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Article · Circular Economy and Sustainability · March 2, 2026

Assessing Financial Considerations of Circular Economy Practices Across Life Cycle Stages in the Construction Industry

Aidana Tleuken, Ali Turkyilmaz, Thomas Laudal, Ivana Kildsgaard, Giancarlo Paganin, Diāna Bajāre

Aidana Tleuken
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Abstract

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.

Sustainable Supply Chain ManagementSustainable Building Design and AssessmentLife Cycle Costing Analysiscircular economyconstruction industrybuilding life cycle

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