Stakeholders’ perceptions of and willingness to pay for circular economy in the construction sector

Abstract

Adopting Circular Economy practices in the construction industry can help reduce greenhouse gas emissions. However, many barriers exist to adoption, and current perceptions of and willingness to pay for circularity have yet to be quantified. This study seeks to understand the various perceptions of circularity in the construction industry, characterize uncertainties and risks, and identify economic incentives and opportunities that could accelerate circular adoption via an industry survey of three stakeholder groups. 58 stakeholders filled out part of the survey, and 42 stakeholders completed the majority of questions. Real estate developers are willing to pay an average premium of 10% for construction costs if there’s a minimum embodied carbon reduction of 53%. Design and construction professionals and material suppliers were also surveyed. Reasons for adopting circular practices were primarily driven by client, design team, and net zero goals. The results of this survey begin to characterize the economic landscape of what is needed for a circular transition in the built environment.