A Systematic Review of Implementing Multi-Criteria Decision-Making (MCDM) Approaches for the Circular Economy and Cost Assessment

Ali Tighnavard Balasbaneh (), Silvio Aldrovandi and Willy Sher
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Ali Tighnavard Balasbaneh: LSBU Business School, London South Bank University, 103 Borough Road, London SE1 0AA, UK
Silvio Aldrovandi: LSBU Business School, London South Bank University, 103 Borough Road, London SE1 0AA, UK
Willy Sher: School of Architecture and Built Environment, College of Engineering, Science and Environment, The University of Newcastle (UON), University Drive, Callaghan, NSW 2308, Australia

Sustainability, 2025, vol. 17, issue 11, 1-24

Abstract: This study advances circular economy initiatives by advocating for the use of Multi-Criteria Decision-Making (MCDM). MCDM methods address the complex multi-faceted aspects of a product or process. They enable conflicting calculations of energy, cost, environmental criteria, and payback periods to be balanced. A systematic critical systematic review and bibliometric analysis were conducted to investigate the contribution of MCDM to the circular economy. The Scopus database was the primary data source reviewed. The geographical distribution, main research sources, and keyword co-occurrences were analyzed across 31 peer-reviewed book chapters, conference papers, and journal articles. The journal Sustainability (Switzerland) had the most publications (4), followed by the Journal of Business Strategy and the Environment and the Journal of Cleaner Production, each with two articles. Recently MCDM has gained popularity as a tool for evaluating the circular economy. This growing interest may be attributed to the complexity of the circular economy, as MCDM effectively balances multiple environmental criteria while integrating evaluations of economic cost and social impact. Criteria are incommensurable as each criterion has a distinct unit of measurement, making it impossible to compare outcomes across different indicators. MCDM is thus an ideal technique for assessing different options by integrating criteria within testable frameworks. However, no established patterns for selecting specific MCDM methods were identified. This is despite some options (e.g., combinations of AHP and TOPSIS) being used more frequently than others. In conclusion, all the studies identified financial factors as the most significant or highly sensitive issue in the transition toward a circular economy.

Keywords: economic evaluation; cost; circular economy; multi-criteria decision-making; MCDM; bibliometric analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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