Circular economy readiness in Jordan's construction sector expert evidence and structural modeling from a resource economics perspective
Abstract
Given the construction sector's heavy use of raw materials and its large quantities of construction and demolition (C&D) waste, it plays a key role in moving toward a circular economy (CE). From an environmental economics perspective, CE in construction is directly linked to resource productivity, mitigation of externalities from C&D waste, and reduced dependence on imported materials, especially in resource-constrained economies. Although a recent study in Jordan links CE practices and organizational capabilities with sustainability and resilience in the private sector and SMEs, CE preparedness in construction has not been assessed. This paper addresses that gap using expert testimony and a structural assessment of CE readiness in Jordanian construction. Drawing on international CE-in-construction literature and Jordanian CE models, we designed a survey on current CE practices, design-stage integration, C&D waste management, drivers, barriers, internal capabilities, policy/public procurement support, and future CE prospects, and obtained responses from 150 experts. Confirmatory factor analysis and structural equation modeling were used to identify latent variables for CE implementation, internal capabilities, and CE outlook, along with observed drivers, barriers, and policy/procurement support. The best-fitting model, in which perceived drivers also support internal capabilities, showed excellent fit (χ 2 (28) = 36.28, p = 0.136; CFI = 0.989; TLI = 0.984; RMSEA = 0.044; SRMR = 0.029). CE implementation is positively influenced by drivers (β = 0.342, p < 0.001) and internal capabilities (β = 0.356, p < 0.001), negatively by barriers (β = −0.318, p < 0.001), and modestly by policy/procurement support (β = 0.125, p = 0.036). Drivers also predict internal capabilities (β = 0.238, p = 0.008), and CE implementation strongly predicts experts' future outlook. These findings highlight priority economic levers—capability-building, targeted policy and procurement instruments, and barrier removal—for improving resource efficiency and internalizing C&D-waste externalities. In a resource-constrained context such as Jordan, strengthening these levers can support progress toward SDGs related to sustainable production, infrastructure, and inclusive economic growth in the construction sector.