Drivers of consumer preferences and willingness to pay for circular buildings in urban Ghana

Abstract The global construction sector is under pressure to adopt circular economy principles; however, consumer demand for circular buildings in developing economies remains poorly understood. This study examines the drivers of consumer preferences and willingness to pay (WTP) for circular buildings in urban Ghana to address this gap. This study integrates the Theory of Planned Behaviour and Value-Belief-Norm frameworks to analyse consumer demand in sub-Saharan Africa, providing insights into aligning market supply with consumer expectations for sustainable urbanization. A cross-sectional survey of 200 respondents across four major cities was conducted using factor analysis and regression models to identify latent drivers and barriers, and thematic coding was used to supplement the quantitative findings. The findings revealed that energy efficiency and adaptability are the top priorities for Ghanaian consumers, reflecting the cultural context of multigenerational households. In contrast, distrust in certification and material reuse are significant barriers. Consumer awareness of circular construction was the only significant predictor of WTP, whereas preferences and barriers showed no effects. This aligns with the evidence that knowledge predicts environmental investment willingness. The WTP was highest for eco-communities and natural materials, with modest premiums overall. A key contribution of this study is the finding that Ghanaian consumers perceive circularity holistically, in contrast to the fragmented perceptions in high-income countries. This study recommends market interventions prioritising adaptability and efficiency, with government certification to rebuild trust. Consumer awareness through literacy programmes is key to WTP. The findings help align policies to scale circular construction in Ghana and other similar economies.