Development Bank of Japan
Research Report
No. 28

Urban Renewal and Resource Recycling:
For the Creation of a Resource Recycling Society

July 2002

Economic and Industrial Research Department
Development Bank of Japan

Contents
Summary ............................................................................................................................................... iii
Introduction ............................................................................................................................................1
I

Prospects for Recycling Construction Wastes..............................................................................3
1. Introduction...............................................................................................................................3
2. Trends in Japan’s Construction Stock.......................................................................................3
3. Calculation Conditions .............................................................................................................4
4. Outline of Calculations .............................................................................................................7
4.1 Buildings.........................................................................................................................7
4.2 Civil Engineering............................................................................................................8
4.3 Relationship with Census Surveys..................................................................................9
5. Calculation of the Output of Construction Wastes..................................................................13
5.1 Trends in the Output of Construction Wastes ...............................................................13
5.2 Problems with Waste Construction Soil .......................................................................13II

Recycling Industries and the Impact of the Construction Materials
Recycling Act.................................................................................................................................17
1. Present State of Construction Waste and the Construction Materials Recycling Act .............17
1.1 Present State of Construction Waste .............................................................................17
1.2 Introduction of the Construction Materials Recycling Act...........................................17
2. Recycling Industries and the Impact of the Construction Materials Recycling Act ...............23
2.1 The Construction Waste Recycling Market (intake theory) .........................................23
2.2 Problems of Receptors for Recycled Resources (outlet theory) ...................................27
2.3 Efforts Aimed at Forming Recycling Industries ...........................................................30
2.4 Policy Tasks ..................................................................................................................35
3. Problems Concerning Waste Construction Soil ......................................................................36
3.1 Problems with Waste Construction Soil .......................................................................36
3.2 Characteristics of the Environmental Remediation Industry........................................37
3.3 Changes due to the Introduction of Legislation............................................................38

III Developments Aimed at Prolonging Service Life.......................................................................40
1. Moves to Prolong Service Life ...............................................................................................40
2. Changes in the Economic Climate and the Development of Policies.....................................41
3. Conclusion ..............................................................................................................................41
References .............................................................................................................................................43

Development Bank of Japan Research Report/ No. 28iUrban Renewal and Resource Recycling:
For the Creation of a Resource Recycling Society
Summary
1. Construction stock in Japan has continued toincrease more or less consistently since the war.
Compared to FY1960, the total floor space ofbuildings multiplied nearly 4-fold to 7.4 billion
square metres in FY2000 and the value of social
infrastructure stock nearly 14-fold to 617 trillion
yen in FY1993, at 1990 prices. There are fears
that the output of construction waste accompanying the renewal of this stock will increase in
future. The actual degree of stock demolition is
influenced by trends in new construction investment. However, assuming a constant probabilityof stock obsolescence with age, we may expect
marked increases in output over the next ten
years. These will mainly involve non-timberbuildings, which increased greatly in the 1970’s,
and social infrastructure in the public engineering sector.
2. Taking the example of buildings, if we assume the average life of timber buildings to be
33 years, that of non-timber buildings to be 40
years, and that of civil engineering structures tobe their corresponding service life, we may calculate that the total output of construction waste(excluding waste construction soil) would increase 2-fold to 313 million tons in FY2010 and
2.7-fold to 415 million tons in FY2030, compared to the figures for FY2000. In particular, inthe period from FY2000 to FY2010, whenbuildings constructed in the 1970’s reach therenewal phase, a high average increase rate of
7.5% p.a. is forecast. Meanwhile, if we estimate
the volume of waste construction soil arisingfrom construction on a civil engineering works
basis, we obtain increases of about 1.6-fold in
FY2010 and about 2-fold in FY2030 comparedto FY2000, as with other construction wastes.
3. The output of industrial waste in Japan has
been at the level of 400 million tons per year inrecent times. The weight of the construction in-

dustry within this is around 20%, exceeded only
by agriculture and the electricity, gas, heating,
and water supply industries. Comparing the stateof processing to that of all industrial waste, therecovery rate (mainly involving waste concrete
and waste asphalt concrete) is higher, but theweight of final disposal is also much higher thanthe overall average (all industrial waste 18%,
construction waste 42%). Construction waste
also accounts for around 70% of cases and 40%of the weight of illegal dumping. Based on thispresent situation of construction waste and theanticipated increase in future, the Construction
Materials Recycling Act was enacted in May
2000. This established a new framework that
includes an obligation to sort and recycle dismantled materials in construction work exceeding a certain scale.
4. In the course of improving recycling rates
for materials targeted by the Construction Materials Recycling Act (waste concrete, waste asphalt concrete, and waste construction timber),the processing demand that is expected to occur
in future (i.e. the difference between the demand
if the previous processing level were maintained
and that sought by the Act) will reach around
120 million tons by the year 2010, and will continue to increase gradually thereafter. In terms ofweight composition, the majority will be taken
up by waste concrete, whose output is increasing
most markedly. This will be processed on site or
in dedicated plants, and recycled into basecourse
and other materials. Calculating the market scale
for these on the assumption that the recycling
cost basis (acceptance) will remain at present
levels, the value of newly recycled materials in
future would reach around 400-500 billion yen,and the acceptance volume of the constructionwaste recycling market (excluding waste construction soil), combined with the already existing volume, would be around 800-900 billion
yen per year.

Development Bank of Japan Research Report/ No. 28iii

5. However, while output grows markedly andthe acceptance volume increases, the number ofreceptors (outlets) for recycled resources is limited. In future, therefore, we will need to expand
the uses of recycled resources in order to establish this business as “recycling business” in thetrue sense. For the time being, the principal
problems appear to be (1) waste concrete (recycled aggregate, etc.) that cannot be absorbed byconventional uses such as basecourse materials,
and (2) waste construction timber, whose level ofprocessing and recycling needs to be dramatically upgraded under the provisions of the Act.
Along with these, technical development aimed
at efficient recycling of construction sludge,
mixed waste, and others is also expected to progress.
In this sector, the development of new technology for recycling aggregate into mainframe
concrete, etc., the development and introductionof on-site recycling machinery, and other business activities aimed at expanding markets are
expected to become more lively, especially in the
non-ferrous metals and construction machineryindustries, and are expected to develop further infuture. Meanwhile, there are increasingly lively
moves, mainly among the leading general construction companies that issue contracts for work,
to support recycling projects in terms of bothintake and output. These include the rigorous
implementation of sorted dismantling and an
expansion of green purchasing aimed at making
positive use of recycled resources. These lead to
expectations of reciprocal effects. Based onmoves such as these, support is surely also needed from the policy side, such as creating a systemof quality standards for recycled resources andaiming for positive use in public works. The
development of a monitoring system

to guarantee this system of quality standards isalso to be expected.
6. In preparation for the coming expansion of
construction waste accompanying the renewal ofbuildings and social infrastructure from the eraof rapid growth, Japan created a system of construction recycling ahead of other countries. In
future, to achieve further progress in technicaldevelopment aimed at efficient recycling now
being positively pursued, backing from government policy to promote the expanded use of recycled materials will surely become even more
important. Meanwhile, promoting long service
life construction that facilitates sorted dismantling is an important task for the coming
decades. In this sector, too, various technicalinnovations are evident, such as maintenancetechnology for existing buildings and the development of new materials. These innovations
include some from which major effects may be
expected across the whole spectrum of the urban
environment, such as preventing heat islands andimproving scenery, in the case of rooftop garden
technology. The development of government
policies aimed at diffusing these is also to be
expected.
Studies are now underway for a debate on
urban renewal. The aim of this is to re-examine
Japanese cities from a variety of angles, including amenities and the efficiency of economic
activity, in an attempt to upgrade the levels ofthese. With the renewal phase of large-scale
stock nearly upon us, one could hope that thisdebate will develop in a way that will fully incorporate measures in environmental aspects(such as resource recycling), especially as it represents a timely attempt to define the new imageof Japanese cities.

[Keisuke Takegahara (e-mail: ketakeg@dbj.go.jp)]

iv

Development Bank of Japan Research Report/ No. 28

Introduction
A debate on urban renewal is now underway.
Broadly positioned as a measure for maintaining
and improving Japan’s competitiveness, this is
an attempt to revise the conventional image of
cities in a variety of ways. For example,
strengthening international transport and distribution functions by improving airports, roads,
and other infrastructure, developing wide-areadisaster prevention systems, achieving symbiosis
with the environment, and so on. Upgrading theexisting structure of cities through urban renewal
could also be seen as a process of reviewing thestock that has been accumulated so industriously
until now, and reshaping it into an optimal state.
The impact of these efforts will be far-reaching.
Of the issues they will affect, this survey takes
up that of recycling, and examines the problemsof cities from this perspective.
In doing so, the central focus is on concernthat the output of construction waste will increase at an unprecedented pace, given that theconstruction stock that was so rapidly accumulated during the era of high economic growth is
now reaching the renewal phase. In Japan, legislation in this sector (the Construction Materials
Recycling Act) was enacted earlier than in othercountries, and a policy framework to counter thisproblem is now being created. However, many
problems are still thought to remain before therecycling industry sector can efficiently process
the burgeoning volume of construction waste
within the new framework. In this point lies themain concern of this survey. Besides this, therenewal of construction stock and changes in theuse of land accompanying it have the potential toexert a major influence on trends in construction
recycling, hand-in-hand with the measuresagainst soil pollution now being debated. Therefore, taking these soil pollution countermeasures
as part of the construction recycling sector in the
broad sense, this survey will additionally analyze
the present situation and study future developments.
In the first section, as a premise to the debate, the future output of construction wastes,
expected to increase in line with the renewal ofstock, will be calculated with a view to identifying its impact. On the premise of the calculated
output, the second section will examine the developments shown by the recycling market inrelevant sectors. It will also look at the preparation of other policy systems following the enactment of the Construction Materials Recycling
Act, including the technological seeds being
presented in these various sectors. Finally, theforegoing discussion will be summarized in connection with the problem of prolonging service
life, an issue that affects the generation of byproducts.

Development Bank of Japan Research Report/ No. 28

1

of cities from this perspective. In this section, weshall examine trends in construction waste generated by the renewal of construction stock.

I Prospects for Recycling
Construction Wastes
1.

Introduction

2. Trends in Japan’s Construction StockA debate on urban renewal is now underway.
Broadly positioned as a measure for maintaining
and improving Japan’s competitiveness, this is
an attempt to revise the conventional image of
cities in a variety of ways. For example,
strengthening international transport and distribution functions by improving airports, roads,
and other infrastructure, developing wide-areadisaster prevention systems, achieving symbiosis
with the environment, and so on. Upgrading theexisting structure of cities through urban renewal
could also be seen as a process of reviewing thestock that has been accumulated so industriously
until now, and reshaping it into an optimal state.
The impact of these efforts will be far-reaching.
Of the issues they will affect, this survey takes
up that of recycling, and examines the problems

Construction stock in Japan has continued toincrease more or less consistently since the war.
Figure 1-1 shows trends in construction stock(total floor space), revealing that the total stockarea has multiplied nearly 4-fold to 7.4 billion
square metres in FY2000 over the last 40 years.
As to the rate of increase, timber buildings havebeen increasing fairly steadily, while non-timberbuildings suddenly accumulated in the era of
rapid economic growth, thereafter stabilizing at
steady growth of a few percent. Fig. 1-2 shows
the construction start floor space (flow) per fiscal
year. Here, too, non-timber buildings increased
at a high level until the first half of the 1970’s,
with another temporary rise from the end of the
1980’s to the beginning of the 1990’s.

25

8,000
Non-timber
非木造Timber
木造
増減率（非木造
右目盛）
Rate of change (non-timber/ right-hand scale)
増減率（木造
右目盛）
Rate of change (timber/ right-hand scale)

7,000

20

6,000

5,000
Million m

2

15
%

4,000
10

3,000

2,000
5
1,000

2000

98

96

94

92

90

88

86

84

82

80

78

76

74

72

70

68

66

64

62

0
60

0

Fiscal Year

Fig. 1-1 Trends in Construction Stock Area
Source: Ministry of Public Management, Home Affairs, Posts and Telecommunications (Ministry of Home Affairs),“Outline Record of Fixed Asset Prices, etc. (Land, Houses, and Depreciable Assets)”

Development Bank of Japan Research Report/ No. 28

3

250,000
Timber
Non-timber
200,000

Thousand m2

150,000

100,000

50,000

99

97

95

93

91

89

87

85

83

81

79

77

75

73

71

69

67

65

63

61

0

Fiscal Year

Fig. 1-2 Trends in Construction Start Floor Space
Source: Construction Statistics Annual ReportTurning now to social infrastructure, Fig. 1-3
shows the total value of social infrastructure
stock in Japan as estimated by the Cabinet Office(Economic Planning Agency) at 1990 prices. It
reveals that the stock multiplied nearly 14-foldover the space of 40 years to 617 trillion yen in
FY1993, showing that the development of infrastructure advanced steadily over that period. As
with construction stock, the rate of increase expanded significantly until the first half of the
1970’s, but then gradually slowed down, except
in special cases related to the privatization of thenational railways. Fig. 1-4 shows these trends interms of the public works completion turnover(flow) for each fiscal year.
Both construction and social infrastructure
stock accumulated dramatically in the era of
rapid growth up to the first half of the 1970’s.
But now, some 30 years since then, this stock isreaching its renewal phase. As a result, it isfeared that the output of construction waste will
increase at a pace not experienced before. Here,construction waste refer to materials produced
secondarily in the process of construction works(see Fig. 1-5). This is a broad concept that includes recyclable materials, as well as mere
waste.

4

Development Bank of Japan Research Report/ No. 28

In the first place, the actual degree to whichstock demolition occurs is affected by trends in
new construction investment. As such, the renewal of buildings and structures tends to arise notso much because they have reached the end of
their physical life as structures but rather due toother factors, such as obsolescence in terms offunctions. In view of this, there are limits tojudgements that focus only on years of service.
Nevertheless, with the dramatic upgrading andspread of information technology recently, functional obsolescence is progressing in buildings(for example, insufficient floor height), whileurban renewal projects leading to stock renewal
are starting in earnest. Considering these factors,
it is highly probable that large volumes of construction wastes will be generated intensively
over a short period in future. What, then, will be
the impact of construction wastes generated fromconstruction stock?
3.

