaining a stable market, increasing the resilience of the PBSC, and increasing the proportion of emission reduction groups. Section 4.3 and Section 4.4 demonstrate that maintaining system stability and enhancing initial emission reduction intentions can facilitate PBSC emission reduction. The consumer market drives, while the supply market supports. To promote the implementation of emission reduction strategies by participants in the PBSC, the following measures should be taken: (1) Enhance public environmental awareness and acceptance of PB to boost consumers’ willingness to pay [29]. (2) As the general organizer, the government should introduce policies to stabilize the market and prices, alleviating construction companies’ concerns over carbon emission reduction [50]. (3) The PBSC should enhance risk resistance through stronger cooperation among participants to better adapt to market changes.
- Participants in PBSC should reduce costs, increase efficiency, and improve capacity in production, promotion, and co-operation. Section 4.5.1 and Section 4.5.2 indicate that the direct costs and benefits significantly influence enterprises and those engaged in construction should actively participate. The first is to reduce costs via technological innovation and upgrading, corporate R&D cooperation, and construction collaboration [38]. Secondly, use advertising and packaging design to promote emission reduction concepts, expand the market, publicize high-quality projects, and set industry benchmarks to guide more projects to reduce emissions [56]. Thirdly, actively seek opportunities for cooperation [16,37]. For example, reduce employment and training costs via school–enterprise cooperation; lower procurement costs through long-term supplier relationships; decrease R&D costs by collaborating with research institutions; and share resources and complement strengths with peer enterprises via strategic alliances to undertake large-scale projects and achieve standard emission reductions.
- Enhance the internal communication and information-sharing mechanisms within the PBSC, focusing on participants at both ends of the PBSC, with appropriate external intervention for optimization. Section 4.5.4 highlights that focusing on the beginning and end of PBSC agent, enhancing coordination, and avoiding the “free-rider” effect can promote emission reduction. Enhancing information flow within PBSC promotes collaborative emission reduction, while ensuring information security prevents free riding [83]. PBSC participants should form alliances, enhance communication, and optimize the PBSC operation process [36]. Upstream owners should initiate the establishment of an information-sharing platform. Downstream end-user enterprises should actively respond to enhance PBSC synergy, increase joint abatement benefits, and mitigate the adverse impact of free-rider behavior [17]. The information-sharing platform should adopt the following optimization measures: (1) Use API, EDI, and other real-time data exchange technologies to realize real-time data transmission and update and enhance PBSC synergy. (2) Employ firewalls, intrusion detection, and defense systems to enhance privacy protection, ensure data security, and prevent free-riding by downstream participants. (3) Establish a project-centric information-sharing database, reduce information redundancy through standardized design, and enhance collaboration efficiency. The government, industry associations, and other entities can intervene in the PBSC to guide the establishment of a cost-compensation mechanism, optimize the benefit-distribution mechanism, reduce free-riding, and enhance participants’ enthusiasm for emission reduction [41].
- External parties in PBSC should insist on punishment over reward and adopt differentiated instruments. Negative incentives play a significant role in reducing emissions. Section 4.5.6 and Section 4.5.7 reveal that external incentives, whether positive or negative, significantly impact PBSC emission reduction. By strengthening regulatory measures from governments and environmental agencies [50], enhancing consumer awareness of green products, and increasing costs for non-compliant participants, losses can be amplified to compel the main parties to reduce emissions. The focus is on enterprises involved in operation and maintenance. Positive incentives should be targeted at the planning, design, production, and construction stages [4,11,17], with the following measures adopted: (1) The government can reduce uncertainty by introducing supportive policies, guiding public opinion, and providing financial subsidies. (2) The market is the environment for PBSC operation. Stable and orderly building materials, carbon trading, and talent markets facilitate smooth PBSC operations, lower participants’ perceived emission reduction risks, and reduce reserved risk-mitigation costs. (3) Colleges, universities, banks, tech firms, etc., should collaborate via joint training and research, and lower financing thresholds, to help PBSC participants overcome difficulties and promote emission reductions.
