Policy framework for facilitating reverse logistics in circular construction: an integrated Fuzzy-DEMATEL and system dynamics approach

Circular economy (CE) provokes a rethink of construction supply chains by integrating reverse logistics (RL) to promote reuse and recycling of construction materials. However, the situation in construction is still lagging behind other sectors due to various barriers. Policy support plays an indispensable role in driving top-down momentum towards CE. While previous studies have explored the barriers to RL in construction, the interdependencies of these barriers and their relevance to CE policies have been largely overlooked. This study conducted an expert workshop to develop an overarching policy framework for RL development towards circular construction. A system dynamics (SD) model was developed using the Fuzzy-DEMATEL method to grasp the interrelationships between RL barriers and explore the potential of policy interventions for their mitigation. The proposed model comprised twenty-five barriers organised into six barrier factors. Results revealed that the lack of "knowledge and awareness", and "policy and regulation" were the root causes of other barriers. Establishing CE standards and guidelines is pivotal to shaping CE policies and easing the barriers. Current CE initiatives were driven by a soft voluntary policy approach, while the significance of hard mandatory regulations was undermined, which has slowed down the transition. A policy framework adopting a staggered approach was proposed for a strategic regulation control, starting with supportive polices and gradually advancing to stringent regulations over time. This will support policymakers in devising high-leverage policies. Future research will target a specific material supply chain to develop a framework of bespoke policy interventions to optimise its RL.