System dynamics (SD) application in carbon trading research in the construction industry: a systematic review

Carbon trading has been identified as an effective and economical mechanism in reducing carbon emissions. There is a notable scarcity of comprehensive reviews on system dynamics (SD) modelling application within carbon trading research in construction. The aim of this study is to review system dynamics application in carbon trading in the construction industry. Scopus and Web of Science were the databases adopted. Relevant keywords aided by Boolean search operators were used. Of 67 articles retrieved, a two-stage filtering was undertaken. The final number of articles adopted for analysis was 42. Content analysis was used to extract and synthesize the findings. From the findings, the most significant applications of SD in carbon trading in construction include carbon trading price forecasting, efficiency of emissions trading scheme, impact of carbon quota allocation, and simulation of carbon emission reduction in the construction industry. This study has significant implications and through this review paper, practitioners can easily be more familiar with system dynamic modelling techniques. This will motivate them to better understand their application in carbon trading research in the construction industry