- Establish a cross-industry information-sharing platform to optimize PBSC’s information-sharing mechanism and enhance participants’ information processing capabilities [56]. Section 4.5.3 and Section 4.5.8 indicate that both the agent’s information processing capacity and the environmental information content are crucial for PBSC emission reduction. Governments and industry associations should take the lead in establishing a cross-departmental comprehensive information sharing platform, integrating market dynamics, policies, regulations, and technological progress, and breaking information silos. In addition, the platform should actively optimize the information sharing mechanism to reduce participants’ difficulty in collecting and using: (1) Develop harmonized standards to ensure accurate and reliable information. (2) Establish an incentive system to encourage units to share information through financial support, co-operation opportunities, etc. (3) Adopt advanced technologies like cloud computing, big data, IoT, and blockchain to enhance the efficiency and accuracy of information sharing. Within the PBSC, the BIM platform and carbon dashboard can provide digital project information and monitor carbon emissions in real time [84]. They can also link with external information platforms to attract more enterprises to participate in information sharing, increase transparency, and enable participants to obtain personalized information. PBSC participants should enhance their emission reduction awareness, actively seek related technologies, knowledge, and information, establish a professional information analysis team to collect and analyze market-related emission reduction information and feedback from other entities, providing a scientific basis for decision-making, and conduct staff training to improve emission reduction awareness and information processing capabilities, thereby increasing benefits [38].
6. Conclusions
6.1. Implications
6.2. Limitations
6.3. Future Work
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Abbreviations
PBSC | Prefabricated Building Supply Chain |
PB | Prefabricated Building |
X | Planning and Designing Party |
Y | Production and Construction Party |
Z | Operation and Maintenance Party |
U | Dismantling and Recycling Party |
Appendix A
Appendix A.1. Existence and Uniqueness Proof
Appendix A.2. Stability Condition Derivation
Appendix B. Expert Interview Process
- Experts generally agree that in PBSCs, X and Y have significant inputs in abatement cost, whereas Z and U have relatively minor inputs.
- In PBSCs, the value-added benefits of joint abatement are approximately 30–70% of those from individual abatement and rarely exceed 100%. Free-riding in emission reduction does exist but can be mitigated through enhanced corporate prevention measures. Free riders are predominantly downstream firms, though some homogeneous firms also engage in free-riding, with the free-riding benefits typically accounting for 0–50% of individual emission reduction benefits.
- Experts generally concur that it is challenging for enterprises to gather all market-related emission reduction information, with collection rates typically ranging from 40% to 90%. University-based experts primarily rely on online platforms for information collection. A few corporate experts noted that their companies have proprietary collection channels, information networks, and public channels. The acquisition of most information is either free or low-cost. However, information processing and benefit realization are complex, demanding time, resources, and labor costs. In addition to the costs of information collation, analysis, and verification, additional costs are incurred to achieve benefits. For example, in selecting emission reduction technology, a comparative study of various information is required to choose the optimal solution, and costs are incurred to introduce the technology. After consulting some experts, it is found that the benefit-to-cost ratio obtained by enterprises through information processing alone generally ranges from 0.5 to 2.
- External policy support for PBSCs is in place but is characterized by its timeliness and regional nature. The overall support intensity aligns broadly with the market situation, and the data in relevant policy documents and reports are sufficient to support the model. However, experts noted that in implementation, factors such as local economic level, enterprise strength, and project-specific conditions can affect the degree and ease of obtaining support.
- Experts generally agree that despite regional variations in losses faced by enterprises without emission reduction, external supervision remains the primary source of these losses. Experts from Beijing noted that the capital’s stringent environmental regulations and dense population lead to a higher probability of uncertain losses due to complaints. Though resident complaints incur losses for enterprises, external supervision is more prominently reflected in economic terms. Experts from Baoding indicated that losses from non-reduction primarily stem from government regulation. Experts agree that the primary damage stems from government regulations, which are consistent and reliable nationwide.