Calculation Conditions

When considering trends in construction wastes,
the first point to be decided is whether to focus
on the generated volume or the output volume.
By “generated volume”, we refer to the total
volume of material from demolished buildings

700

16
Total value of social infrastructure stock (at 1990 prices)
社会資本ストック総額（90年価格）
Rate of change (right-hand scale)
増減率（右目盛）

14600
12Privatization of national railways

500

Privatization of NTT

10

Trillion yen

400

8
%

6

300

4
200
2
100
0

93

91

89

87

85

83

81

79

77

75

73

71

69

67

65

63

61

59

57

55

-2
1953

0

Fiscal Year

Fig. 1-3 Trends in Total Value of Social Infrastructure Stock (at 1990 prices)
Source: Economic Planning Agency (now the Cabinet Office), “Social Infrastructure of Japan”

300,000
Public works
公共土木
Private works
民間土木

250,000

150,000

100,000

50,000

99

97

95

93

91

89

87

85

83

81

79

77

75

73

71

69

67

65

63

61

0
59

Billion yen

200,000

Fiscal Year

Fig. 1-4 Trends in Value of Civil Engineering Works (at 1990 prices)
Source: Figures for FY1970-2000 are based on Overall Construction Statistics Annual Reports. Those up to 1969 are
calculated from data in “Summary of Statistics on Construction Work Orders” (Ministry of Construction) andothers. The 61 construction sector deflator in “Social Infrastructure of Japan” (Economic Planning Agency)
has been used up to 1993. From 1994, the construction investment

Development Bank of Japan Research Report/ No. 28

5Construction by-products
Recycled resources(Recycling Act)
Waste
(Waste Disposal Law)
Waste that cannot be
used as raw materials○ Toxic or hazardous material

Waste that can be usedas raw materials○ Concrete mass
○ Asphalt concrete mass
○ Waste construction timber○ Construction sludge○ Mixed construction waste

Waste that is alreadya raw material○ Waste construction soil
○ Matal scrap

Fig. 1-5 Types of Construction Wastes
Note: Construction wastes are generated both by the demolition of buildings and structures and by new construction
work.
Source:Council for PR and Promotion of Construction Waste Recycling, “Comprehensive Measures for Construction
Wastes”

and structures, which equals the total volume of
construction materials used in them. By contrast,“output volume” is the volume of constructionwastes that are not re-used on building sites but
are transported outwards. When the parameters(floor space, value) for a given demolishedbuilding or structure have been obtained, theseare multiplied by a base unit representing the
input volume of construction materials 1 (in thecase of generated volume), or by a base unit calculated from the transported volume (in the caseof output volume). Fig. 1-6 shows the size of thegap between generated volume and output volume by comparing them for buildings (input
volume of aggregate and stone, output volume ofwaste concrete). For input base units, the input
volume of aggregate and stone for timber andnon-timber structures, respectively, from theSurvey on Construction Materials and Labour
Demand by the Ministry of Land, Infrastructure
and Transport is used for the generated volume.
For the output volume, the base unit of waste
concrete (approximate to the output volume basis) is used. The latter is also used in the calculations given below. Since the demolition parameters are the same, both show the same tendency.
In terms of general levels, generated volume far
1
For pioneering research in relevant sectors using thistechnique, see Fujii (1993) (References).

6

Development Bank of Japan Research Report/ No. 28

exceeds output volume.
The cause of the difference between the twois thought to be that some of the waste generated
by demolition works are re-used or reduced onsite. In fact, the Construction Waste Processing
Manual recommends that outsourcing and contracting firms make efforts to recycle and re-use
their construction waste, stating at the outset“Waste should be converted to a form that may
be sold for value, and should be sold or used by
the generator”. Here “used by the generator”
means that a business that generates constructionwaste should attempt to use that waste for its
own purposes, on condition of suitable quality.
This shows that re-use on-site has already been
recommended in previous usage.
When calculating the impact of constructionwastes recycling, both the generated and output
volume are of significance. However, the following discussion will be developed on the basisof output volume, unless otherwise specified.
This is in view of the fact that the output basis isused both for “construction material waste” subject to recycling under the Construction Materials Recycling Act (as discussed below) and in theSurveys on Construction Wastes (referred to
below as “Census Surveys”). The latter, conducted three times so far, is the only source of datathat can be compared with the calculation results.

450
Calculation of generated volume (aggregate, stone) based on input base unit
400

Calculation of concrete waste from demolished buildings based on output volume

350

Million tons

300
Generatedvolume

250
200
150
100

Outputvolume

50

35

32

26

29

23

20

17

11

14

08

05

02

96

99

93

90

87

81

84

78

75

72

69

66

63

60

0

Fig. 1-6 Calculation Conditions (generated volume and output volume)
Source: Calculated by the DBJ from Survey on Construction Wastes, Survey on Construction Materials and Labour
Demand, etc.

4.

Outline of Calculations

The output volume of construction waste is calculated by multiplying the volume of waste generated from both buildings and civil engineering
structures (floor space and value; referred to below as “demolition parameters”) by the output
volume base unit. The demolition parameters arecalculated on the assumption that buildings orcivil engineering structures whose construction isstarted (or completed) in a certain fiscal year willreach the end of their useful life with a certain
probability after being used for a fixed period.
The probability that they will be demolished (thedemolition probability rate) may be projected ina number of ways. Here, however, as a simple
technique, we will assume a discrete density
coefficient that approximates normal distribution.2
2
We assume a density coefficient that approximates thenormal distribution (N(µ, (3.989)2)) (µ = average servicelife), taking the demolition probability rate after the average
service life as 10%. This is the same as the hypotheticaldemolition probability rate in the Building Demolition
Waste Generation Forecasts (Tokyo and 8 prefectures)
included in the Demolition and Recycling System Research

4.1 Buildings
For the construction work flow figures in eachfiscal year, forming the conditions for calculating
the demolition parameters (floor space), we use
the construction start floor space for each type ofstructure (timber, non-timber). The relevant figures are taken from the Construction Statistics
Annual Report mentioned in Fig. 1-2 above. Thisis then extended from the years 2001 to 2035 inline with the Medium to Long-Term Forecast for
the Construction Market issued by the Construction Economics Research Institute.
For the demolition probability rate, we assume a service life of 33 years for timber buildings and 40 years for non-timber, assume theabove-mentioned density coefficient approximating normal distribution with the respective
number of years as the average value, and multiply this by the flow for each year. The demolition parameters are calculated by accumulating
the results of this multiplication.
For the base unit, we divide the output ofconstruction wastes into (1) those arising fromGroup Report in October 1998.
Development Bank of Japan Research Report/ No. 28

7the demolition of buildings (the demolition type)and (2) processing waste discharged in conjunction with building work (the new constructiontype). We multiply the former by the existing
output base unit for each type of structure, andthe latter by a base unit calculated from theFY1995 Census Survey, without differentiating
between different structures. The base unitchanges with the passage of time, due to changes
in construction methods, building materials, etc.
However, in these calculations it will be kept
constant due to constraints on data availability.
Figure 1-7 shows the output volume obtained from buildings as calculated in this way. It
indicates that, since the non-timber buildings thatwere greatly accumulated in the era of rapid
growth are reaching the renewal phase, the output volume from construction works will increase over the next 10 years or so. The circles inthe diagram show the results of the three Census
Surveys held over this period.
According to this calculation, the output
volume of construction waste arising from demolished buildings will increase dramaticallyafter FY2000, multiplying more than 4-fold in
FY2010 compared to FY1995. Fig. 1-8 shows
the breakdown for different materials, revealing
that, as the demolition of non-timber buildings
advances, waste concrete accounts for the ma-

jority of the materials involved, and, moreover,accounts for the larger part of the increase.
4.2 Civil Engineering
Next, the annual flow for civil engineering works
uses the figures for public and private engineering (completed work basis) for each fiscal year
from the Overall Construction Statistics Annual
Reports mentioned in Fig. 1-4. After convertingthese to real figures (at 1990 prices) using the 61
construction sector deflator issued by the Cabinet
Office (Economic Planning Agency) and augmenting past data omissions as appropriate, abase sequence is prepared for each length ofservice life. For FY1994 onwards, when the deflator is no longer usable, the construction works
deflator (1995 prices) is converted and linked toan EPA basis for conversion to real figures.
From FY2001 on, meanwhile, both public andprivate civil engineering works remain on a par
at FY2000 amounts.
For the demolition probability rate, we assume that the statutory service life for each construction work is the average service life, andassume a density coefficient in which 10% of all
structures are demolished after the average
service life, as in the case of buildings.

250
New construction / Renovation
Non-timber total
Timber total
Census estimate

200

Million tons

150

100

50

33

30

27

24

21

18

15

12

09

06

03

97
20
00

94

91

88

85

82

79

76

73

70

0

Fig. 1-7 Output of Construction Wastes Arising from Buildings
Note:

For the construction start floor space from FY2001, we adopt the No. 1 scenario given in the Long-Term
Forecast for the Construction Market by the Construction Economics Research Institute (real GDP
growth rate: 01-10 2.0%, 11-20 2.5%), staying on a par from 2020 (until 2035).
Source: Calculated by the DBJ from Construction Statistics Annual Reports, Outline Records of Fixed Asset
Prices, etc., Surveys on Construction Wastes, Medium to Long-Term Forecasts for the Construction
Market, etc.
8Development Bank of Japan Research Report/ No. 28

250
OthersWaste plastics
Glass & ceramic scrap
Metal scrap

200

Wood scrap
Concrete mass

Million tons

150

100

50

30

33

24

27

18

21

15

09

12

03

06

97
20
00

94

88

91

82

85

76

79

70

73

0

Fiscal Year

Fig. 1-8 Calculated Output of Construction Wastes from Demolition(by the type of waste)
Source:See Fig. 1-7

There are several previously calculated datathat could be used as the base unit to be multiplied by the demolition parameters (value) thus
calculated. But all of these are problematic inthat they are not consistent with the demolition
parameters calculated as above. Thus, in thissurvey, we have prepared base units for waste
concrete, waste asphalt concrete, waste timber,construction sludge, and waste construction soil
from the demolition parameters and the FY1995
Census Survey for use in these calculations.3
Figure 1-9 shows the results thus obtained(excluding waste construction soil). The circles
in the diagram show the results of Census Surveys, as in the case of buildings. According tothis calculation, the output volume from civilengineering works will also grow to more thandouble the FY1995 level in FY2010. Moreover,as in the case of construction works, it is expected to increase vastly over the next 10 years or so.
3
The base unit for output from civil engineering works
differs greatly depending on whether calculated as a “transported volume base unit” in the 1990 Census Survey, forexample, or whether calculated from simple aggregated data
for the second half of FY1998 as a simplified census. Therefore, as indicated above, we have prepared the base unit bycombining the demolition parameters created as a condition
for this calculation with the 1995 Census. It should be notedthat this figure has no independent significance outside thescope of this survey.

Judging by the breakdown given in Fig. 1-10, themajority of this will take the form of waste asphalt concrete, waste concrete, and construction
sludge.
4.3 Relationship with Census Surveys
The foregoing offers a scenario whereby thestock accumulated throughout the era of rapid
growth is demolished over a short time, and construction waste increases dramatically as a result.
In the following, various discussions will be pursued on this basis. But before doing so, the relationship between this scenario and the Census
Surveys should be defined.
Three Census Surveys have been conductedso far. As can be seen from the diagrams above,
the results of the FY1990 and FY1995 surveys
do not look out of place when superimposed on
the rapid increase scenario. However, the resultof the third survey in FY2000 shows a level thatis significantly at variance with the scenario.
Specifically, the output of construction wastes(excluding waste construction soil) in FY2000
was 85 million tons, showing a decline of around
15% compared to the 99 million tons in FY1995.
This runs counter to the trend of the increasing
scenario. How should we interpret this discrepancy?

Development Bank of Japan Research Report/ No. 28

9

200
公共土木
Private works

民間土木
Public works

センサス
Census180
160

Million tons

140
120
100
80
60
40
20

35

32

26

29

23

20

17

14

11

08

02

05

99

96

93

90

87

81

84

78

75

69

72

66

63

19
60

0

Fiscal Year

Fig. 1-9 Calculated Output of Construction Wastes from Civil Engineering Works
Source: DBJ calculations
200
Mixed
construction waste
建設混合廃棄物

180

Construction
建設汚泥 sludge
Waste
construction timber
建設発生木材

160

Waste
asphalt concrete
ASコンクリート塊
Waste
concrete
コンクリート塊

Million tons

140
120
100
80
60
40
20

35

32

29

26

23

20

17

14

11

08

05

02

99

96

93

90

87

84

81

78

75

72

69

66

63

1960

0
Fiscal Year

Fig. 1-10 Calculated Output of Construction Wastes from Civil Engineering Works(by type of waste)
Source: DBJ calculations

The cause of the reduced output is thought,
among others, to be that re-use on site has progressed (or, in other words, that the output baseunit has decreased). In the Census Surveys, however, it is mainly attributed to a decline in construction starts and public works. The Census
Surveys emphasize factors whereby the demolition of stock is affected by the level of new con10

Development Bank of Japan Research Report/ No. 28

struction investment (i.e. demolition is implemented because of new construction works), andestimate the whole output for single fiscal years
based on new construction investment. If we
adopt this approach, the volume of demolition
will also decrease, reflecting the fall in immediate construction investments. By contrast, therapid increase scenario mentioned above takes anapproach that focusses on developments over a
period of time, namely how the total volume of
construction stock will be discharged in future as
wastes. Its rationale is that the demolition ofbuildings and structures occurs at a fixed rate ofprobability with the lapse of time, regardless ofwhether or not is accompanied by new construction. Therefore, the impact of immediate increases or decreases in construction investment issmall. The Census Surveys could be seen as following a technique suited to surveys of output insingle fiscal years, while the output rapid increase scenario adopts an approach that is suited
to examining the long-term development of construction wastes. It should therefore be borne inmind that the two methods basically differ innature.
Here, for reference, let us incorporate the gistof the Census Surveys in the rapid increase scenario. Fig. 1-11 compares the construction start
floor space and civil engineering turnover used in
the above calculation with the demolition
parameters for each, deduced from the demoli-tion probability rate. In either case, while new
construction works gradually turned to a decrease from the middle of the 1990’s, the demolition parameters continued to increase, showing
a lack of uniformity in the behaviour of the two.
If we consider demolition as accompanying new
construction works, the demolition parameters
would also have to decrease from the mid-1990’s
onwards. So, next, we will change the demolition
parameters by the rate of increase or decrease in
new works (without altering the other conditions).
Figs. 1-12 and 1-13 show what happens when
this is applied to buildings and civil engineering
works, respectively. Since the demolition parameters will also be calculated using the rate ofchange in new works from fiscal 2000 onwards,
the output of construction waste should remain
virtually unchanged, given that new works areunlikely to increase greatly under present circumstances. While this “no change scenario”
would increase in conformity with the fiscal
2000 Census Survey, factors of temporal variation in the accumulation of stock (such as in theConstruction start floor space against demolition parameters(Timber)(Non-timber)

120

250

100

200

80
2

40

Million m

Timber starts
Timber demolition
Demolition correction

20
0

100
Non-timber starts
Non-timber demolition
Demolition correction

50

97
20
00

Fiscal Year

94

91

88

85

82

79

76

73

70

67

61

97
20
00

91
94

85
88

79
82

73
76

67
70

61
64

0
64

Million m2

150
60

Fiscal Year

Civil engineering works turnover against demolition parameters(Public works)
3,000(Private works)
1,000
900
800
700
600
500
400
300
200
100
0

Public works (turnover)Public works demolition
Demolition correction

Private works (turnover)
Private works demolition
Demolition correction

Fiscal Year

99

96

93

90

87

84

81

78

75

99

96

93

90

87

84

81

78

75

72

69

66

63

60

0

72

500

69

1,000

66

1,500

63

10 billion

2,000

60

10 billion yenyen

2,500

Fiscal Year

Fig. 1-11 Construction Start Floor Space / Civil Engineering Works Turnover Against
Demolition Parameters

Development Bank of Japan Research Report/ No. 28

11era of rapid growth) are hardly reflected at all.
The no change scenario could be seen as describing developments in which, unless accompanied by new construction, buildings and structures are not demolished but are left as they areeven after reaching the end of their service life.
As stated above, this survey aims to exam-

ine the impact associated with the demolition ofbuildings and structures that have been accumulated to date, taking temporal variations into account, and to pursue debate on the long-term
development of this impact. The following discussion will thus be based on the rapid increase
scenario.

