Circular Economy in Construction: Decision-Making Factors and Future Research Avenues

Abstract

The construction sector is a major consumer of raw materials and a significant contributor to environmental degradation. Circular economy (CE)—an economic and systemic approach aimed at minimizing waste and fostering sustainable resource use—offers a remedy for these impacts. However, CE adoption in construction remains under-researched and limited. Accordingly, there is a need to provide a comprehensive understanding of CE decision-making factors in construction. This paper addresses this research need. First, the authors reviewed 138 journal articles on CE in construction, published between 2015 and 2023, and compiled a comprehensive list of 40 factors influencing CE decision-making. Second, graph theory was employed to evaluate the scientific attention given to the identified factors by calculating degree centrality (DC) metrics. Last, k-means clustering was applied to group the identified factors, considering the comprehensive discussions found in the literature. The graph theory results reveal a strong emphasis on factors related to waste management and recycling, with normalized DC scores of 0.86 and 1 (on a scale of 0 to 1) under theoretical and quantitative investigations, respectively. Conversely, factors related to project lifecycle management, stakeholder engagement, and social responsibility have received significantly less attention, with normalized DC values ranging from 0 to 0.51 under quantitative investigations. These findings are reinforced by the clustering results, which highlight a consistent trend in the literature to collectively and theoretically emphasize factors related to project lifecycle management, collaboration and partnerships, and regulations and policies, with a notable absence of quantitative examinations. Consequently, this study highlights understudied CE decision-making factors, offering a valuable roadmap for future research. Thus, this study contributes to the body of knowledge by promoting a comprehensive understanding of CE-related decision-making factors in construction and outlining pathways to address understudied areas. Ultimately, this will support improved decision-making aimed at enhancing circularity in construction.