- Experts indicated that in drafting enterprise contracts, clauses involving breach-of-contract fines are strictly formulated by the law, while both parties reasonably negotiate other specific implementation details. In most cases, the parties rigorously adhere to the contract, especially regarding breach-of-contract penalties involving significant interests. However, given the complexity and dynamic nature of PBSC operations, changes may occur in cases of force majeure, major policy shifts, or contract disputes. These cases are rare and can be disregarded in parameter settings.
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Parameter | Definition and Explanation |
---|---|
Benefits of emission reductions when the agent implements an “abatement” strategy, such as economic benefits from reduced energy consumption and shorter construction periods. | |
External damages faced by the agent when implementing a “no-abatement” strategy [28], such as fines from environmental protection authorities for exceeding emission standards and conflicts with the public due to environmental pollution. | |
When X implements an “abatement” strategy, there is a contractual relationship with the downstream party i, requiring i to pay a penalty to X for non-abatement. For example, a contractor’s failure to meet green construction requirements would necessitate payment of liquidated damages to the owner as per the agreement. | |
Abatement costs are incurred by game players when implementing an “abatement” strategy. These include the cost of purchasing environmentally friendly materials and introducing advanced technology. | |
The efficiency of absorbing spillover information when the agent implements an “abatement” strategy [56]. This refers to the ratio of the amount of information related to emission reductions obtained by an agent to the total amount of information. | |
The transformative capacity of an agent to transform information into actual benefits when implementing an “abatement” strategy [56]. When the agent organizes and analyzes the data and decides whether to acquire technology, how much material to acquire, etc., it can lead to economic benefits. This indicator refers to the benefit the agent receives from the unit of information. | |
Coefficient of value-added return on joint abatement by i for agent i when agent i and agent j implement “abatement” strategies simultaneously [36,41]. | |
Coefficient of free-rider benefit can be obtained by i when the upstream party j implements an “abatement” strategy and the downstream party i implements a “no-abatement” approach, where [41,57,58]. | |
Incentives received from the government, industry associations, etc., when the agent of the game implements an “abatement” strategy [34,35], such as government green subsidies, industry honors, and awards. | |
Costs can be reduced when the agent implements an “abatement” strategy with the assistance of external financial institutions, raw material markets, etc. [32,33]. For example, carbon markets reduce carbon trading costs by waiving transaction fees, and banks reduce financing costs by shortening procedures. | |
Content of knowledge, technology, and other information outside the PBSC relevant to carbon reduction [29,30,31], such as advanced technologies, incentives, and prices of environmentally friendly materials. |
Strategy Set | Payoff | Strategy Set | Payoff | Strategy Set | Payoff | Strategy Set | Payoff |
---|---|---|---|---|---|---|---|
(1, 1, 1, 1) | (1, 0, 1, 1) | (0, 1, 1, 1) | (0, 0, 1, 1) | ||||
(1, 1, 1, 0) | (1, 0, 1, 0) | (0, 1, 1, 0) | (0, 0, 1, 0) | ||||
(1, 1, 0, 1) | (1, 0, 0, 1) | (0, 1, 0, 1) | (0, 0, 0, 1) | ||||
(1, 1, 0, 0) | (1, 0, 0, 0) | (0, 1, 0, 0) | (0, 0, 0, 0) |
Production and Construction Party (Y) | Operation and Maintenance Party (Z) | |||
---|---|---|---|---|
Abatement (z) | No-Abatement (1 − z) | |||
Dismantling and Recycling Party (U) | ||||
Abatement (u) | No-Abatement (1 − u) | Abatement (u) | No-Abatement (1 − u) | |
