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<p>This paper investigates the effect of dynamic subsidy and consumer preference on the prefabricated building diffusion under emission trading scheme. Prefabricated building is considered an effective way to reduce emissions. To effectively promote prefabricated building diffusion, the government provides subsidy to developers under emission trading scheme and improves prefabricated building consumer preference depending on technical level, government quota, and promotional measures (subsidy, publicity, etc.). In this context, an evolutionary game approach is developed to analyze the government-developers’ game interaction under different subsidy mechanisms and examine the effects of relevant factors on prefabricated building diffusion. Results show that: (1) compared to static subsidy, the dynamic subsidy can improve the current instability in the prefabricated building market. (2) The subsidy level has a dual effect on prefabricated building diffusion under dynamic subsidy adjustment mechanism, which means that while subsidy can increase prefabricated building diffusion, excessive subsidy would reduce the effectiveness of subsidy in promoting prefabricated building diffusion. (3) Consumer preference can effectively facilitate prefabricated building diffusion compared with other factors. The technical level is pivotal in enhancing prefabricated building consumer preference, and government quota and promotional measures should be employed to mitigate the adverse effects of technical level. (4) The emission trading scheme has a weak facilitating effect on prefabricated building diffusion. Compared with previous studies on prefabricated building diffusion, this paper proposes a dynamic subsidy adjustment mechanism and demonstrates its effectiveness in promoting prefabricated building diffusion, explores technique and policy to cultivate prefabricated building consumer preference, and identifies and discusses shortcomings of ETS. This paper offers government a potential policy implementation integrating subsidy, consumer preference, and ETS on promoting prefabricated building diffusion.</p>

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The effect of dynamic subsidy and consumer preference on prefabricated building diffusion under emission trading scheme

  • 期刊论文

  • 发表日期：

    2025年8月22日

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  • Shidong Li,
  • Qiang Du,
  • Xiaoyan Wang,
  • Jinzhao Shi,
  • Yerong Zhang

摘要

This paper investigates the effect of dynamic subsidy and consumer preference on the prefabricated building diffusion under emission trading scheme. Prefabricated building is considered an effective way to reduce emissions. To effectively promote prefabricated building diffusion, the government provides subsidy to developers under emission trading scheme and improves prefabricated building consumer preference depending on technical level, government quota, and promotional measures (subsidy, publicity, etc.). In this context, an evolutionary game approach is developed to analyze the government-developers’ game interaction under different subsidy mechanisms and examine the effects of relevant factors on prefabricated building diffusion. Results show that: (1) compared to static subsidy, the dynamic subsidy can improve the current instability in the prefabricated building market. (2) The subsidy level has a dual effect on prefabricated building diffusion under dynamic subsidy adjustment mechanism, which means that while subsidy can increase prefabricated building diffusion, excessive subsidy would reduce the effectiveness of subsidy in promoting prefabricated building diffusion. (3) Consumer preference can effectively facilitate prefabricated building diffusion compared with other factors. The technical level is pivotal in enhancing prefabricated building consumer preference, and government quota and promotional measures should be employed to mitigate the adverse effects of technical level. (4) The emission trading scheme has a weak facilitating effect on prefabricated building diffusion. Compared with previous studies on prefabricated building diffusion, this paper proposes a dynamic subsidy adjustment mechanism and demonstrates its effectiveness in promoting prefabricated building diffusion, explores technique and policy to cultivate prefabricated building consumer preference, and identifies and discusses shortcomings of ETS. This paper offers government a potential policy implementation integrating subsidy, consumer preference, and ETS on promoting prefabricated building diffusion.