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Research on an Incentive Mechanism Based on the Principal-Agent Model for the Circular Economy in Construction Enterprises
Author(s): 
Pages: 54-59
Year: Issue:  1
Journal: Journal of Wuyi University(Natural Science Edition)

Keyword:  construction enterprisescircular economyincentive mechanismprincipal-agent model;
Abstract: In order to promote the development of the circular economy in construction enterprises and realize the sustainable development of the whole construction industry,this paper analyzes the necessity of the development of the circular economy in construction enterprises and establishes a mechanism model for the government to encourage construction enterprises to pursue circular economy. Cost is derived for the circular economy activities whether the enterprise effort level is observable or unobservable. Further research results show that when enterprises expand their scale of production,their subsidies obtained from the government will also increase correspondingly.
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