Theoretical Framework for Carbon Trading in Construction Industry: A PROMISE Framework and System Dynamics (SD) Causal Loop Diagram (CLD) Approach

Carbon emissions trading from past studies has been recommended as effective in minimizing future levels of carbon emissions. The aim of this paper is to develop a theoretical framework for a construction industry carbon trading system by identifying the categorizations in the system and their influences. The theoretical framework in this study was developed using the PROMISE Framework. PROMISE is an acronym representing Personal, Relational, Organizational, Market, Institutional, Social, and Environmental. The Scopus database was used in the selection of articles. Using the System Dynamics (SD) Causal Loop Diagram (CLD) approach, the positive and negative influences among the variables in the seven categories were evaluated and illustrated. This study is significant and provides a foundation for future researchers to develop conceptual frameworks and models for carbon mitigation strategies. For policy makers, the proposed carbon trading framework assists in evaluating the key legal, economic, environmental, and political policies that can improve carbon trading projects in the built environment. When policy makers place significant emphasis on the influences identified in this study, it will contribute to them supporting regulations and policies that effectively mitigate these emissions.