Construction and Demolition Waste Management in the UAE

The kind of market failures identified

Waste management and energy conversion are profitless in terms of revenue growth and overall productivity. To mitigate the potential economic losses, the company-initiated registration, consultancy, and certification services. The company needs more green investing – a business practice to support the groups that positively affect the environment. It is possible to mitigate the instances of market failure through thorough planning and support policies (Cherry, 2017)

The current market failure can be identified as the failure to develop control tools for implementing the waste management program.

The failure to address the issue of green investment and the promotion of effective waste management has been selected as the main point of concern.

Positive and Negative Externalities

The key externalities considered in this presentation include both positive and negative ones. The negative externalities embrace the entirety of factors preventing the policy from being implemented, whereas the positive ones incorporate those conducive to the policy implementation. In this presentation, the failure to implement waste management in the Dubai construction industry will be considered based on the article by Mawed et al. (2020).

Green Energy Solutions & Sustainability Overview

primary areas of development and concerns for Green Energy Solutions & Sustainability

*The figure depicts the primary areas of development and concerns for Green Energy Solutions & Sustainability

Currently, the construction industry represents the main point of concern since it has failed to comply with the set requirements for waste management due to a drop in profits that alignment with environmental regulations entails.

Government Intervention

The Dubai Integrated Waste Management Master Plan 2012 – is one of the most fundamental programs that the government initiated to stimulate sustainability. Dubai Municipality cooperates with many official and commercial organizations to achieve this goal, and GESS is one of them (“About us,” n.d.). The practice shows the government needs to allocate additional funds to support this development course.

Impact on Social Welfare

The UAE government initiated the waste management plan to improve the overall environmental situation and have a positive impact on social welfare.

Government intervention cannot solve all the potential problems of sustainable development.

The intense taxes and regulations might significantly change the national economy and be harmful to a large number of organizations.

Therefore, even though government intervention may have a positive impact on social welfare, it is important to limit the regulations (Horne, 2019).

Changes in the attitudes toward waste management and the regulations addressing it have affected the level of social welfare, causing a drop in the financial well-being of citizens and increasing the extent of government costs.

Outcomes Assessment

Given the current state of managing the environmental concern, the outcomes of the program have not been fully achieved yet despite the introduction of the GESS framework. However, since the goals set in the Dubai Integrated Waste Management Master Plan 2012 set the course for 2030, the effects of the proposed intervention are yet to be fully observed and evaluated (“Waste management,” 2020). Currently, noticeable improvements have been recorded in regard to the waste management processes in the Dubai setting (Owen et al., 2020). Specifically, reports point to a significant drop in the levels of waste produced in the course of managing resources (UAE Government, 2021). The implementation of the GESS approach has indicated a positive shift in the overall performance of organizations (UAE Government, 2021).

Overall, the outcomes of the waste management plan have been unsatisfactory so far; however, certain advantages can be outlined, such as a drop in waste production rates.

Additionally, regulations for handling toxic waste and minimizing its effects have been developed. Similarly, standards for waste management have become more homogenous. Specifically, the Dubai Municipality has managed to achieve the goal set previously in regard to sustainability management (increasing waste management efficacy to 7%) (UAE Government, 2021). Additionally, new goals and milestones for improving the extent of compliance with set environmental standards, specifically requirements for waste management, have been set. The amount of waste diverted from being dumped into water has increased to a total of 85% in Dubai (UAE Government, 2021). Standards for managing specific waste types, namely, the transportation of hazardous waste, have been established and written into the law, therefore, implying that companies must comply with the newly designed requirements, contributing to the improvement in waste management and reducing the level of pollution. Still, the current state of implementing the waste management plan can be considered as failure due to the lack of control over the process.


About Us. (n.d.). Green Energy Solutions & Sustainability.

Cherry, T. L. (2017). Accepting market failure: Cultural worldviews and the opposition to corrective environmental policies. Journal of Environmental Economics and Management, 85, 193- 204.

Horne, C. L. (2019). Public health, public goods, and market failure. Public Health Ethics, 12(3), 287-292.

Mawed, M., Al Nuaimi, M. S., & Kashawni, G. (2020). Construction and demolition waste management in the UAE: Application and obstacles. International Journal, 18(70), 235-245.

Owen, J. R., Zhang, R., & Arratia-Solar, A. (2020). On the economics of project-induced displacement: A critique of the externality principle in resource development projects. Journal of Cleaner Production, 285, 123-137.

UAE Government. (2021). Waste management.

Waste management. (2020). UAE Government Portal.

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