50
45

Timber, total
木造計

Non-timber, total
非木造計

New construction,
新築・改築
renovation

Census Surveys
センサス推計40
35

Million tons

30
25
20
15
10
5

34

32

30

28

26

24

22

20

18

16

14

12

10

08

06

04

02

98

2000

96

94

92

90

88

86

84

82

80

78

76

74

72

70

0

Fig. 1-12 Output of Wastes from Buildings Based on A “No Change Scenario”
Source: Calculated by the DBJ from Construction Statistics Annual Reports, Outline Records of Fixed Asset
Prices, etc., Surveys on Construction Wastes, the Medium to Long-Term Forecast for the Construction Market, etc.
70
Private works

Public works

Census Surveys

60

Million tons

50

40

30

20

10

34

32

28
30

26

22
24

20

16
18

14

10
12

08

06

9
20 8
00
02
04

94
96

92

88
90

86

82
84

80

76
78

74

70
72

68

64
66

62

19

60

0

Fiscal Year

Fig. 1-13 Calculated Output of Construction Waste from
Civil Engineering Based on the “No Change Scenario”
Source: DBJ calculations

12

Development Bank of Japan Research Report/ No. 28

5.

Calculation of the Output ofConstruction Wastes

5.1 Trends in the Output ofConstruction Wastes
Figure 1-14 shows overall trends in the output ofconstruction waste (excluding waste constructionsoil), after aggregating the output from buildings
and civil engineering obtained in the rapid increase scenario calculations above. The output ofconstruction waste in Japan, mainly involving
public works and non-timber buildings, is expected to increase dramatically in the long term,rising nearly 2-fold from the fiscal 2000 level tojust over 300 million tons in fiscal 2010 andnearly 3-fold to more than 400 million tons infiscal 2030. Fig. 1-15 shows the relative contribution to the rate of change by different outsourcing sectors. A high increase rate of 7.5%
per annum is forecast overall between fiscal
2000 and 2010, and since buildings from the1970’s will reach the renewal phase in that period, the contribution of demolished non-timberbuildings will be very large. Fig. 1-16 breaks thisdown into waste concrete, waste asphalt concrete,timber, and other materials. If we extrapolate thecomposition per material at the fiscal 2010 stage,
waste concrete will account for the majority, as
seen in Fig. 1-17. Together with waste asphalt
concrete and waste construction timber, moreover, it will account for 80% of the total. Fig. 1-18
shows the relative contribution of each material
to the rate of change in the output of constructionwastes. The contribution of waste concrete islarge over the next ten years, reflecting the increased demolition of non-timber buildings.4
4
It should be borne in mind that this calculation takes noaccount of vegetation uprooting in the course of construction or civil engineering works. When shrubs are cleared inland reclamation and other works, large quantities of roots
need to be processed. In the timber industry, too, large
amounts of branches and leaves also have to be removed
before the wood can be shipped as timber. One source estimates this at more than 100 million tons every year. However, many of these materials have conventionally been
incinerated and are completely unknown quantities. In legal
interpretations, too, uprooted timber arising from construction works in forest and woodland areas is not regarded aswaste, and since no official quantification has been made it
has been excluded from these calculations.

5.2 Problems with Waste Construction Soil
Another problem that we cannot ignore when
considering the issue of construction waste isthat of soil excavated during construction works(waste soil). According to the Census Survey offiscal 2000, the output of this was around 280
million cubic metres (about 500 million tons).
Although this was far less than the 446 million
cubic metres (around 860 million tons) recordedin the fiscal 1995 Survey, the volume still far
outstrips the total of all other construction wastes.
Until now, however, this has not received attention as a problem related to construction “waste”,
since it is distributed as a commodity, mainly forinland use when elevating farmland or housing
land, filling valleys, and so on (Fig. 1-19).
Nevertheless, in view of future output trends
and the impact of the problem of soil pollution(which, as mentioned above, is also giving rise tomuch social concern and is subject to ongoingdebate on the introduction of legislation), it isanticipated that waste construction soil will also
become a major point of debate in connection
with processing construction waste in the near
future.
Figure 1-20 shows calculations of the output
of waste construction soil from civil engineering,5 which accounts for the majority of its transportation volume, based on data used until now.
Waste construction soil brings up another problem in the relationship with the Census Surveys.
Along with the slowdown in the flow of new
construction works, we cannot ignore the impact
of increased recycling of waste construction soil
for other uses among construction sites, due toadvances in information technology, on the vast
reduction in output indicated by the Census Survey mentioned above. In other words, it is possible that the output base unit has changed
structurally with the increase in re-use on site,rather than merely being due to temporary factors. Therefore, in this survey we use a new outp u t b a s e u n i t f or f i s c a l 2 0 0 0 o n w a r d s . 6
5
According to the fiscal 1995 Census Survey, 90% of thetotal transported volume originated from civil engineering
works.
6
We have calculated demolition parameters for civilengineering works in fiscal 2000 and an output base unit

Development Bank of Japan Research Report/ No. 28

13For reference, the dotted line in the diagramshows what would happen if the old base unit
were still used after fiscal 2000 without incorporating these changes. This takes account of thepossibility that on-site re-use could be hindered
due to the progress of soil pollution countermeasures (to be discussed later), in which case theoutput base unit would once again increase.
According to this calculation, the output of
waste construction soil will grow to 1.6 times the

fiscal 2000 level in fiscal 2010, and around double that level in fiscal 2030, increasing massively
in future in the same way as the other waste.
As we have seen so far, there is concern inJapan, now approaching the renewal phase ofstock on a vast scale, that the output of construction waste in future could expand at a very
dramatic rate. Therefore, based on this situationand future prospects, what policies are being
developed, and what are the business trends?

450
400
350

New construction
Demolished non-timber
Demolished timber
Private works
Public works
Census surveys

Million tons

300
250
200
150
100
50

19

60
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
94
96
9
20 8
00
02
04
06
08
10
12
14
16
18
20
22
24
26
28
30
32
34

0

Fiscal Year

Fig. 1-14 Calculated Output of Construction Wastes(excluding waste construction soil)
Source: DBJ calculations
20
New construction
Demolished non-timber
Demolished timber
Private works
Public works
Rate of change

15

10

5
%

0

-5

-10

-15
61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 27 29 31 33 35
Fiscal Year

Fig. 1-15 Contribution per Outsourcing Sector to the Output of Construction Wastes
Source: DBJ calculations
14

Development Bank of Japan Research Report/ No. 28

450
400

OthersWaste construction timber

350

Waste asphalt concrete
Waste concrete

250
200
150
100
50

34

28
30
32

22
24
26

16
18
20

10
12
14

04
06
08

94
96
9
20 8
00
02

88
90
92

82
84
86

76
78
80

70
72
74

64
66
68

0

19
60
62

Million tons

300

Fiscal Year

Fig. 1-16 Calculated Output of Construction Waste, per type
Note: Buildings (new construction) are included in “Others”.
Source: DBJ calculations
Others19.0%

Waste construction
timber
3.2%
Waste concrete
52.4%

Waste asphalt
concrete25.4%

Fig. 1-17 Composition of the Output of Construction Wastes, per type (2010)
Source: DBJ calculations
25.0
OthersWaste construction timber
Waste asphalt concrete
Waste concrete
Rate of change

20.0

15.0

10.0

5.0
%
0.0

-5.0

-10.0

-15.0
61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 27 29 31 33 35
Fiscal Year

Fig. 1-18 Contribution to the Output of Construction Wastes, per type
Source: DBJ calculations
Development Bank of Japan Research Report/ No. 28

15Transported volume
Construction
10%

Destinations
Inland public-sector
construction
13%
Sea
reclamationwork
6%

Private works
4%

National total
3

446 million m

Public works 86%

Plants 1%

National total
3

446 million m

Inland acceptance sites, etc.
80%

Fig. 1-19 Transported Volume of Waste Construction Soil and Composition of Destinations(FY1995)
Source: Survey on Construction Wastes
1,400
Private
民間

1,200

Public
公共
If no change in base unit
原単位不変の場合

Million m3

1,000

センサス
Census

800

600

400

200

1960
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
2000
02
04
06
08
10
12
14
16
18
20
22
24
26
28
30
32
34

0

Fig. 1-20 Calculated Output of Waste Construction Soil from Civil Engineering Works
Source: DBJ calculations

16

Development Bank of Japan Research Report/ No. 28

Concern over the dramatic increase in the output
of construction waste is spurring a response interms of government policy. The development of
this policy, in turn, will have a big impact on
trends in industries that process constructionwastes. A similar development has been noted in
the past, when the sector known familiarly as the“environmental industry” expanded in scale byworking in parallel with the development of direct regulation and other environmental policies.
In this section, we will examine the response
from the policy angle in connection with construction wastes, as well as trends in construction
recycling industries based on this.

such as the amendment to the Waste Disposal
Law. Therefore, reducing the disposal volume
arising from construction, which accounts for alarge part of the capacity, has been targetted as amajor task7.
Meanwhile, construction waste has also
become a huge problem in terms of illegal
dumping. As shown in Figs. 2-4 and 2-5, construction waste accounts for 72% of cases and
44% of the weight of illegal dumping. This issaid to be due to so-called “mince demolition”,
now prevalent in the industry due to the lack of amonitoring system on the demolition of buildings.
Cases of illegal dumping are actually in an increasing trend (Fig. 2-6). Construction waste has,
therefore, also become a major point of focus
from the point of view of reducing the environmental burden accompanying inappropriate
processing.

1. Present State of Construction Waste andthe Construction Materials Recycling Act

1.2 Introduction of the Construction
Materials Recycling Act

1.1 Present State of Construction Waste

To cope with this anticipated expansion in output
as well as improving this present state of construction waste, the Construction Materials Recycling Act introduced in May 2000. The Act
sets out to establish a new framework for processing construction waste by imposing obligations to sort and recycle “specific construction
materials” on construction works exceeding acertain scale. An outline of the Act is shown in
Table 2-1 At the same time, a registration system
was introduced for demolition contractors, including a requirement that technical supervisors
be assigned to demolition sites, in an attempt to

II Recycling Industries and the
Impact of the Construction Materials Recycling Act

As a premise for considering the policy responseon construction wastes, we should first sum up
the state of processing until now. The output ofindustrial waste in Japan has been at the level of
400 million tons per year in recent times. The
weight of the construction industry within this, as
shown in Fig. 2-1, is around 20%, exceeded only
by agriculture and the electricity, gas, heating,
and water supply industries. Fig. 2-2 shows thestate of processing of this waste according to theresults of the aforementioned Census Surveys.
Comparing construction waste to all industrial
waste, the re-use rate is higher, but there is little
reduction in volume and the weight of final disposal is consequently much higher. The relatively high re-use rate is due to the fact thatwaste concrete and waste asphalt concrete (Fig.
2-3), which account for a high proportion of output, have been re-used efficiently so far. The
high rate of final disposal, conversely, could beseen as showing that the re-use of other waste,such as sludge, has hardly advanced at all. In
Japan, the capacity of final disposal sites (landfill
sites) has always been tight. But the situation has
been aggravated by the tightening of regulations,7

The 1997 amendment to the Waste Disposal Law, alongwith the consequent amendment of orders on technicalstandards, has tightened the structural and maintenancestandards applicable to landfill sites. As a result, the numberof newly created sites, registering more than 100 every year
up to fiscal 1998, fell sharply to only 26 in fiscal 1999. The
conventional modus operandi, whereby the reduction incapacity of existing sites is compensated by newly createdones, is therefore becoming increasingly difficult to maintain. As for construction waste, meanwhile, the discovery ofarsenic elution from plaster boards, which had until thenbeen disposed in least controlled type landfill sites, waschanged to controlled type disposal from 1999. This presents another factor that places pressure on landfill site
capacity.

Development Bank of Japan Research Report/ No. 28

17raise the level of demolition works.
Beverages,
tobacco, fodder
1%

Foods
3%

Others7%Construction
19%

Ceramics,
quarrying3%
Chemicals
4%
Mining5%Agriculture
24%Paper pulp
6%
Steel
7%

Electricity, gas, heating, water supply
21%

Fig. 2-1 Output of Industrial Waste, by sector (FY1998)
Source: Ministry of the Environment, “Survey on the Output of Industrial Waste and the State ofProcessing” (1998)

industrial waste
All industrial All
waste(Survey by the M inistry of Health & Welfare)

37

18

45
1

All construction
All constructionwaste waste(Survey by the M inistry of Construction)

57

Construction sludge

68

M ixed construction waste

6

5

42

86

89
2

Waste construction timber

37

Waste concrete

61

65

35
0

Waste asphalt concrete

81
0%

10%

20%

Recovery30%

40%

Reduction

19
50%

60%

70%

80%

90%

DisposalFig. 2-2 Comparison of Recovery Rates, etc.
Source: Council for PR and Promotion of Construction Waste Recycling, “Comprehensive Measures for Construction
Wastes” (FY1999 edition)

18

Development Bank of Japan Research Report/ No. 28

100%Wasteconstruction
timber6%(6 million)

Mixed
construction
waste
10%
(10 million)

Others1%(1 million)
Waste asphalt
concrete37%(36 million)
National
total
99 million
tons

Construction
sludge10%(10 million)

Waste concrete
36%(36 million)

Fig. 2-3 Composition of Construction Waste Output, by type (1995)
Source: FY1995 Survey on Construction Wastes

Cinders2%

Sludge2%

Animalmanure2%

Others5%

Rubber scrap
3%
Metal scrap
6%
Rubble52%

Waste plastic
7%
Otherconstructionwaste
6%
Wood scrap
15%

Construction waste 617 cases 72%

Fig. 2-4 Composition of Illegally Dumped Industrial Waste (cases, FY1997)
Source: Ministry of the Environment

Development Bank of Japan Research Report/ No. 28

19Others
7%
Rubble27%

Sludge22%

Cinders2%

Wood scrap
13%

Rubber scrap
4%
Metal scrap
4%

Other
construction
waste
4%
Waste plastic
17%

Construction waste 408,000t 44 ％Fig. 2-5 Composition of Illegally Dumped Industrial Waste (weight, FY1997)

50
45
40
35
30
25
20
15
10
5
0

44

41

38

44
1,273

34

1,400
1,200
1,000

22
679

800

855

600

719

Cases

10,000Source: Ministry of the Environment

400
274

353

200
0

1993

94

95

96

97

98

Fiscal Year

Dumped volume (left-hand scale)
Dumping cases (right-hand scale)Fig. 2-6 Trends in Cases and Volume of Illegally Dumped Industrial Waste
Source: Ministry of the Environment

20

Development Bank of Japan Research Report/ No. 28

Table 2-1 An outline of the Construction Materials Recycling Act
Name

Law for the Recycling of Construction Materials (Law No. 104 of May 31st, 2000)

Enforcement

Basic principles (roles of parties concerned, recycling targets, etc.): Took effect on Nov. 30th, 2000
Registration system for demolition contractors: Took effect on May 30th, 2001
Obligation to sort and recycle, etc.: To take effect from May 2002

PurposeTo promote sorted dismantling and recycling of specific construction materials, and to secure resources andensure appropriate processing of waste by making full use of recycled resources, reducing waste, etc.

