# Hurdles to a Circular Built Environment: A Look at the Economic and Market Barriers
## 1 Introduction
When examining the development of theories reflected in the literature, it is most often mentioned that \"Market barriers\" are most often attributed to competitive product prices, exaggeratedly high investment costs, or insufficient compensation for social and environmental benefits, hence small or non-existent profit margins, which prevent companies from successfully transitioning to new markets, including the introduction of a circular economy. The elimination of market barriers will also solve organisational and cultural problems as obstacles [9]. Regulatory frameworks and policy incentives play a critical role in enabling or obstructing the CBE. Policymakers face challenges in harmonising legislation across regions, often resulting in fragmented market conditions that discourage innovation. Stakeholders, including architects, contractors, and municipalities, cite the lack of standardised criteria for circular materials and unclear financial incentives as barriers. Moreover, the absence of robust digital tools to track material lifecycles exacerbates inefficiencies in the transition. Strengthening regulatory incentives and fostering public-private partnerships can catalyse systemic changes, as highlighted by the Circular Cities and Regions Initiative [10]. Various studies have considered the barriers to a CBE. [PERSON] [11] considered the barriers to material reuse in the construction industry in Norway. She found that the time to demolish buildings in a manner to recover materials was a barrier, along with the lack of documentation of these resources. She also noted that not knowing what materials will be available in the future limits the designers' decision-making processes. She also cited a lack of professionals with the right skills as a market barrier. [PERSON] and [PERSON] [12] considered how a circular economy could be facilitated in the built environment. They point out that there is a lack of infrastructure for processing and storing materials and systems, which leads to a lack of materials that meet circular economy principles. The available resources also often lack the certification and product information required by designers. They also raised the issue of approval by insurance bodies and how the current procurement method hinders a circular economy. However, they envisage that the digitisation of buildings and the use of that information by the demolition/refurbishment industry will stimulate the market and provide the relevant information and certification needed for the reuse of materials. [PERSON] et al. [13] considered barriers to CE in the built environment in both developed and developing countries. They point out that the costs of information technology and the development of secondary markets may be barriers to the adoption of a circular economy. They also noted that the perception that circular materials were inferior also acted as a market barrier. Their survey highlighted that the cheaper cost of virgin material was a significant market barrier for circular materials. They also found that market barriers were more prevalent in developing countries. [PERSON] et al. [14] identified 12 barriers that they considered related to the market, including labour supply, lack of synchronisation, perceived risks, lack of innovation capacity, past technological failures and a lack of external stakeholder involvement. They used a Fuzzy Delphi Method to analyse the results of their survey of 30 individuals with a minimum of five years of experience. The skills barrier was identified as a significant market barrier. [PERSON] et al. [15] advocated that the simplification of design processes, manufacturing, retrofitting and renovation to incorporate circular economy principles and practices was required, and again, data and building information were seen as key in overcoming market barriers.