Abstract:
The construction sector (CS) must make the switch from a linear to a Circular Economy (CE)
to reduce global impacts and preserve natural resources. Uncertainties caused by fluctuating
raw material prices, increasing demand, absence of proper waste infrastructure, and use of
wrong recycling technologies all lead to complexities. The CE concept is gaining popularity
among governments, academics, businesses, and individuals as a crucial step toward achieving
sustainable development as the latest research has urged for transformation in favor of a CE
built on sustainability. System dynamics (SD) offers an approach to address complexity using
tools, techniques, and simulation. Using content analysis, this research found 31 drivers in the
literature from a total of 35 research articles which leads us towards successful implementation
of Sustainable development in the CI of developing economies. A field study was further
conducted resulting in the shortlisting of ten CE drivers for sustainable development having a
50% impact. Further, a causal loop diagram (CLD) was developed which consisted of five
reinforcing and one balancing loop. In addition, CLD was utilized to construct an SD model
with the stocks "Organizational Incentive Schemes" and "Policy Support" in addition to a third
stock created under the name "Sustainable Development" to assess the system's overall impact.
The developed model was validated using boundary adequacy, structure, parametric
verification test, and extreme condition test which showed that it is logical and accurately
captures the system used in the industry. Nine case study building projects executed in Pakistan
were selected to check the implementation of CE principles. Further, a recommendation
framework was developed to target the weak areas. The outcomes are expected to assist in
resource conservation, employment generation, innovative development, economic growth,
competitiveness enhancement, raw material supply security, and environmental effect
mitigation.