Specific construction
materials

The following when exceeding a certain scale:(1) Concrete (including secondary products derived from concrete and steel)(2) Asphalt concrete(3) Timber

Targeted works· Demolition of buildings and others that use specific construction materials· New construction works using specific construction materials
à Demolition 80m2 or more / New construction 500m2 or more / Civil engineering works 5 million yen or
more (to be decided officially in government ordinances by June 2002)

Recycling targets

Recycling rate in FY2010 = 95% (recycled weight / output weight)· Obligation to sort dismantled materials, etc.
· Obligation to recycle, etc. (for timber, reduction allowed under certain conditions)· Obligation for prior notification (to prefectural governor) of works by works orderers, post-completion reports
from contractors to works orderers, etc.
· Clear indication of demolition costs in contractual documents

Key points· Registration system for demolition contractors (from June 2001) and obligation to assign technical supervisors to demolition sites, etc.

Source: Collated from various materials

Specific construction materials are those which,(1) on conversion to waste, should be recycled toensure effective utilization of resources and reduction of waste, and (2) are not subject to significant financial constraints when recycling, as
stipulated by government ordinances (Article 2
Paragraph 5 of the Act). So far, four materials
have been designated, namely (i) concrete, (ii)construction materials made from concrete andsteel, (iii) timber, and (iv) asphalt concrete.8
Contractors and others accepting orders forwork above a certain scale, when coming under
the provisions of the Act, are obliged to sort
specific construction materials on site via sorted
dismantling and other means (Article 9 Paragraph 1 of the Act), and to recycle said materials(Article 16 Paragraph 1 of the Act). “Contractors
and others” here is a broad concept including
everyone involved in the construction work as
8Ordinance No. 495 of 2000. Generally, (ii) construction
materials made from concrete and steel are regarded as
secondary concrete products and, as such, are included
under concrete, bringing the number of designated materials
down to three. Therefore, in this survey, the targets of the
Act will be treated as the three materials of waste concrete,
waste asphalt concrete, and waste construction timber.

subcontractors, as well as the principal contractor.
“Recycling”, meanwhile, is a concept that includes both material and thermal recycling.
However, “designated construction waste” asstipulated in government ordinances may simply
be “reduced” (incinerated, etc.) as appropriate
when subject to certain conditions, such as theexistence of significant financial constraints
when recycling.9
The characteristics of the Construction Materials Recycling Act may be summarized into
the following three points.
The first is that it provides for role-sharing
between a wide range of related parties, reflecting the wide range of parties involved in construction works. Fig. 2-7 shows the flow whensorting and recycling dismantled materials. For
the contractors who play central roles in construction works, the Act imposes an obligation
for notification, etc., between principal contractors and subcontractors. Works orderers are also
obliged to submit plans for sorted dismantling,etc., to the prefectural governor, and to specify
the method of sorted dismantling, and the costs
9This applies to timber.

Development Bank of Japan Research Report/ No. 28

21Works orderer(draw up plans for sorted dismantling,etc.)

Prior notification

Prefectural
governor

Amendment order

Submission of reportin line with the Waste
Disposal Law

Advice or recommendations, order
Notification

Contract

Written report

Contractors
Principal contractor(documents on matters for
notification in theconstruction works)

・ Implementation of sorted
dismantling, recycling, etc.

Principal contractor(confirm completionof recycling, etc.)

・ Supervision of work by technicalsupervisor

Subcontractors
・ Placing of markers on the site

Fig. 2-7 Flow of Construction Material Recycling
Source: Ministry of Land, Infrastructure and Transport

involved, in the construction work contract. In
ways such as this, the Act has devised a framework whereby all parties involved are aware of
the method of sorted dismantling, etc., and thecosts involved in it.
Secondly, a point related to the foregoing isthat the role played by prefectural governors inthis whole process is very large. Prefectural governors determine the directions for application of
the Act by formulating guidelines and supplementary by-laws, but also monitor various notifications concerning sorted dismantling, recycling,etc., and give guidance whenever necessary. Insuch respects they are expected to play a more
prominent role than in other environment-related
legislation. Regional characteristics have a significant influence on construction waste (forexample, the volume generated, the existence ofprocessing infrastructure, the remaining capacityof landfill sites, the ease or difficulty of procuring natural materials that compete with recycledmaterials, and so on). This factor could be seen
as contributing to this point.
The third point is that the Act represents asystem design that leaves room for future amplification based on reality. In terms of making
22

Development Bank of Japan Research Report/ No. 28

effective use of resources, the option of adopting
a wider range of materials for recycling, etc.,
could also exist.10 But taking the viewpoint ofdeveloping a recycling system that can guarantee
economy and then amplifying it, the rational
choice would appear to be to focus on waste
concrete and waste asphalt concrete, for which
recycling is already relatively advanced. Even interms of correcting the present situation, positiveeffects can be expected from the inclusion oftimber (for which recycling is slow to develop,
while incineration is becoming more difficult due
to tighter regulations on dioxin, etc.), as well asfrom the built-in system of monitoring demolition businesses (the registration system), leading
to countermeasures against illegal dumping. In
future, when proper processing infrastructure isin place and the flow of materials into it is guaranteed, it will be easy to expand into construction materials that are difficult to process properly at present, such as used plastic and plaster10

In fact, the Tokyo Metropolitan Government is reportedly considering independently adding plastic (PVC pipes
and joints), plaster boards, and others to the materials subject to recycling in fiscal 2002, in addition to the three materials designated by the Act.

boards. This direction, indeed, has already beenhighlighted in the “Basic Principles of the Construction Materials Recycling Act” drawn up by
six relevant ministries and agencies at the end of
2000.
2. Recycling Industries and the Impact of
the Construction Materials Recycling Act
2.1 The Construction Waste Recycling Market (intake theory)
Next, let us consider what impact the introduction of this Construction Materials Recycling Act
will have on the recycling industries that deal
with construction wastes. First, the impact of the
Act will be examined based on the scenario of adramatic increase in output, as discussed above.
Following the enforcement of the Act, the recy-cling rates of the three materials designated as“specific construction materials” (waste concrete,
waste asphalt concrete, and waste construction
timber) will be increased to 95% by fiscal 2010.
The additional processing demand arising fromthis in future may be regarded as the difference
between the levels sought by the Act and thelevels if processing were continued at present
rates, as shown in Table 2-2. The results of thiscalculation are shown in Fig. 2-8. According tothese results, the future increase in output, added
to the improvement in recycling rates as soughtby the Act, would bring the additional volume
requiring processing to around 120 million tons
in 2010, continuing to increase gradually thereafter. Waste concrete, whose output is set to increase dramatically, would account for the larger
part of the weight composition (Fig. 2-9).

Table 2-2 Calculation Conditions
Current processing
basis

Recycling
progress line
(FY2010)

Waste concrete

50 million tons/year

95% of output

Mostly used as basecourse material. To be expanded for re-use in construction materials

Waste asphalt concrete

85% of output

95% of output

Usage to remain as at present

Waste construction timber

40% of output

95% of output

Present state à use of reduced materials, improvement through advance of material recycling

OthersConstruction
sludge14% of output

14% of output

No improvement foreseen in this calculation

Metal scrap

100% of output

100% of output

No improvement foreseen in this calculation

Others11% of output

11% of output

No improvement foreseen in this calculation

Material

Remarks* Since recycling includes intermediate treatment, the remainder is the finally disposed volume.
* Assuming the progress line is reached at an average rate from the base line (FY2001).

Development Bank of Japan Research Report/ No. 28

23

450

450
Final
disposal volume
最終処分量
Recycled
volume (recycling advance basis)
再資源化量（リサイクル進展ベース）
再資源化量（既存処理ベース）
Recycled
volume (present processing basis)

400

350

350

300

300

250

250

200

200

150

150

100

100

50

50

0

0
95
96
97
98
99
2000
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

Million tons

400

Fiscal Year

Fig. 2-8 Calculated Additional Processing Volume with the Advance of Recycling
Source: DBJ calculations

Waste construction timber
コンクリート塊

Waste asphalt concrete
ASコンクリート塊

05
06

13
14

200
Waste concrete
建設発生木材

180
160
140

Million tons

120
100
80
60
40
20

35

34

33

31
32

29
30

27
28

26

25

23
24

21
22

19
20

18

17

15
16

11
12

10

09

07
08

03
04

2002

0
Fiscal Year

Fig. 2-9 Trends in Additional Processing Volume per Material
Note:

The graph shows the difference between a scenario in which recycling rates for waste concrete, waste asphalt
concrete, and waste construction timber are improved in line with the Construction Materials Recycling Act,and one in which present processing levels are maintained. Construction sludge, metal scrap, and others not targetted by the Act do not appear on the graph as they will remain unchanged.
Source: DBJ calculations

24

Development Bank of Japan Research Report/ No. 28

These materials would be processed in dedicated plants before being returned to construction
sites and elsewhere as recycled resources. Fig. 210 shows the market scale of the construction
recycling industry including this additional volume, assuming that recycling costs (acceptancebasis) remain unchanged from present levels. It
should be noted that “recycling costs (acceptancebasis)” here, as shown in Fig. 2-11, are only theacceptance costs at the intermediate processing
stage and do not include transportation costs. The
latter have been omitted because they vary
greatly, depending on the location of the works
site. According to this estimate, the market scaleof the construction recycling industry would
reach around 800-900 billion yen per year overall, with around 400-500 billion yen of new recycling requirements added to the existing scaleof around 300 billion yen per year.
It should be remembered, however, that thiskind of calculation invariably entails a number oflimitations. In this particular case, the first limitation is the handling of waste construction tim-ber. Even with the enforcement of the Construction Materials Recycling Act, there is a considerable volume of waste timber that cannot realistically be recycled due to financial constraints, andreduction is the most that can be expected. This
point has not been incorporated in our calculations, since future developments concerning incinerators are unclear. Following a tightening of
regulations, such as amendments to the structuraland maintenance standards of industrial waste
incinerating facilities, many existing facilities
were expected to be decommissioned as they
could not meet the massive structural improvement costs needed to clear the new standards.
But in fact, many operators are reportedly continuing in business because, among other reasons,repeat licenses are very difficult to obtain once
an incinerator has been decommissioned. This
makes it difficult, at the present time, to judge
future developments of receptors for waste timber from demolition.

12,000Waste construction timber
Waste asphalt concrete
10,000Waste concrete
Total of present volumes

6,000

4,000

2,000

33
34
35

31
32

28
29
30

25
26
27

22
23
24

20
21

18
19

15
16
17

12
13
14

09
10
11

07
08

04
05
06

0

20
02
03

100 million yen

8,000

Fiscal Year

Fig. 2-10 Calculated Market Scale of Construction Recycling
Source: DBJ calculations

Development Bank of Japan Research Report/ No. 28

25

Generation

Material recycling

Waste asphalt concrete

Waste construction timber

Transportation

Waste concrete

Product recycling

Acceptance,
recycling

Recycled aggregate, soil
improvement material, etc.

Acceptance,
recycling

Recycled asphalt composite,
etc.

Chipping

Particle boards, etc.
Fuel

Costs calculated for this stage
Assumed acceptance costs:

Concrete mass
Asphalt concrete mass
Wood scrap

3,000 yen/t
2,500 yen/t
10,000 yen/t

Fig. 2-11 Conditions for Monetary Conversion

The second limitation is that the discussion
so far has assumed that output base units willremain constant. Of course, the base units inthemselves will tend to fluctuate with time.
Therefore, if sorting on site progresses in linewith the gist of the Act, the potential for use onsite would increase in future and the ratio of thetransported volume to the generated volume
would very likely fall. But since there are noproper data for this, it has not been incorporated
in our calculations. As an exercise, Fig. 2-12
shows what would happen if the output volume
decreased in stages due to re-use on site (theoutput base unit decreasing by 10% every 5 years
from FY2002 onwards, remaining level there-

after). But even then, the market scale would besignificantly effected on the intake side.
The third limitation is the problem of processing costs. Here, we are assuming a level close
to present costs for intermediate processing. The
possibility exists, however, that these could begreatly affected by future price trends, such asincreased output or technical innovations.
Thus, it should be noted that, even if it ismistaken to assume that the market scale of therecycling market (the volumes that ought to behandled) in terms of intake theory will expand in
future, the debate will vary greatly with evensmall fluctuations in a large number of preconditions.11

11

In particular, it is possible that the scenario of a rapid
increase in output could be corrected if longer service life
could be achieved through future improvements in maintenance or repair technology. This point will be handled in 3
below.

26

Development Bank of Japan Research Report/ No. 28

450
400
350
300

Million tons

250
200
150
100
If output ratio falls

50

If output ratio stays the same

20
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35

0
Fiscal Year

Fig. 2-12 Impact if the Output Ratio Falls
Source: Compiled by DBJ

2.2 Problems of Receptors for Recycled
Resources (outlet theory)
When considering the impact on the recycling
industry, a bigger problem is that of the receptors(outlets) for recycled resources. Recycling businesses take two forms, namely (1) accepting
generated waste for processing (service industry)and (2) processing the accepted materials andmarketing them as raw materials, etc. (processing
industry). To put it simply, if the costs associatedwith (1) and (2) could be absorbed by revenue
from processing (1) and manufacture and sale (2),the business would be operable. In reality, however, this is not so easy to achieve. In many cases,
the reason for this can be found in the weight ofthe cost burden and the fact that revenue in theprocessing industry is small and unstable. Therefore, when discussing recycling businesses, weneed to consider the aspects of marketability ofrecycled resources and cost, as well as the market scale discussed above (revenue for the processing industry).
Firstly, in terms of the marketability of recycled resources, the majority of materials inmaterial recycling undergo “cascade recycling”,12in which the usage goes down to a lower level.
Receptors for these are in a state of oversupply,
and they are low in marketability. In thermal
recycling, similarly, when undertaken purely as a
private sector business, sale power is treated as
surplus power generated in-house, and the salepower price is at an extremely low level.
What form does this take in construction
recycling? As shown in Fig. 2-13, waste concrete
and waste asphalt concrete, whose recycling
rates have been relatively high until now, areused as crushed stone, the main destination being
basecourse, subgrade, and other materials for use
in roads. However, this use also has limited potential for absorbing the future expansion of output. As Fig. 2-14 shows, the demand for basecourse materials is around 200 million tons per
year. Fig. 2-15, meanwhile, reveals that the supply of aggregate mainly comes from the crushedstone industry at present. If the input of waste
12

Likening the flow of materials to a waterfall (“cascade”),
the uses of recycled materials gradually move down fromhigh- to low-grade levels through the recycling process.
This is a concept that complements those of “horizontal
recycling” and “upgrade recycling”.

