Applying circular business models in the Chilean construction sector: A system dynamics perspective

Karina D. Véliz, Claudia Pabón‐Pereira, Jeffrey P. Walters and Javiera Fernandez

Business Strategy and the Environment, 2025, vol. 34, issue 1, 1302-1319

Abstract: The construction sector remains a significant contributor to global climate change, accounting for one‐third of global greenhouse gas emissions as well as a substantial portion of solid waste. In response to this pressing crisis, the adoption of circular business models (CBMs) emerges as a way to avoid negative environmental impacts. This study sought to model the interconnected factors influencing future CBM implementation in the Chilean construction industry using a system dynamics modeling approach. By engaging 20 sector experts in a system modeling workshop, it was possible to model and analyze these interconnected factors as a CBM System. The structural analysis of the resulting CBM system model revealed the triumvirate importance of information dissemination, certification of projects and products, and professional training and education. Recommendations for policy and practice that successfully leverage these mechanisms center on a three‐pronged approach of combining effective stakeholder collaboration, technological innovation, and thoughtful product certification frameworks. Overall, a systems thinking and modeling approach, such as the one applied here, is essential for identifying the complex interactions between enablers and barriers that promote or inhibit sustainable transformation in the construction industry in Chile and beyond.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:1:p:1302-1319

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