Investigating business models for circular economy integration in construction sector

Abstract

The growing disparities between the demand and finite resources within the construction section, contribute to market volatility and environmental degradation. The linear business is currently being predominantly employed, which escalates the construction and demolition waste. Unsustainable practices come into play with the take, make, dispose method and pressure the existing resources. In contrast, circular business models advocate for a closed-loop approach, and newer business opportunities with a new and evolving stream of market. The paper investigates the application of circular economy Business model, which can act as a mould for the construction industry. A systematic study of the aspects of CE, which are regulatory and economic difficulties, barriers, innovations, impact on the environment and society, is carried out. The research examines business models for reuse and recycling, and the current demolition waste management. Established data is studied to understand the trends, and variables in the business models. According to this study, despite the economic and environmental benefits of circular business models, there are barriers to implementing them due to factors such as high cost, undeveloped markets, and regulatory restrictions.