Development Bank of Japan Research Report/ No. 28

27

concrete from demolition works is increased,
however, there will be a conflict of roles with thecrushed stone industry. As well as this, basecourse and subgrade are seen as promising destinations for other recycled resources (steelmaking
slag, cullet, etc.) and waste processing residue(molten slag, etc.), and competition among recycled resources is expected to become aggravatedin future. Expanding recycled material markets
could be seen as an urgent task.
Next, from the angle of costs, the very activity of recycling in itself gives rise to additionalcosts by adding a new flow (reverse flow) of“sorted dismantling à recycling” to the conventional flow of materials (construction à demolition à waste). In particular, when recycled materials have low added value, their ability to ab
sorb transportation costs is inevitably limited,and business feasibility is greatly affected by the
degree to which these costs can be minimized(e.g. selection of plant location). Moreover, thecost of final disposal of residues left after recycling are bound to go up now that landfill space
is becoming harder to obtain, and this is a factor
that pushes up the overall cost.
These problems of cost are thought to beparticularly manifest in the case of constructionwastes, which have a high output and weight.
Overall, then, the recycling industry is subject to a number of constraints, particularly as itis such a highly installation-reliant industry.
Quite in contrast to its apparently semi-macro
market scale, it is characterized by an opaqueness of business feasibility. In order to clear these hurdles and guarantee feasibility, efforts areneeded at both policy and business level.

Fig. 2-13 Recycling Flow (FY1995)
Source: Housing and Ceramics Industry Construction Materials Department, Manufacturing Industries Bureau, Ministry of
Economy, Trade and Industry
28

Development Bank of Japan Research Report/ No. 28

1000
For concrete

900

Roads, road beds, etc.
800700Million tons

600
500
400
300
200
100

99

98

97

96

95

94

93

91

92

90

88

89

87

86

85

83

81

79

77

75

73

71

69

67

65

19
63

0

Fiscal Year

Fig. 2-14 Trends in Demand for Aggregate
Source: Housing and Ceramics Industry Construction Materials Department, Manufacturing Industries Bureau, Ministry of
Economy, Trade and Industry

600
Rivers500

Million tons

400

MountainsLand
Sea
Crushed stone
Others

300

200

100

98
99

96
97

95

93
94

91
92

90

88
89

86
87

83
85

81

77
79

73
75

71

67
69

19
63
65

0
Fiscal Year

Fig. 2-15 Trends in Aggregate Supply
Source: Housing and Ceramics Industry Construction Materials Department, Manufacturing Industries Bureau, Ministry of
Economy, Trade and Industry

Development Bank of Japan Research Report/ No. 28

29

2.3 Efforts Aimed at Forming Recycling
Industries
What sort of measures, then, have been devisedby the industry to address these issues?
In terms of expanding markets for recycledresources, various seeds of technology have beenpresented for the three materials targetted by theConstruction Materials Recycling Act (mainly
waste concrete and timber) at the present stage.
For other materials, meanwhile, the developmentof recycling technology is now in progress. Of
the three main materials, it is thought possible tomaintain the present recycling route (via roadrepairs, etc.) for waste asphalt concrete in future.
The focus, therefore, is now thought to be on theother two materials. Dedicated plants will beneeded to carry out the sophisticated recycling
process required to broaden the uses of theserecycled resources, and this will cause the burdenof costs for transportation and other aspects to
expand. The seeds that have been presented so
far not only concern the issue of recycling technology but also consider means of keeping thesecosts down. Table 2-3 lists a number of representative examples.
(1) Processing of waste concrete
In terms of expanding the marketability of waste
concrete processing, a point of note is that a system of technology aimed at diversifying andstratifying the uses of recycled concrete is now
being developed. The purpose in doing so is to
add more advanced material recycling such asarchitectural structures and foundations, depending on quality, to the conventional base ofusage as basecourse and subgrade materials.
The technology seeds for horizontal recycling of aggregate recovered from waste concrete
into architectural structures include the heating,rubbing and kneading method (Diagate technology) developed by Mitsubishi Materials, included in Table 2-3. Here, roughly crushed waste
concrete is heated to 300°C to weaken the cement paste. It is then ground inside a tube mill,allowing fine aggregate and coarse aggregate to
be separated and recovered. Waste concrete consisting of 20% concrete paste, 33% fine aggregate, and 47% coarse aggregate yields 25% fine
powder, 31% fine aggregate, and 44% coarse
30

Development Bank of Japan Research Report/ No. 28

aggregate, thus giving an aggregate recovery rateof 94%. This is an extremely high level compared to other processing technology that does
not involve heat treatment. The quality of therecovered aggregate is equal to that of natural
aggregate, and clears the standards required ofaggregate by JIS A5005 (namely an absolute dry
density of more than 2.50g/cm3 and water absorption of less than 3.0%). The quality of concrete manufactured using recycled aggregate isalso equal in strength to that using ordinary aggregate, and has, in fact, been proved superior indurability (dry shrinkage) because it has the fullrange of particle sizes. Because it is still at thedemonstration plant stage,13 the processing costs
are high compared to normal aggregate recovery
processing. Nevertheless, if recovered fine powder can be launched on the market for ground
improvement materials, etc., taking advantage ofreduced manpower due to the adoption of a centralized control system and the fact the processing costs could be vastly reduced by upgrading inscale to an actual operating plant. If this technology enters the practical stage, in spite of limitations on volume owing to problems of quality, it
would become possible to secure a horizontal
material recycling route for some waste concrete
to be used in architectural structures.
Assuming this use in architectural structures
to be the maximum level, if multi-stage uses
could be established below this in the form of
middle-level material recycling for foundation
works, retaining walls, and others not requiring
so much strength as architectural structures, andcascade recycling of basecourse materials, refilling materials, and others, sufficient marketability could conceivably be secured for therecycled materials obtained in this way, even if
the volume of generated waste concrete increased. In this case, of course, it would be important to control the quality in keeping withthese multi-stage uses. This point will be discussed further below.

13

A mobile installation type with a capacity of 5t/h. Demonstrations have been underway for two years since fiscal
1998 as a NEDO demonstration plant.

Table 2-3 Examples of Seeds of Technology and Systems for Construction Recycling
Targetted material

Name or descripMain impletion
menting body
Mitsubishi
Recycling for
Materials
architectural
structures

Concrete resource Shimizu Corp.
circulation system

Targetted by Construction Materials Recycling Act

Waste concrete

On-site recycling
and use
Reverse concrete

Kashima Corp.

Self-propelled
recycling machinery

Komatsu Ltd.

Recycling forconstruction
materials

Sumitomo Forestry Co., Ltd.
Sekisui House

Okumura Corp.

Takenaka Corp.

Waste construction
timberUse for power
generation

NKK

Use as blast furnace reductant

Waste asphalt
concrete

Others Construction
sludgeConversion to
cement firing fuelHeated asphalt
road repairer

Taiheiyo Cement
Green Arm

Odessa Technos
recycling technology

Japan Resoil
Association

Mud concentration Toda Corp.
systemPlaster boards Plaster board
Severalrecycling system

OutlineHas established technology for recovering high-quality coarse
aggregate, fine aggregate, and fine powder by applying a heatedgrinding process to waste concrete.
Has developed technology for recycling fine powder to cementwith a low environmental burden.
Cyclical use of recycled resources obtained in Mitsubishi Materials
plants. Used in the construction of an acoustic test lab at the company’s Technology Research Centre, gathering data obtained fromhere and continuing technical improvements.
Uses aggregate processed on-site in actual buildings.
Has developed a system for manufacturing recycled concrete, fitted
on a 10-ton truck. Dismantled concrete is re-used on site. Mainly
for uses requiring relatively low durability.
Has strengthened its involvement in self-propelled recycling machinery (Galapagos Series), increasing reserves for development
investment.
Is developing information agency sites to reduce mismatches between supply and demand for recycled resources.
Has developing recycled timber with a high ligneous rate, used aswoodchips and other materials in housing.
Has developed technology for recycling wood scrap generated byhousing demolition into joist material.
Has constructed a system for sorting and recovering wood scrap
generated in the metropolitan region under a universal recovery
system, and recycling into particle boards under commission to
Tokyo Board Industries.
Has constructed a system for transporting wood scrap generated in
the Kinki region to Tokyo and recycling into boards, as above. In
joint operation with Nippon Express Co., Ltd., transportation between Tokyo and Osaka is undertaken using that company’s railway containers.
Has commercialized power generation boilers (circulating fluidized
bed type) that can use wood scrap as fuel (power generation efficiency more than 30%).
Has started demonstrations on the use of wood scrap as a reducing
agent in the Keihin Seisakusho plant (Oct. 2001). At the same time,is studying a system for recovering required volumes.
Following on from the Saitama plant, has started a study on largescale acceptance in the Tsukumi plant in Oita Prefecture (2001).
Is developing equipment that heats the road surface with a hightemperature heater, digs up the aggregate, and repaves on site to thesame standard as new materials. Using a patent with implementation rights bought from a Canadian company.
Construction sludge with high water content is granulated andhardened to a quality suitable for civil engineering materials in ashort time, by adding the company’s own cement-based hardenerand agitating. With an increase in member companies, the processing capability will expand to 1 million tons per year nationwide.
Construction sludge is concentrated to a specific gravity of 1.3 ormore and transported for fluidization processing soil.
A system for shredding plaster boards, separating paper from plaster components, and re-using the plaster powder as raw material forboards or ground improvement agents. Though mainly using wastefrom new construction at present, a future issue is whether expansion to demolition waste is possible.

Source: Various media, interviews

Development Bank of Japan Research Report/ No. 28

31

In terms of reducing processing costs, technology for mobile equipment is now evolving.
This would promote recycling on site at the sametime as reducing output by processing on site. In
the Diagate plant mentioned above, for example,
the demonstration equipment is transportable.
Attention is on the efforts of construction machinery manufacturers with respect to this field.
Whether waste concrete is processed on siteor transported to a plant depends on the volume(scale) of demolition works, the duration of theworks, the distance to the processing plant, thecapability of the processing operator, and othercircumstances unique to each individual case.
Another important factor is the state of the empty
land lot after demolition. When concrete buildings are demolished, the dismantling of foundations creates large holes that cannot be re-filled
sufficiently with the available soil. As statedabove, this would represent the first receptor ofwaste concrete, used for this purpose after being
crushed to a particle size that conforms to criteria
set by the Ministry of Land, Infrastructure andTransport (RC30 or less). In other words, thisportion would not be included in the output volume. However, the generated waste concrete
cannot always be completely processed in thisway, particularly in the case of high-rise buildings, from which large quantities of waste concrete have to be removed from the site. As
methods of processing after output, three formats
are generally considered: (1) entrust intermediate
processing to a nearby plant, (2) transport thewaste concrete to another works site that needs it(crushed either on site or at the destination), and(3) process it on site and sell it as merchandise(such as RC40 recycled basecourse materials).
While each of these has its pros and cons, if weconcentrate on the largest cost factor, i.e. thetransportation cost, and the issue of reducing theaccompanying social costs, on-site processing
could be seen as a persuasive option.14
The construction machinery industry is currently reinforcing new technical innovations and
14

Since in this case the demolition operators would themselves take care of intermediate processing, they would also
bear responsibility for noise pollution measures, vibration
control measures, and other considerations towards thesurrounding locality. It would therefore be important toachieve a balance with this.

32

Development Bank of Japan Research Report/ No. 28

seeds in areas such as mobile crushers, with aneye on a future expansion of recycling markets.15
Their future moves are the subject of much attention.
(2) Processing of waste construction timber
From the perspective of quality, waste construction timber is often inherently difficult to recycle
because it has been treated with preservatives,
insecticides, and so on. Therefore, as noted
above, much of it is incinerated, and future
trends are unclear. Nevertheless, various technological seeds have been presented with a viewto expanding its marketability. In addition to reuse in laminated boards and paper-making materials, already underway for some higher-quality
timber, recently there have been new developments for use as a reducing agent, in power generation, or as cement-firing fuel, which are suited
to bulk processing. The background to this could
be said to be that, since timber is a carbon neutralmaterial, it is easier to positively evaluate its
thermal recycle than that of other materials.
For example, NKK, featured in Table 2-3, isturning its attention to bulk recycling of lowgrade timber from the two perspectives of biomass power generation using CFB boilers,16 andits use as a reducing agent for blast furnaces.
CFB boilers have the advantage of being
15

There has been some debate as to whether selfpropelling crusher facilities come under the definition ofindustrial waste processing facilities. The conclusion is that
this is not so when they are used by general construction
and other operators. Therefore, when intermediate processors operate self-propelling crushers as their business theyneed to have installation permission under the Waste Disposal Law. The market for this sector is thought to mainly
involve rental and lease to general construction companies,
etc.
16
Circulating fluidized bed (CFB) boilers are a type of
fluidized bed combustion in which combustion particles are
fluidized by combustible air. In terms of the different formsof fluidity of the combustion particles, they can be broadly
divided into stoker combustion, fluidized bed combustion,and pulverized coal combustion. Of these, stoker combustion has its emphasis in the incineration process, as exemplified by the stoker furnace used for incinerating waste. Pulverized coal combustion, conversely, is based in power
generation, as used in industrial thermal power generation.
Fluidized bed combustion lies in between the two, and issaid to be suited to waste power generation (incineration +power generation). In 1991, NKK entered a technical tie-up
with the German company Steinmüller, and is now manufacturing and selling these boilers.

compatible with a large range of fuels. As well assoft coal and lignite (brown coal), they can handle low-grade smokeless coal, semi-smokelesscoal, biomass of various kinds (peat, bark, wood
scrap), oils, and even sludge. With assistancefrom the Forestry Agency, NKK has been pursuing the development of an optimal recovery
and processing system for CCA timber 17 via
recycling and combustion in the Hirabayashi
district of Osaka since fiscal 2000. The company
claims to have confirmed the commercial feasibility of the operation, at least in large urban
areas.
For blasting into blast furnaces, waste construction timber is first roughly shredded, thenmore finely shredded (to less than 10mm) andused as a reducing agent. The company alreadyhas a healthy track record with used plastic forthis purpose, following the legislation on containers, packaging, etc. For that very reason, it isplanning to introduce hybridization, with used
construction-type plastics shredded and the PVC
removed, in addition to waste construction timber. Demonstrations currently in progress take up
the issues of (1) establishing wood shredding
technology, (2) establishing hybrid granulation
technology, (3) establishing airflow transportation technology, (4) elucidating the tuyere-end
behaviour of wood, and (5) confirming the effects on blast furnace operation and the stabilityof blasting. At the same time, the company isplanning to confirm problems on the quality side,
including converting CCA timber to slag anddetoxifying it, the complete decomposition of
insecticides and other substances at a hightemperature reduced atmosphere of 2,400°C, andso on.
Whatever the case, this is expected to open
up the way to bulk processing of low-grade timber, whose marketability has been poor until now.
However, for this technology to be utilized, theultimate task will be to guarantee a stable supply.
Also, in terms of marketability, we cannot ignore
the fact that waste construction timber differsfrom waste concrete, in that the users of recycled
timber are not limited to the construction industry but cross a broad spectrum. Mismatches in
17

