Stackelberg game-based method towards carbon-economy equilibrium for the prefabricated construction supply planning: A case study from China

Prefabricated building systems that take advantage of modern manufacturing, transportation, and assembly approach has attracted great attention as a solution for sustainable city and urban construction carbon emissions mitigation, especially under the 30% prefabrication of new buildings target in China's development plan of the construction industry. Nevertheless, few research has focused on the carbon reduction/economic costs equilibrium for the integrated traditional and prefabricated construction supply planning (PCSP). Aiming at the sustainable construction for urbanization, this study develops a stackelberg game-based method for economic and environmental equilibrium under the carbon allocation scheme in an integrated prefabricated construction supply planning. In the bi-level model, the regional authority on the upper level determines the carbon allocations and the enterprises on the lower level develop plans to maximize revenue under the prefabricated rate targets and construction supply logistics limitations. The superiority and practicality of the proposed methodology are then validated through a case study from China. The scenarios analyses under different policy control levels indicate that the proposed methodology is capable of systematically controlling the integrated PCSP carbon emissions and promoting the low-carbon transformation and sustainable development of construction industry. Valuable managerial implications are also provided for the policymakers and relevant practitioners.