Circular Economy Strategies in the Construction Industry for Enhancing Sustainability and Reducing Environmental Impacts

Abstract

The construction industry, recognized as one of the most complex economic sectors, is responsible for consuming half of the world’s raw materials and generating 25% of global solid waste. Relying on a linear alienation model characterized by take-make-dispose patterns, the industry faces resource scarcity crises and intensifying environmental damages. In contrast, the circular economy, defined as a regenerative industrial system designed to restore technical and biological cycles, has been introduced as the primary solution for achieving sustainability. Nevertheless, the construction sector remains in the nascent stages of adapting to this new paradigm. The problem statement is grounded in the fact that despite extensive scientific literature on the circular economy, most prior studies have focused on executive actions, technical techniques, and project-specific solutions. This micro-level approach fails to address policymakers’ needs for macro-level decision-making frameworks. The main research gap lies in the absence of a comprehensive strategic analysis that clearly differentiates policy, strategy, and action while examining their interrelationships, environmental impacts, and long-term strategic pathways in an integrated manner. This conceptual fragmentation has led to the implementation of isolated and unstable initiatives. The current research method is qualitative-analytical, based on a systematic review of scientific literature from reputable research databases and reports from international organizations. Data were collected and processed through qualitative content analysis, extracting and coding strategies. The rationale for selecting this topic is the necessity of bridging the gap between theoretical literature and practical policy needs to facilitate the industry’s transition from a linear to a circular economy. The results indicate that identifying and categorizing circular economy strategies, analyzing institutional barriers and implementation drivers, and explaining their effects on resource consumption and waste reduction are essential for improving sustainability indices. Finally, by developing a strategic conceptual framework, this study proposes priorities and long-term strategic pathways for industry managers and policymakers to operationalize the shift toward circular construction with an integrated and planned perspective.