CCA stands for “chrome, copper, and arsenic”, referring
to timber materials that contain preservatives, insecticides,
and other substances.

supply and demand could, therefore, easily arise
from an uneven distribution of information. If
information mediation functions can be strengthened with a view to solving such mismatches, asin the case of Komatsu, effects may be expected
in terms of both expanding markets and cutting
costs.
Closely related to this guarantee of volume
is the trend towards cost shrinkage. As with
waste concrete, waste construction timber offers
only limited absorption of transportation costs,
and cost cutting is mainly a question of how far
these costs can be kept down. One approach tothis, as in the initiative by Takenaka Corp. shownin Table 2-3, would be a scheme designed to cut
distribution costs in collaboration with a logistics
concern (mainly upper grade timber). Another,presented by construction machinery manufacturers, is to avoid transportation costs by increasing on-site processing (all grades), as in thecase of waste concrete. Much attention is now
focussed on what sort of schemes will be presented in future for large-scale recycling such as
biomass power generation and the use of timberas a reductant, with a view to securing a stable
volume of waste construction timber.
(3) Initiatives by the construction industry
Efforts such as the above are backed by initiatives from the construction industry itself. At
present, moves in support of the recycling industry are becoming more lively in terms of bothintake and outlets, centering on the leading general construction companies (i.e. the principal
contractors). These include rigorous implementation of sorted dismantling (typified by “zeroemission” work sites) and an expansion of green
purchasing aimed at positive use of recycledresources (Table 2-4). Since much depends onefforts made on-site in curbing the generationand output of construction wastes, there is considerable regional disparity in the level of development of arterial infrastructure, particularly
when it comes to medium and small sites. Consequently, a uniform response is difficult and the
problem cannot be solved simply by introducing
a catch-all scheme. Many companies, in fact, areattempting initiatives on a total corporate scale,such as increasing the use of pre-cut timber, arranging construction materials in units, using
Development Bank of Japan Research Report/ No. 28

33jects. Here, the waste generated from construction sites are completely recycled, and the company is gradually expanding the range of projects
targetted by the system. The knowhow obtainedin the process has been compiled in the form of a
“Zero Emissions Manual”, and as well as distributing this to all work sites and aiming forhorizontal development, the company says thiswill also be reflected in “green procurement” infuture. Takenaka Corp., which has created thewaste timber recycling system mentioned above,
introduced a travelling recovery system for its
work sites in the Tokyo area from 2001, and is
promoting a strengthening of waste sorting insmall-scale sites where sorting had previously
been slow to develop due to cost factors. This
could therefore be called a good example of system improvement through the horizontal development of knowhow.

blue sheets on all floors, simplifying packaging
in agreement with construction material transporters, and other efforts designed to reduce
waste generation. Their concentration of efforts
in accumulating knowhow and horizontal development aimed at efficient sorting and recycling
will surely have significant effects. Shimizu
Corp., for example, has created a system whereby data gathered and materials prepared on construction waste in individual manual work at its
2,000 sites throughout Japan to date are electronically networked and formed into databases,
which can then be uniformly managed by the
Head Office (the “Kantas” system). As of September 2001 the utilization rate was 100%, andthis is also contributing to a reduction in thewaste generation base unit. Obayashi Corp.,
meanwhile, has long been promoting efforts to
reduce waste. It has introduced a system of “zeroemission work sites”, mainly for large-scale pro-

Table 2-4 Outline of Construction Waste Countermeasures by Leading Generation
Construction Companies
Processing of construction waste (%)

Waste concrete

82

Intermediate
processing
14

Waste asphalt concrete
Wood scrap

86
20

11
73

Sludge1374

13Mixed waste
Waste concrete

5
59

76
34

19
7

Waste asphalt concrete
Wood scrap

62
34

35
43

3
23

SludgeMixed waste (controlled type)

4
16

82
77

14
7

Obayashi
Corp.

Kashima Corp.

Shimizu
Corp

Taisei Corp.

RecyclingFinaldisposal
4
37

Waste concrete
Waste asphalt concrete

93
96

7
4

Wood scrap
Sludge

89
72

11
28

Mixed waste (controlled type)

46

54

Waste concrete
Waste asphalt concrete

9
96

1
1

5
3

Wood scrap
Sludge

59
47

28
32

13
21

Mixed waste (controlled type)

42

10

48

Environmental
protection costs(million yen)(of which, waste
countermeasures)

Main related initiatives (FY2000)· Development of a Life Cycle Cost (LCC) Simulation System· Positive acceptance of service life extension work for exist17,391
ing buildings(9,959) · Zero emissions at construction sites
Component ratio · Expansion of green procurement
57.3%· Development of a concrete resource circulation system· Development of mud (sludge) volume reduction technology
27,409in the mud pressurized shield construction method(15,776) · Development and introduction of the “Kantas” system for
Component ratio
networking between all work sites nationwide
57.6% · Expansion of green procurement· Effective use of waste construction soil via the “Underground Continuous Wall Method for Re-use of Waste con23,052
struction soil”(10,663) · Recycling of glass wool (heat insulation material)· Creation of a “Small Lot Sorting and Recovery System”
Component ratio
aimed at sorting and recovery of mixed waste in the metro46.3%
politan and Kansai regions· Zero emissions at construction sites (4 sites in Tokyo andKansai)
24,765· Preparation and distribution of Zero Emissions Manual(14,504) · Expansion of green procurement
Component ratio · Development of a chemical ingredient database for construction materials
58.6%

Note:

The level of processing does not permit simple comparison as each company uses different definitions, etc. Environmental protection costs are taken from each company’s environmental account for fiscal 2000.
Source: Prepared from each company’s environment report

34

Development Bank of Japan Research Report/ No. 28

45
42
39

40

Actual figure
Reduction target

38
36

35

35

33
29

30
25

27

42
39

2

kg/m

28

34

31

29.2

28.9

28.2

95

96

97

98

99

20
15
10
5
0
90

91

92

93

94

2000
Year

Fig. 2-16 Targets and Actual Figures for Reduction of Mixed Waste Base Units
Source: Building Contractors Society, “Survey Report on Base Units for Construction-Type Mixed Waste”

Behind these initiatives lies the weight ofwaste countermeasure costs within each company’s environmental protection costs. These
efforts are becoming more and more advanced
each year, as they are linked to the incentive of
reducing costs (for example, see the mixed construction waste generation base unit survey inFig. 2-16). This, through reciprocal effects withthe various technology seeds seen above, is expected to encourage an upgrading of constructionwaste recycling projects.
2.4 Policy Tasks
From the angle of government policy, a responsethat laterally reinforces these moves is to be desired. The Green Purchasing Law and other legislation enacted around the time of the Construction Materials Recycling Act has fuelled expectations of a market expansion for recycled resources via public works. In fact, the basic principles of the Construction Materials Recycling
Act set out a policy whereby projects under direct public control would take the initiative inusing resources recycled from specific construction materials. In these basic principles, while
economy is regarded as secondary when using

these resources in works directly in the publicdomain, it is of course a basic condition that thequality and other requirements demanded foreach usage must be taken into consideration. So
now quality control comes into question. As
mentioned briefly in the foregoing, current quality standards do not in themselves assume recycled resources, and corrective measures areneeded in this respect. Under the amendment to
the Building Standards Law (Article 37-1 and 2of that Law), the materials used in the foundations, main structure, and other parts of buildings(“designated building materials”) are to be stipulated by the Minister for Land, Infrastructure andTransport. Of these, concrete may not be used
unless it complies with JIS A5308 (Ready Mixed
Concrete). These JIS standards assume graveland sand to be natural resources and crushedstone and crushed sand to be taken from natural
rock. Recycled resources are not included. Whenusing concrete that does not comply with JIS, theBuilding Standards Law requires individual authorization by the Minister. In demonstration
tests conducted so far on structural concrete using recycled resources, this individual authorization has been obtained even though the performance satisfies the JIS standards. While these proDevelopment Bank of Japan Research Report/ No. 28

35

cedures can be expected to improve with application, if we are to positively promote the use ofrecycled resources, we surely need to develop
quality standards that assume the use of recycledmaterials. A major overhaul of the JIS system is
now in progress, and, as one aspect of this, theMinistry of Economy, Trade and Industry hasreportedly started studies on environmental JIS
that would cover the environmental sector laterally.18 Developments of this sort could be expected to bring improvements to such points aswell. Taking the example of waste concrete, it isbeyond doubt that marketability will be hugely
improved once quality standards have finallybeen arranged to suit the various stages (highlevel recycled aggregate for use in architectural
structures, medium-level recycled aggregate foruse in foundations and other works, and cascade
recycled aggregate for basecourse and re-fill, andother materials) and public works procurement isconducted positively in line with this.
More problems arise because it is notknown, until the demolition phase, to which level
the use of recycled aggregate is suited. While
technology seeds for recycling concrete and reusing it as a structural material are now being
established, as mentioned above, not all demolished structures are covered.19 Since these arebuildings for use in human activity, every attention has to be paid to guaranteeing reliability.
Only aggregate that clears careful scrutiny ofsaline concentration, particle size distribution ofcoarse and fine aggregate, and so on, can be used
for horizontal material recycling. Test pieces
have to be sampled from the core of a building
prior to demolition, and these have to be tested inadvance for alkali aggregate reaction and salinecontent ratio. This determines whether or not theaggregate can be re-used. While the quality ofthis aggregate can basically be inferred, to a certain extent, from the year in which the building
was built, when actually examining a building it
is said that the quality is not necessarily better if
18

In January 2002, a Working Group was set up in the
Select Committee on Environment and Resource Recyclingin the Japanese Industrial Standards Committee.
19
At present, the aggregate recovered from buildings thathave reached demolition age is said to be superior in manycases, mainly consisting of river gravel, but the proportionof aggregate that can be used in architectural structures issaid to decrease as the age progresses.
36

Development Bank of Japan Research Report/ No. 28

the building is older. Considerable effects could
be yielded by developing databases, for example
by taking samples of aggregate whenever anexisting building undergoes renovation or similar
work and specifying the recycling level in advance. Policy initiatives are also to be expectedin this respect. For the time being, a variety ofsystems (for example, concrete diagnosticians)
have been developed to meet the arrival of themaintenance era. It would probably be effective
if the functions of gathering these kinds of quality data could be included as one aspect of this.
3.

Problems Concerning Waste
Construction Soil

3.1 Problems with Waste Construction Soil
So far, we have outlined the impact on the construction recycling industry with principal focus
on materials targetted by the Construction Materials Recycling Act. Another issue to consider iswaste construction soil, which is forecast tochange dramatically in future. As also seen
above, waste construction soil accounts for thegreatest weight in the output of constructionwastes. As such, an increase in output is anticipated, with the oncoming renewal of social infrastructure in future (Fig. 1-16). Waste construction soil has until now been distributed as acommodity, mainly for inland use when elevating farmland or housing land, filling valleys, andso on. With the recent advance of information
technology, trading between construction sites
has also become more efficient, and for this andother reasons waste construction soil is not treated as directly contentious by the Construction
Materials Recycling Act. However, with a separately ongoing debate for legislation to cover soil
pollution countermeasures, this is highly likely tohave a major impact on construction recycling
trends.
Specifically, there are fears that, by creating
an obligation to take measures against soil pollution, the proportion of waste construction soil
disposed of as polluted soil will increase withadvances in pollution surveys and identifica-

tion.20 Unpolluted soil will probably continue tobe processed through inland acceptance andtrading between construction sites as a negotiable commodity. However, as the identificationof polluted soil advances, the final disposal
volume from the construction industry will increase, and, in the worst case, there is an undeniable possibility that it could cancel out the effects of reduction of final disposal volumes due
to recycling of waste concrete and other construction wastes. Moreover, pollution fears could
stir up concern over the quality of all waste construction soil, and this could hinder the efficiency of distribution. Waste construction soil has
the potential to indirectly exert a huge impact on
trends in the Construction Materials Recycling
Act, triggered by these problems of soil pollution.
To avoid this kind of situation, instead of transporting contaminated soil to landfill sites, it
should be purified and then re-buried, or used inother sites, and thus lead to the recycling of soil.
3.2 Characteristics of the Environmental
Remediation Industry
Normally, the following points are made in connection with the problem of soil pollution. (1)The transportation, dispersion and dilution ofsubstances are incomparably slower than those in
the atmosphere or surface water, and, in addition
to “end-of-pipe” measures against pollution
sources, purification and stabilization processes
are required (stock-type pollution). (2) Furthermore, it takes a long time before input pollutants
become manifest as problems, and the relationships of responsibility are often ambiguous in themeantime. Also, since the soil beneath land
owned by individuals or corporations is affected,
rules to adjust complex relationships of rights
and liabilities would be needed before countermeasures could actually be attempted. In many
western countries, in fact, attempts have been
made to address this problem with legislation for20

It is already rapidly becoming the norm for owners tocarry out pollution surveys before starting new construction
works, in response to the ongoing development of frameworks for soil pollution countermeasures by local authorities in a form that pre-empts national regulation (as seen in
the environmental guarantee ordinances issued by the Tokyo metropolitan government). Therefore, we may see thiskind of tendency as already gaining strength.

soil protection since the 1980’s. In Japan’s case,however, countermeasures have been limited to
specific exposed channels such as groundwateror farmland, and no legal provisions exist to cover the geological environment as a whole. Consequently, progress in real measures against thisproblem is said to be slow. In the meantime, with
progressive changes in the industrial structure
and an increasing pressure towards securitizationof real estate (mainly land that was once used bymanufacturing industries), there is now a common perception that the risk of soil pollution
forms a major obstacle to the conversion of landuse. Behind this lies the common knowledge thatlegal provisions are about to be introduced forcomprehensive measures against soil pollution, amove which has been pending for many years.
As to the industry responsible for soil pollution countermeasures (which we will call “theenvironmental remediation industry”), several
calculations have already been made on the scaleof the latent market that is predicted to surface as
legislation for soil pollution countermeasures
takes shape. In every case, they indicate a colossal market scale.21 Corporate activity in this sector started in earnest in the second half of the
1980’s. The main protagonists were large corporations with main business interests in areas suchas construction, engineering manufacturing, andnon-ferrous metal refining. These were mainlycompanies with financial and technical strength.
They started by introducing technology frompioneering companies in western countries, but
their technical level is said to have alreadyreached that of the west in just over 10 years
since then.
On the other hand, the environmental remediation market that provides a stage for corporate
activities is of a special type that does not easily
permit comparison. Since there are no legal pro21

For a hypothesis on the profile and market scale of theenvironmental remediation industry, see Takegahara (1999).
It should be borne in mind that this type of calculation has
its limitations. For example, (1) calculations are based on
the present form of land use, therefore land owned by industries without risk of soil pollution (e.g. the service industry) is not considered and the calculation errs on theconservative side. Or (2) the estimates are too high as they
assume processing costs under the current circumstances ofincomplete competition. Nevertheless, we feel that they are
significant in estimating magnitude.

