Closing the loop in the construction industry: A systematic literature review on the development of circular economy

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Construction organisations and governments need to seek a sustainable solution to optimise resource consumption, minimise energy use, and reduce glasshouse gas emissions caused by construction operations as the building stock grows. The circular economy (CE) has become a promising option for these organisations and policymakers in many countries owing to its ability to close material loops throughout the building lifecycle. Despite its importance, the application of CE throughout construction is limited, and its applicability to different aspects of construction remains under-researched. The purpose of this research is to discover all applicable viewpoints on CE in the construction industry that narrow or close material loops. To investigate the development of circularity in construction, a systematic literature review following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method was performed by integrating a bibliometric analysis. 78 articles were rigorously selected to conduct the critical content analysis to classify the extant CE literature. This study classified the extant CE literature into eight themes: 1) circular business models; 2) R principles; 3) construction and demolition waste; 4) the economic effect of CE; 5) greenhouse gas emissions; 6) the role of digital technological tools; 7) offsite construction; and 8) life cycle assessment. Based on the critical content analysis, theoretical interrelationships between the themes were identified, along with future research avenues. Findings highlighted the significance of (1) encouraging the use of recycled materials by enhancing economies of scale; (2) the need for regulatory bodies and construction businesses to step in to achieve circularity in construction; (3) the impact of supply chain complexities in minimising carbon emissions; and (4) the necessity of investing in training for the construction industry. Further research is needed to determine the impact of greenhouse gas emissions and the application of digital technologies in order to fully realise the benefits of CE adoption. An all-inclusive CE adoption across the entire building life cycle, taking into account diverse perspectives, could contribute to closing the resource loops in construction.