Circular economy and decarbonization in construction: Evidence from life cycle costing in Italy

Federica Carla Carollo, Francesca Ceruti and Lucia Rigamonti

ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, 2026, vol. 2026/1, issue 1, 201-226

Abstract:

Purpose. The purpose of this work is to answer whether selective demolition is economically viable, as well as to highlight the limitations of the construction and demolition (C&D) waste management chain in Italy and make recommendations to overcome them.

Methods . An environmental Life Cycle Costing analysis is conducted to assess the costs of selective demolition and manufacturing recycled aggregates in the Lombardy Region (Northern Italy). The investigated system encompasses all management phases of inert waste originating from demolition activities, from its generation at the building end-of-life to the treatment phase in a recycling plant, till the market replacement as recycled aggregate.

Results and discussion . The economic inventory relating to 7 case studies shows that the average cost for demolition and C&D waste management is ? 7.04 per m 3 of a demolished building. When a considerable proportion of metal waste stream is sold, this cost is minimised.

Conclusion . Following the results, it is possible to identify the criticalities of the C&D waste management chain and how to overcome them to close the loop in the construction sector. Future research should focus on expanding the market for high-quality recycled aggregates by encouraging their sale and usage in new buildings.

Keywords: Life Cycle Costing (LCC); selective demolition; construction and demolition waste; recycled aggregates; economic impact (search for similar items in EconPapers)
Date: 2026
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