A nexus of barriers and strategies for circular economy implementation in the construction industry: A structural equation modeling approach

Abstract

The construction industry's significant environmental footprint, consuming 40% of global raw materials and generating 33% of greenhouse gas emissions, necessitates an urgent transition from linear to circular economy (CE) models. While previous research has identified individual barriers and strategies for CE implementation, the quantitative relationship between these constructs remains unexplored. This study addresses this gap by developing and validating a framework linking CE barriers to implementation strategies in Ghana's construction industry using Partial Least Squares Structural Equation Modeling (PLS-SEM). Through a systematic literature review, 21 barriers were categorized into four constructs: market policy and technology-related, legal and institutional, supply chain-related, and product design and waste management barriers. A structured questionnaire survey of construction professionals in Ghana validated the measurement model and tested the hypothesized barrier-strategy relationship. Results demonstrate a strong positive relationship (β = 0.731, p < 0.05) between CE barriers and strategies, with barriers explaining 53.5% of variance in strategy adoption. Market policy and technology-related barriers emerged as most influential (β = 0.482), followed by legal and institutional barriers (β = 0.352). Eight critical strategies were identified for CE implementation, including enhanced building waste management regulations, stakeholder education, and national action plan development. The validated framework provides evidence-based insights for policymakers and practitioners in Ghana to develop targeted interventions that address CE barriers while promoting effective CE strategies in the building sector. • Empirical study linking circular economy (CE) barriers to implementation strategies. • PLS-SEM reveals strong relationship (β = 0.731) between CE barriers and strategies. • Market and technology barriers emerge as the most influential implementation factors. • Framework identifies 8 critical strategies for the construction industry CE adoption. • Evidence-based insights for sustainable building practices and policy development.