Assessing Financial Considerations of Circular Economy Practices Across Life Cycle Stages in the Construction Industry
The construction industry generates substantial waste, yet circular economy (CE) adoption remains sporadic despite EU regulatory pressure. Financial uncertainty and fragmented guidance keep firms hesitant. This study examines how construction stakeholders perceive CE’s financial costs and benefits across the building lifecycle. In total, 125 construction professionals participated, including 87 respondents who evaluated lifecycle-based costs and benefits and 38 Norwegian respondents who provided qualitative accounts of CE implementation cases. The combined analysis reveals that sectoral resistance stems primarily from financial concerns, underscoring the need for clearer cost–benefit expectations and regulatory incentives that make circularity economically viable. Three enablers emerge as critical: enhanced digital tools, policy innovation, and multi-stakeholder collaboration. The study contributes by empirically demonstrating how regulatory frameworks shape CE adoption through the integration of quantitative perceptions and qualitative case evidence. The implication is that targeted interventions addressing practitioners’ financial realities can accelerate the circular transition, but policies must move beyond aspiration to provide the economic certainty required for widespread adoption.
Authors
- Ferhat Karaca (ORCID: https://orcid.org/0000-0002-9604-9348)
- Giancarlo Paganin
- Ivana Kildsgaard
- Aidana Tleuken (ORCID: https://orcid.org/0000-0001-7217-354X)
- Thomas Laudal (ORCID: https://orcid.org/0000-0003-4015-8876)
- D Bajare
- Ali Turkyilmaz
Institutions
- Riga Technical University (LV)
- Sustainability Institute (ZA)
- Nazarbayev University (KZ)
- University of Stavanger (NO)
- Politecnico di Milano (IT)
- University of Twente (NL)
Publication Details
- Journal
- Circular Economy and Sustainability
- Published
- 2026-03-02
- DOI
- https://doi.org/10.1007/s43615-026-00727-3
- Primary Topic
- Sustainable Supply Chain Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Nazarbayev University