Investigation of Drivers Towards Adoption of Circular Economy: A DEMATEL Approach

Abstract

The increased population, scarcity of resources and environmental consciousness put the tremendous stress on the organisations to fulfil the demand in sustainable way. The current linear model is based on the take-make-use-destroy model, which has many limitations in terms of resource utilisation and environmental impact. To overcome such limitation, circular economy is proposed. The main aim of circular economy is to create a circular system that maximises the resource value and enhances the material and product. However, the adoption of the circular economy is challenging and required some essential/motivational factor. This study is identifying the ten major drivers towards the adoption of circular economy. Further, these drivers are categorised into two groups utilising the decision-making trial and evaluation laboratory (DEMATEL). The result of this study explored that most influential drivers are ‘government policies for cleaner production’ and ‘urbanisation’, while ‘enhanced material and energy efficiency’ and ‘improving product quality’ are the most influenced. This study can support the policy makers to develop the strategies in the adoption of circular economy.