Development Bank of Japan Research Report/ No. 28

37

visions, the majority of soil pollution countermeasures to date have been implemented independently by large corporations pressed by necessity. Despite their “independent” nature, once
pollution comes to light there is a great risk thata company will be exposed to harsh social criticism and its corporate image impaired, as many
past examples show. Therefore, information on
soil pollution countermeasures is rigorously
controlled, and renewal contracts have become
centred on cross trading. These market characteristics have also affected the format of environmental remediation companies. In order to
win the reliance of orderers concerned about
information management, the full-line format(one-stop shop) has become the norm, creating asystem of technology whereby one company canhandle all kinds of pollution. Since the technology involved in environmental remediation
crosses a broad spectrum, covering all of it imposes a huge burden on companies. So far, theenvironmental remediation market in Japan has
had low potential for advance comparison fromthe user’s point of view. From the provider’spoint of view, meanwhile, it entails a high burden of research and development, etc., comparedto the relatively small absolute number of cases.
This can therefore be described as a special domain.

The introduction of legal provisions for measuresagainst soil pollution will bring major changes tothese characteristics. In reality, we still await
detailed system design and operational trends.22
Nevertheless, as a general trend, it is thought thatdemand will increase due to the obligation forsoil pollution surveys and purification and theintroduction of inventory management for polluted land by local authorities and others. Due tothe reduced anonymity of information, meanwhile, competitive principles will become moremobile and downward pressure on prices will

start to mount.
Increased demand involves the dual aspectsof expansion of the client base and increased
processing volume via substitution for final disposal. Since surveys and purification measures
have been made obligatory under certain conditions, the client base is expected to expand vastly,
for a number of reasons. For example, (1) implementing bodies will expand from the independent action taken by large corporations to abroader range including core companies andsmall and medium enterprises, while at the sametime (2) the range of interested parties (otherthan those under legal obligation to purify)pressed by the need to evaluate the risk of soil
pollution will also increase greatly. In one sense,
the survey and evaluation process is expected togreatly enlarge the broad base, mainly concerning the needs of companies that have not paid
great attention to this problem in the past, thereal estate valuation industry and financial institutions that have conventionally evaluated realestate values without attention to the risk of soil
pollution, and others.23
Substitution for final disposal means that therelative precedence of remediation processes
over final disposal will increase because, even if
attempting to transport contaminated soil off site
for landfill, acceptance destinations will become
even more difficult to secure and disposal costs
will rise even higher. These, in turn, are because
the absolute volume of polluted earth will increase while no improvement can be foreseen in
the tight situation of landfill sites.
The expanding demand for remediation is
expected, in one sense, to increase the need for
purification (re-filling, transportation and re-use
after purification) on-site not accompanied bytransportation costs. However, on-site processing
involves many elements of uncertainty, such as
the constraints on land use if the construction
period becomes protracted, problems of purified
soil for outward transportation (i.e. whether or
not an acceptance destination can be found,transportation costs), and so on. Therefore, com-

22

23

3.3 Changes due to the Introduction ofLegislation

For the state of studies at present, see “Directions for a
System of Soil Environment Protection Measures (Interim
Report)” (September 2001) by the Study Group on Directions for a System of Soil Environment Protection Measures,
Ministry of the Environment.

38

Development Bank of Japan Research Report/ No. 28

Efforts to promote the upgrading of due diligence services (such as quantified evaluation of soil pollution risks) in
response to this demand include the Land Solution company
established with capital from Kurita Water Industries Ltd.,
Dowa Mining Co., Ltd., and others.

petition to develop technology for reducing costs
and shortening construction periods willprobably progress in future. Various new
methods have been proposed by renewal companies in this respect. In particular, the mobile
mixers introduced by construction machinery
manufacturers for soil improvement are receiving attention as tools that go beyond their initially assumed purpose and can be used efficiently against contaminated soil on site (i.e.
mixing of chemical agents). Instances of technology exchange and fusion with the construction recycling sector have been seen (for example, improved mixing levels in response to requests from remediation companies), and further
advances are expected. In the offsite processing
sector (i.e. processing after transportation to
dedicated plants), meanwhile, companies thatcan use existing equipment and knowhow,mainly in non-ferrous metal refining, and canabsorb purified soil on their own premises havealways had a competitive advantage. Dependingon the region, these are expected to absorb aconsiderable part of the substitution for final
disposal. The problem with offsite processing is
its transportation costs. It is hoped that a more
efficient system will be presented in future, forexample through tie-ups with logistics concerns,
as seen in construction recycling.
Whatever the case, the environmental remediation industry following the introduction oflegal provisions will face a harsh business environment in which, while the demand volume
expands, greater cost effectiveness will be demanded than in the past. Given this business en-

vironment, the full-line business model, in whicheven processing technology bearing little relation
to the company’s own competence must be fullyinternalized, would be difficult to maintain interms of cost competitiveness. In future, one
would expect to see more tie-ups between remediation companies that are capable of complementing each other.
Many of the protagonists in this remediation
business, most notably general construction
companies, are the same as those involved inconstruction recycling. In this sense, the environmental remediation business could be seen as
an important element of construction recycling in
the broad sense, and positive efforts to this end
are expected from all companies.
In terms of policy, as was also mentioned in
the report by the Ministry of the Environment’s
Study Group, support measures will need to be
developed and enhanced in line with changes
accompanying the introduction of regulations.
This could include granting financial incentives
to companies newly burdened with legal obligations. If, for example, a tax allowance system
could be introduced not only for small and medium enterprises that are barely able to accept new
financial burdens but also for large corporations,
it could have the effect of guaranteeing the efficacy of construction recycling through thestimulation of the environmental remediation
business. Meanwhile, action on quality control isalso to be desired, enabling soil that has been
purified – whether on or off site – to be distributed in the same way as unpolluted excavatedearth.

Development Bank of Japan Research Report/ No. 28

39

III Developments Aimed at
Prolonging Service LifeJapan is now approaching a period of renewal ofbuildings and social infrastructure that were developed in the era of rapid growth, and there arefears of an unprecedented expansion of construction waste accompanying this. As a result, Japan
has created a system of construction recycling
ahead of other countries. In future, to achieve
further progress in technical development aimed
at efficient recycling as we have seen until now,
backing from government policy will surely become even more important to efficiently promoting urban renewal projects. At the same time,slowing the pace at which existing buildings andstructures reach their demolition phase is anequally important task. In this sense, efforts
aimed at prolonging service life, an issue of increasing concern today, could be seen as having
a major influence on our prediction of future
developments involving construction waste.
1.

Moves to Prolong Service Life

Now that the perspective of life cycle assessment(LCA) has become commonplace, there is awidening perception that conventional construction works, featuring repeated cycles of scrapand-build over short periods, are not good for theenvironment. This, together with other background factors such as the current deteriorationof fiscal finances, has brought the issue of prolonging the service life of buildings and structures to the fore as a major social requirement recently.
Prolonging the service life of buildings andstructures means shortening the gap between theservice life naturally expected of these in termsof their structure (the expected value) and theactual service life. For new construction works it
is thought to be achieved by introducing newtechnology to guarantee service life over the longterm, and for existing buildings by applying appropriate maintenance and thus extending theusable time span as far as possible. Although theimportance of prolonging service life had previously been pointed out, it has been slow to materialize in Japan compared to western countries,
and has now been highlighted as a problem.
40

Development Bank of Japan Research Report/ No. 28

Factors governing this prolongation are said
to be broadly divisible into two types, namely
those of installation and maintenance, i.e. technology, and those not falling under this description.24 In other words, to consider the reasons forthe tardiness in this area, we may first divide
them into inadequacy of technical capabilities
and the impact of other factors. A variety offactors have been pointed out as not falling under
the description of technology. For example, thefact that the emphasis is on land and that thevalue of buildings has been underestimated, amentality derived from climate and customary
usage, the sovereignty of personal ownershiprights, or the fact that scenery and urban landscapes are not regarded as social assets, and soon. However, the biggest of all is probably thefact that obsolescence in terms of functions has
advanced more quickly than anticipated. The
environment surrounding buildings and structures is gradually changing, as witnessed by theadvance of population aging, the strengtheningof disaster prevention or energy saving policies,
and so on. Often, the requirements accompanying this are also changing greatly. In particular,
there must be some requirements associated withenvironmental changes that were not evenimagined when these buildings were first constructed. Recently, it has been said that the advance of the IT revolution (for example, adequate floor height for LAN wiring) has caused a
rapid obsolescence of the functions of existingbuildings and structures.
As for technology aimed at prolonging
service life, various seeds are already at thecommercial stage. These include some that may
be expected to have a major effect on the entire
problem of cities and the environment, such as
preventing heat islands and improving scenerythrough rooftop garden technology. The way inwhich these are diffused in future holds the potential to greatly further the service life extensionof buildings and structures in Japan. Meanwhile,
sure progress is being made in developing service systems to link these technologies to actual
needs, as in the establishment of special units in
response to the renewal market in general construction companies and many other firms.
24

See Hayashi (2001) and others (References).

Viewed in these terms, the problems of prolonged service life in Japan may be sought exclusively in elements other than technology.
2.

Changes in the Economic Climate and theDevelopment of Policies

As mentioned above, elements other than technology are many and various. While no measures
could possibly embrace them all, policies designed to remove obstacles are now being developed. One isolated example could be trends inthe housing market. The Action Plan for Improving the Housing Market, drawn up by the
Ministry of Land, Infrastructure and Transport inAugust 2001, cites the development of a trading
market for second-hand housing as a priority task.
This reveals that the focus of housing policy isshifting from the stimulation of demand for new
construction to expansion of the second-handmarket. The scale of the second-hand housing
market in Japan is tiny compared to those in thewest. It is said that a lot of second-hand housing
is demolished, regardless of its structural life
cycle, when no buyer can be found. The Action
Plan indicates a trend towards promoting thecreation of schemes that aim to solve asymmetryof information, which hinders trading in secondhand housing, by introducing systems of performance indicators and price appraisal for secondhand housing. On the private-sector side, meanwhile, the supply of low-cost home improvement
services is increasing in response to these trends.
In the housing market, in which housing is often
thought to lose its value after around 15 years, it
has been pointed out that many issues, such as
taxation, remain to be addressed before the second-hand market can be activated. Nevertheless,with the focus of policy shifting from flow tostock, this is also expected to have an effect on
prolonging average life cycles in the housing
sector in future, hand in hand with demands forsuitable burdens of demolition costs under theConstruction Materials Recycling Act.
Similarly, the development of a basis for
identifying the characteristics of existing stockand maintaining it appropriately is being promoted (for example, the issue of Standard Specifications for Concrete Structure MaintenanceWork by the Japan Society of Civil Engineers, orthe creation of “concrete diagnosticians”, a system of qualifications for diagnosis and maintenance of concrete structures by the Japan Concrete Institute). This is also expected to contribute to the removal of obstacles other than technical elements with a view to prolonging service
life in future. On the obsolescence of functions,thought to be the biggest problem of all, meanwhile, many companies that supply technology
for prolonging service life not only offer life
extension works for building frames, but are also
turning to the provision of comprehensive engineering services as well. Thus, with the increasing sophistication of these services, suitable sections that can be corrected through appropriate
renovation work are expected to be covered. In
terms of the relationship with construction recycling, if the process of reinforcing maintenanceof existing stock could lead to a system for managing their characteristics in the form of a database, it would also contribute to an understanding of the long-term output volume of recycledmaterials at all levels, from re-use in architectural structures to use in basecourse materials. It
should also provide an opportunity for further
increasing the efficiency of recycling systems.
3.

Conclusion

As moves become more lively in search of a newurban image for the next generation in Japan, as
exemplified by urban renewal projects, this survey has attempted to approach the problem ofurban reconstruction from the perspective of
resource recycling. Both buildings and social
infrastructure stock are approaching the renewal
phase for stock that was accumulated rapidly up
to the first half of the 1970’s. If renewal prceeds
to the optimal state of inventory-taking with aview to building a new urban image, there is an
undeniable possibility that the output of construction waste will increase at a pace not experienced before. Therefore, a response fromboth the policy side and industry is important inorder to prevent this problem from becoming abottleneck for urban renewal. As already seen,
Japan has constructed a new framework for construction recycling in advance of other countries,
while a succession of various technological seeds
and business models are being created by indus-

Development Bank of Japan Research Report/ No. 28

41

try in line with this. Among others, system improvements are expected to develop at various
levels in future to ensure that these efforts by
public and private sectors yield reciprocal effects.
An example of this is the achievement ofconsistency between the problem of quality control, whereon hangs the expansion of marketability for recycled materials, and that of soil
pollution, now subject to ongoing debate.
While measures for recycling are promoted,
various public and private sector initiatives
aimed at prolonging service life lead to expectations that the scenario of rapid increase of construction waste can be eased somewhat, and future progress is to be expected in this respect. As
an exercise, Fig. 3-1 shows what would happen
if the demolition probability rate were changed
from building starts in fiscal 2000 (i.e. the peakyears for generation of waste were extended),based on the assumption that the conditions forcalculation in 1 above are changed and progress
is seen in prolonging the service life of buildings
and structures. It is to be hoped that this prolongation of service life, together with the development of recycling infrastructure, will serve toprevent the problem of resources recycling fromcreating bottlenecks in urban renewal.
Now, a policy framework to regulate future
trends is being developed. The Construction
Materials Recycling Act has become law, andstudies on legal provisions for soil protection are
in progress. It could be seen as desirable that a
consistent policy framework should be created
and developed, partly with a view to utilizing thevarious technological innovations of the private
sector that are being developed on the above
basis.

