Enabling a circular economy in the built environment

The amount of waste generated by the construction sector underscores an urgent need for embracing circularity — a sustainable model that aims to minimize waste and maximize material efficiency through recovery and reuse — in the built environment: 600 million tons of construction and demolition waste was produced in the United States alone in 2018, with 820 million tons reported in the European Union, and an excess of 2 billion tons annually in China.

This significant resource loss embedded in our current industrial ecosystem marks a linear economy that operates on a “take-make-dispose” model of construction; in contrast, the “make-use-reuse” approach of a circular economy offers an important opportunity to reduce environmental impacts.

A team of MIT researchers has begun to assess what may be needed to spur widespread circular transition within the built environment in a new open-access study that aims to understand stakeholders’ current perceptions of circularity and quantify their willingness to pay.

“This paper acts as an initial endeavor into understanding what the industry may be motivated by, and how integration of stakeholder motivations could lead to greater adoption,” says lead author Juliana Berglund-Brown, PhD student in the Department of Architecture at MIT.

Despite growing awareness of reuse practice among construction industry stakeholders, circular practices have yet to be implemented at scale — attributable to many factors that influence the intersection of construction needs with government regulations and the economic interests of real estate developers.

The study notes that perceived barriers to circular adoption differ based on industry role, with lack of both client interest and standardized structural assessment methods identified as the primary concern of design and construction teams, while the largest deterrents for material suppliers are logistics complexity, and supply uncertainty. Real estate developers, on the other hand, are chiefly concerned with higher costs and structural assessment.

Yet encouragingly, respondents expressed willingness to absorb higher costs, with developers indicating readiness to pay an average of 9.6 percent higher construction costs for a minimum 52.9 percent reduction in embodied carbon — and all stakeholders highly favor the potential of incentives like tax exemptions to aid with cost premiums.

Next steps to encourage circularity

The findings highlight the need for further conversation between design teams and developers, as well as for additional exploration into potential solutions to practical challenges.

When it comes to motivating reasons to adopt circularity practices, the study also found trends emerging by industry role. Future net-zero goals influence developers as well as design and construction teams, with government regulation the third-most frequently named reason across all respondent types.

The study also identifies other challenges to the implementation of circularity at scale, including risk associated with how to reuse materials in new buildings, and disrupting status quo design practices.