A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry
The circular economy is high on the political agenda as a solution to minimize raw material use and carbon footprints across socio-economic systems. Each country must follow its path to achieving circularity, and businesses must seek new types of sustainable and circular business models. This study...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-06-01
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| Series: | Cleaner Environmental Systems |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666789425000224 |
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| author | Agusta Thora Jonsdottir Lara Johannsdottir Brynhildur Davidsdottir |
| author_facet | Agusta Thora Jonsdottir Lara Johannsdottir Brynhildur Davidsdottir |
| author_sort | Agusta Thora Jonsdottir |
| collection | DOAJ |
| description | The circular economy is high on the political agenda as a solution to minimize raw material use and carbon footprints across socio-economic systems. Each country must follow its path to achieving circularity, and businesses must seek new types of sustainable and circular business models. This study aims to analyze the Icelandic building industry as a case study from a systems perspective to identify the systemic forces influencing the adoption of circular business models. The study formulates dynamic hypotheses regarding implementing circular strategies, represented as causal loop diagrams (CLDs). Following qualitative methods, including semi-structured interviews and group model building. The dynamic hypotheses proposed to explain the system's internal behavior that drives its dynamic around four critical problems: 1) Lack of the snowballing effect. 2) Lack of regulatory policies for improving environmental performance. 3) Lack of public demand for implementing circular strategies. And 4) A conservative culture within the industry. The study identifies a gap in the literature by highlighting the need to examine the dynamics between barriers in implementing circular strategies during the transition toward a circular economy rather than analyzing them in isolation. Its theoretical contribution lies in advancing the understanding of complex dynamics, enriching transition theory as it applies to circular economy transition. This approach also reinforces the business case for sustainability while aligning with stakeholder theory, offering a more holistic perspective on enabling systemic change. The study provides business leaders and policymakers with an analysis identifying actionable recommendations for regulatory reforms, supporting the transition toward a circular economy. |
| format | Article |
| id | doaj-art-658e9185c0574df98d6ebf5181ec3b49 |
| institution | Kabale University |
| issn | 2666-7894 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Cleaner Environmental Systems |
| spelling | doaj-art-658e9185c0574df98d6ebf5181ec3b492025-08-20T03:53:52ZengElsevierCleaner Environmental Systems2666-78942025-06-011710027610.1016/j.cesys.2025.100276A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industryAgusta Thora Jonsdottir0Lara Johannsdottir1Brynhildur Davidsdottir2Environment and Natural Resources, Faculty of Business Administration, University of Iceland, Gimli, Saemundargata 2, 101, Reykjavík, Iceland; Corresponding author.Environment and Natural Resources, Faculty of Business Administration, University of Iceland, Gimli, Saemundargata 2, 101, Reykjavík, IcelandEnvironment and Natural Resources, Faculty of Economics and Faculty of Life and Environmental Sciences, University of Iceland, Gimli, Saemundargata 2, 101, Reykjavík, IcelandThe circular economy is high on the political agenda as a solution to minimize raw material use and carbon footprints across socio-economic systems. Each country must follow its path to achieving circularity, and businesses must seek new types of sustainable and circular business models. This study aims to analyze the Icelandic building industry as a case study from a systems perspective to identify the systemic forces influencing the adoption of circular business models. The study formulates dynamic hypotheses regarding implementing circular strategies, represented as causal loop diagrams (CLDs). Following qualitative methods, including semi-structured interviews and group model building. The dynamic hypotheses proposed to explain the system's internal behavior that drives its dynamic around four critical problems: 1) Lack of the snowballing effect. 2) Lack of regulatory policies for improving environmental performance. 3) Lack of public demand for implementing circular strategies. And 4) A conservative culture within the industry. The study identifies a gap in the literature by highlighting the need to examine the dynamics between barriers in implementing circular strategies during the transition toward a circular economy rather than analyzing them in isolation. Its theoretical contribution lies in advancing the understanding of complex dynamics, enriching transition theory as it applies to circular economy transition. This approach also reinforces the business case for sustainability while aligning with stakeholder theory, offering a more holistic perspective on enabling systemic change. The study provides business leaders and policymakers with an analysis identifying actionable recommendations for regulatory reforms, supporting the transition toward a circular economy.http://www.sciencedirect.com/science/article/pii/S2666789425000224Circular economyTransitionCausal loop diagramBuilding industryStakeholderBusiness model |
| spellingShingle | Agusta Thora Jonsdottir Lara Johannsdottir Brynhildur Davidsdottir A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry Cleaner Environmental Systems Circular economy Transition Causal loop diagram Building industry Stakeholder Business model |
| title | A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry |
| title_full | A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry |
| title_fullStr | A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry |
| title_full_unstemmed | A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry |
| title_short | A systems approach to circular economy transition: Creating causal loop diagrams for the Icelandic building industry |
| title_sort | systems approach to circular economy transition creating causal loop diagrams for the icelandic building industry |
| topic | Circular economy Transition Causal loop diagram Building industry Stakeholder Business model |
| url | http://www.sciencedirect.com/science/article/pii/S2666789425000224 |
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