450
400

If no change in demolition probability rate
If service life is prolonged

350

Million tons

300
250
200
150
100
50

60
62
64
66
68
70
72
74
76
78
80
82
84
86
88
90
92
94
96
98
20
00
02
04
06
08
10
12
14
16
18
20
22
24
26
28
30
32
34

0

Fiscal Year

Fig. 3-1 Reduced Generation of by-Products (excluding waste construction soil)
through Extension of Service Life
Note:

Calculations assume that the “no change in demolition probability rate” assumed in 1 above is changed, steps aretaken to prolong the service life of buildings and structures, the demolition probability rate is amended frombuilding starts in fiscal 2000, and the peak waste years are extended for timber buildings (from 33 to 40 years),
non-timber buildings (from 40 to 50 years), and public and private sector civil engineering works (10 years added
to the estimated service life in each case).
Source: DBJ calculations

42

Development Bank of Japan Research Report/ No. 28

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Assessment”, Real Estate Survey Monthly
Report No. 278/279, Japan Real Estate Research Institute.
Ishizuka, Y. (1994) “Recommendations forConstruction Economics”, Kagaku Kogyo
Nipposha.
Blohm, W., and Ohashi, Y. (1995) “Comparative Research on Urban Planning Methods(With Focus on Japan and Germany)”, Nippon Hyoronsha.
Kawamura, K. (2001) “This is the Construction
Materials Recycling Act: Outline of Ordinances, Basic Principles”, Construction Recycling, winter 2001 issue.
Plastic Waste Management Institute (2001)“LCA Survey Research Reporters on theProcessing and Disposal of Plastic Waste”.
EPA Planning Bureau, ed. (1998) “Japan’sSocial Infrastructure: Stock for the 21stCentury”, Toyo Keizai Shimposha.
Government Buildings Department, Construction Minister’s Secretariat, ed.
(2000) “Life Cycle Cost of Buildings, Revised”, Keizai Chosakai.
Council for PR and Promotion of Construction Waste Recycling (1999) “Comprehensive Measures for Construction Wastes”.
Council for PR and Promotion of Construction Waste Recycling (1999) “Guide to
Recycled Construction Materials”, Keizai
Chosakai.
Council for PR and Promotion of Construction Waste Recycling (2001) “Construction
Recycling Handbook”, Taisei Shuppansha.
Construction Materials Recycling Act Research Group, ed. (2000) “Interpreting theConstruction Materials Recycling Act”,
Taisei Shuppansha.
Construction Economics Research Institute(2001) “Medium- to Long-Term Forecast
for the Construction Market”.
Construction Price Survey Association (1995)“Estimates for Recycling and Processing ofConstruction Wastes”, Construction Price
Survey Association.

Shimizu, Y., Hirakata, I. (2001) “Construction
Zero Emissions Q&A (Revised Edition)”,Nikkan Kensetsu Tsushin Shimbunsha.
Wastes Subcommittee, Environment Committee,
Building Contractors Society (1998) “Construction Wate Management Guidebook”.
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Takegahara, K. (2000) “Current Status andFuture Perspective of the Japanese Remediation Industry: Technology and Market
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Hayashi, T. (2001) “Prolonging the Service Lifeof Buildings”, article in Nikkan Kogyo
Shimbun, 29.11.2001.
Hayashi, N. (1993) “Economics of Urban Problems”, Nihon Keizai Shimbunsha.
Hirota, Y. (2001) “(Appraisal) Evaluation of
Soil Polluted Land”, Real Estate Survey
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Estate Research Institute.
Fujii, A. (1993) “Forecasts for Output Volume
of Construction-Type Waste and Measures
to Address It: Scrap Generated from Stock”,
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Fukunaga, K (2001) “The Polluted Soil Purification Industry”, Real Estate Survey
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Honda, A. (1996) “Pictorial Guide to the Construction Industry and Recycling”, Green
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Yamazaki, F. (1999) “Economic Analysis ofLand and the Housing Market”, Universityof Tokyo Printing Department.

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44

Development Bank of Japan Research Report/ No. 28

List of Back Numbers (Including JDB Research Report)
No. 28 Urban Renewal and Resource Recycling: For the Creation of a Resource Recycling Society (this issue)
No. 27 Labor’s Share and the Adjustment of Wages and Employment, June 2002
No. 26 Survey on Planned Capital Spending for Fiscal Years 2001 and 2002, May 2002
No. 25 Environmental Information Policy and Utilization of Information Technology: Toward a Shift in Environmental Policy Paradigm, March 2002
No. 24 The Changing Structure of Trade in Japan and Its Impact: With the Focus on Trade in Information
Technology (IT) Goods, March 2002
No. 23 Microstructure of persistent ROA decline in the Japanese corporate sector: Inter-company disparties
and investment strategies, March 2002
No. 22 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation and Prospects ofEvolution, February 2002
No. 21 Survey on Planned Capital Spending for Fiscal Years 2000, 2001 and 2002
No. 20 Current Situation and Challenges for Cable Television in the Broadband Era, October 2001
No. 19 Recent Trends in the Japanese Economy: The Japanese Economy under Deflation, August 2001
No. 18 Introduction of a Home Appliance Recycling System: Effects & Prospects: Progress towards Utilisationof Recycling Infrastructure, June 2001
No. 17 Survey on Planned Capital Spending for Fiscal Years 2000 and 2001, June 2001
No. 16 Revitalization of Middle-aged and Elderly Workers in Japan’s Labor Markets: Requiring the Expansionof the Vocational Training Functions, March 2001
No. 15 Risk-Averting Portfolio Trends of Japanese Households, March 2001
No. 14 Consumption Demand Trends and the Structure of Supply: Focus on Retail Industry Supply Behavior,
March 2001
No. 13 Recent Trends in the Japanese Economy: Weakness of Current Economic Recovery and Its Background,
March 2001
No. 12 Empirical Reassessment of Japanese Corporate Investment Behavior: Features and Changes since the1980s, based on Micro-level Panel Data, March 2001
No. 11 Survey on Planned Capital Spending for Fiscal Years 1999, 2000 and 2001, October 2000
No. 10 Job Creation and Job Destruction in Japan, 1978-1998: An Empirical Analysis Based on EnterpriseData, September 2000
No. 9

Recent Trends in the Japanese Economy: Information Technology and the Economy, September 2000

No. 8

Trend of International Reorganization Affecting the Japanese Automobile and Auto Parts Industries,
June 2000

No. 7

Survey on Planned Capital Spending for Fiscal Years 1999 and 2000, June 2000

No. 6

Current Status and Future Perspective of the Japanese Remediation Industry: Technology and Market
for Underground Remediation, May 2000

No. 5

Recent Trends in the Japanese Economy: The 1990s in Retrospect, March 2000

No. 4

Destabilized Consumption and the Post-bubble Consumer Environment, February 2000

No. 3

The Slump in Plant and Equipment Investment in the 1990s: Focusing on Lowered Expectations, theDebt Burden and Other Structural Factors, January 2000

No. 2

Survey on Planned Capital Spending for Fiscal Years 1998, 1999 and 2000, November 1999

No. 1

Corporate Strategies in Japan’s Semiconductor Industry: Implications of Development in Other AsianCountries, November 1999_________________________________________________________________________________________JDB Research Report
No. 96 Recent Trends in the Japanese Economy: Focused on Fixed Investment and Capital Stock, August 1999
No. 95 Efforts to Protect the Natural Environment in the United States and Germany: Environmental Mitigation and Biotope Conservation, July 1999
No. 94 Survey on Planned Capital Spending for Fiscal Years 1998 and 1999, June 1999
No. 93 Towards the realization of ‘environmental partnership’: A survey of Japan’s environmental NPO sector
through comparison with Germany, June 1999
No. 92 The Impact of Demographic Changes on Consumption and Savings, March 1999
No. 91 Recent Research and Development Trends in Japanese Enterprises: Technology Fusion, March 1999
No. 90 Recent Trends in the Japanese Economy: Prolonged Balance Sheet Adjustment, January 1999
No. 89 Impact of Asset Price Fluctuations on Household and Corporate Behavior: A Comparison between
Japan and the U.S., December 1998
No. 88 Survey on Planned Capital Spending for Fiscal Years 1997, 1998, and 1999, December 1998
No. 87 Foreign Exchange Rate Fluctuations and Changes in the Input-Output Structure, November 1998
No. 86 Structural Changes in Unemployment of Japan: An Approach from Labor Flow, November 1998
No. 85 Recent Trends in the Japanese Economy: Characteristics of the Current Recession, August 1998
No. 84 R&D Stock and Trade Structure in Japan, August 1998
No. 83 Survey on Planned Capital Spending for Fiscal Years 1997 and 1998, August 1998
No. 82 The Significance, Potential, and Problems of DNA Analysis Research: Establishing Public Acceptanceis Essential, May 1998
No. 81 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996, 1997 and1998 Conducted in August 1997, March 1998
No. 80 Recent Trends in the Japanese Economy: Growth Base of the Japanese Economy, January 1998
No. 79 Information Appliances: The Strength of Japanese Companies and Tasks for the Future, January 1998
No. 78 Challenges and Outlook for the Japanese Machinery Industries: Impact of ISO14000 Series and Environmental Cost, January 1998
No. 77 Current Conditions and Issues of Computerization in the Health Care Industry: For the Construction of
a Health Care Information Network, January 1998
No. 76 Household Consumption and Saving in Japan, December 1997
No. 75 The Direction of Japanese Distribution System Reforms: Strengthening the Infrastructure to Support
Diverse Consumer Choices, November 1997
No. 74 Foreign Direct Investments by Japanese Manufacturing Industries and Their Effects on International
Trade, October 1997
No. 73 The Impact of the Changing Trade Structure on the Japanese Economy: With Special Focus on the
Effects on Productivity and Employment, October 1997
No. 72 An Analysis of Foreign Direct Investment and Foreign Affiliates in Japan, August 1997
No. 71 Recent Trends in the Japanese Economy: Stock Replacement and New Demand as Aspects ofEconomic Recovery, August 1997
No. 70 Corporate Fundraising: An International Comparison, June 1997
No. 69 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in February 1997, May 1997
No. 68 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1996 and 1997
Conducted in August 1996, August 1997
No. 67 An International Comparison of Corporate Investment Behavior: Empirical Analysis Using Firm Data
from Japan, France and the US, April 1997
No. 66 Housing in the National Capital: Analysis of the Market for Housing using Micro Data, March 1997
No. 65 The Environment for Locating Business Operations in Major East Asian Cities, January 1997
No. 64 Direction of Reconstruction of Business Strategy in the Chemical Industry, January 1997
No. 63 Reflection on Discussions Concerning Regulation of the Electric Power Industry: Deregulation of theElectric Power Industry in Japan and Implication of Experiences in the United States, December 1996
No. 62 Current Status and Future Perspective of the Japanese Semiconductor Industry, November 1996
No. 61 A Breakthrough for the Japanese Software Industry?: Responsiveness to Users’ Needs is the key, October 1996
No. 60 Recent Trends in the Japanese Economy Focusing on the Characteristics and Sustainability of the Current Economic Recovery, September 1996
No. 59 Analysis of the Primary Causes and Economic Effects of Information: Related investment in the UnitedStates and Trends in Japan, August 1996
No. 58 Selected Summaries of Research Reports: Published in FY1995, June 1996
No. 57 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1995 and 1996
Conducted in February 1996, May 1996
No. 56 Recent Trends in the Japanese Economy, May 1996
No. 55 Issues Concerning the Competitiveness of the Japanese Steel Industry, February 1996
No. 54 Changes in the Financial Environment and the Real Economy, January 1996
No. 53 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994, 1995 and1996 Conducted in August 1995, October 1995
No. 52 Current Economic Trends: Focusing on the Appreciation of the Yen and its Effects, October 1995
No. 51 Problems Concerning the International Competitiveness of the Petrochemical Industry, October 1995
No. 50 An Economic Approach to International Competitiveness, October 1995
No. 49 Selected Summaries of Research Reports Published in FY1994, July 1995
No. 48 Strategies for Improving the Efficiency of the Japanese Physical Distribution System: Part 2, July 1995
No. 47 Issues on International Competitive Strength of the Auto Industry, June 1995
No. 46 Problems Concerning the International Competitiveness of the Electronics and Electric Machinery Industry, June 1995
No. 45 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1994 and 1995
Conducted in March 1995, June 1995
No. 44 Strategies for Improving the Efficiency of the Japanese Physical Distribution System, March 1995
No. 43 Capital Spending Recovery Scenario Cycle and Structure, August 1994

No. 42 Progress of International Joint Development between Industrialized Countries on the Private Level,
May 1994
No. 41 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993, 1994 and1995 Conducted in August 1994 , November 1994
No. 40 Selected Summaries of Research Reports Published in FY1993, June 1994
No. 39 Recent Trends in Japan’s Foreign Accounts, April 1994
No. 38 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1993 and 1994
Conducted in March 1994, April 1994
No. 37 Economic Zones and East Asia Prospect for Economic Activity Oriented Market Integration, December
1993
No. 36 Japanese Corporate Responses to Global Environmental Issues, December 1993
No. 35 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992, 1993 and1994 Conducted in August 1993, September 1993
No. 34 Structure of Profit to Capital in the Manufacturing Industry, September 1993
No. 33 Comparison of the Japanese and The U.S. Labor Markets, October 1992
No. 32 The Relative Competitiveness of U.S., German, and Japanese Manufacturing, March 1993
No. 31 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1992 and 1993
Conducted in March 1993, April 1993
No. 30 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991, 1992 and1993 Conducted in August 1992, December 1992
No. 29 Flow of Funds in the 80s and Future Corporate Finance in Japan, November 1992
No. 28 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1991 and 1992
Conducted in February 1992, April 1992
No. 27 An Analysis of Foreign Direct Investment in Japan, March 1992
No. 26 Projection of Japan's Trade Surplus in 1995: Analysis of Japan's Trade Structure in the 80s, February
1992
No. 25 Intra-Industry Trade and Dynamic Development of The World Economy, November 1991
No. 24 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990, 1991 and1992 Conducted in August 1991, September 1991
No. 23 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1990 and 1991
Conducted in February 1991, March 1991
No. 22 Trends of the Petrochemical Industry and its Marketplace in East Asia, March 1991
No. 21 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989, 1990 and1991 Conducted in August 1990, September 1990
No. 20 Deepening Economic Linkages in The Pacific Basin Region: Trade, Foreign Direct Investment andTechnology, September 1990
No. 19 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1989 and 1990
Conducted in February 1990, March 1990
No. 18 Petrochemicals In Japan, The US, and Korea an Assessment of Economic Efficiency, February 1990
No. 17 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1988, 1989 and1990 Conducted in August 1989, October 1989

No. 16 Impact of the EC Unification on Japan’s Automobile and Electronics Industries, August 1989
No. 15 Industrial and Trade Structures and the International Competitiveness of Asia’s Newly Industrializing
Economies, August 1989
No. 14 The Japan Development Bank Reports on Capital Investment Spending: Survey for Fiscal Years 1988
and 1989 Conducted in February 1989, March 1989
No. 13 The Japan Development Bank Reports on Capital Spending: Survey for Fiscal Years 1987, 1988 and1989 Conducted in August 1988, September 1988
No. 12 Growing Foreign Investors’ Activities and the Future of Internationalization, September 1988
No. 11 Futures Tasks and Prospects for the Japanese Machine-Tool Industry, July 1988
No. 10 International Division of Labor in the Machine Industries Among Japan, Asia’s NICs and ASEANCountries, June 1988
No. 9

Trends of the Petrochemical Industry and its Marketplace in East Asia around Japan, May 1988

No. 8

The International Competitiveness of Japan and U.S. in High Technology Industries, April 1988

No. 7

The Japan Development Bank Reports on Private Fixed Investment in Japan, March 1988

No. 6

Economic Projections of the Japan’s Economy to the Year 2000, February 1988

No. 5

The Japan Development Bank Reports on Private Fixed Investment in Japan, September 1987

No. 4

Current Trends in the Japanese Auto Parts Industry in Overseas Production, July 1987

No. 3

Current Moves for Foreign Direct Investment into Japan, May 1987

No. 2

Overseas Direct Investments by Japanese Corporations, May 1987

No. 1

Current U.S. Consumption Trends, May 1987