Abatement (y) | ||||
No-abatement (1 − y) | ||||
Production and Construction Party (Y) | Operation and Maintenance Party (Z) | |||
---|---|---|---|---|
Abatement (z) | No-Abatement (1 − z) | |||
Dismantling and Recycling Party (U) | ||||
Abatement (u) | No-Abatement (1 − u) | Abatement (u) | No-Abatement (1 − u) | |
Abatement (y) | ||||
No-abatement (1 − y) | ||||
Conditions | Numerical Setting | Stability Point |
---|---|---|
Condition 1:
| (0, 0, 0, 0) | |
Condition 2:
| (1, 1, 1, 1) |
Planning and Designing Party (X) | Production and Construction Party (Y) | Operation and Maintenance Party (Z) | Dismantling and Recycling Party (U) | ||||
---|---|---|---|---|---|---|---|
7 | 10 | 5 | 8 | ||||
3 | 5 | 5 | 4 | ||||
22 | 4 | 2.5 | 1 | ||||
1 | 29 | 16 | 15 | ||||
1 | 2 | 1 | 1 | ||||
2 | 1 | 1 |
Strategy Probability | Mean | Standard Deviation | Median | ||||||
---|---|---|---|---|---|---|---|---|---|
Agent | Max | Min | Mean | Max | Min | Overall | Max | Min | Mean |
X | 0.96 | 0.79 | 0.93 | 0.24 | 0.08 | 0.15 | 0.99 | 0.86 | 0.98 |
Y | 0.98 | 0.76 | 0.96 | 0.32 | 0.08 | 0.17 | 1.00 | 1.00 | 1.00 |
Z | 0.97 | 0.84 | 0.96 | 0.24 | 0.08 | 0.14 | 1.00 | 0.98 | 1.00 |
U | 0.98 | 0.92 | 0.97 | 0.15 | 0.06 | 0.10 | 1.00 | 1.00 | 1.00 |
Question Number | Question |
---|---|
1 | What is your age? |
2 | What is your gender? |
3 | What is your occupation? |
4 | What is your current working area? |
5 | How many years have you been engaged in work or research related to PBSC carbon emission reduction? |
Question Number | Question |
---|---|
1 | What is the approximate order of emission reduction input costs among the Planning and Designing Party (X), Production and Construction Party (Y), Operation and Maintenance Party (Z), and Dismantling and Recycling Party (U) in PBSC? |
2 | What is the percentage of emission reduction costs in PB projects, and what are the primary related aspects? |
3 | What percentage of value-added benefits do enterprises obtain from joint emission reduction in PBSC compared to individual emission reduction benefits? |
4 | Is there free-riding in PBSC emission reductions? If so, how is it manifested, and what percentage of free-riding benefits corresponds to the benefits of abatement alone? |
5 | What methods do companies typically use to gather emission reduction-related information, and what percentage of market information can be effectively collected? |
6 | How do you evaluate enterprises’ ability to process collected emission reduction information? |
7 | Have the relevant supporting policies and measures for enterprise carbon emission reduction been effectively implemented? Could you elaborate? |
8 | What losses do enterprises face if they do not reduce emissions? Will it have a specific impact on the economy, and how? |
9 | Is the contract implementation among PBSC enterprises adequate, and are the provisions related to emission reduction strictly enforced? |
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Wang, H.; Li, L.; Guo, C.; Zhu, R. Research on Stochastic Evolutionary Game and Simulation of Carbon Emission Reduction Among Participants in Prefabricated Building Supply Chains. Appl. Sci. 2025, 15, 4982. https://doi.org/10.3390/app15094982
Wang H, Li L, Guo C, Zhu R. Research on Stochastic Evolutionary Game and Simulation of Carbon Emission Reduction Among Participants in Prefabricated Building Supply Chains. Applied Sciences. 2025; 15(9):4982. https://doi.org/10.3390/app15094982
Chicago/Turabian StyleWang, Heyi, Lihong Li, Chunbing Guo, and Rui Zhu. 2025. "Research on Stochastic Evolutionary Game and Simulation of Carbon Emission Reduction Among Participants in Prefabricated Building Supply Chains" Applied Sciences 15, no. 9: 4982. https://doi.org/10.3390/app15094982
APA StyleWang, H., Li, L., Guo, C., & Zhu, R. (2025). Research on Stochastic Evolutionary Game and Simulation of Carbon Emission Reduction Among Participants in Prefabricated Building Supply Chains. Applied Sciences, 15(9), 4982. https://doi.org/10.3390/app15094982