Economic and environmental assessment of a regional construction and building materials industry in Switzerland: An applied combination of material-flow analysis, life-cycle assessment and input-output analysis

Background: Sustainability is an aspect that has been lived and practiced for several centuries. It was not until the industrialization at the end of the 19th century and the development of the global south since the 1950s that the sustainable use of our natural resources has been forgotten and the environmental impact of our actions has continuously increased. Due to recurring natural disasters and the scarcity of natural resources, sustainability is once again coming to the fore and mobilizing the younger generation in particular. Problem: Due to the consumption of large amounts of natural resources, the generation of large amounts of waste and the greenhouse gases emitted by the production of cement, the construction and building materials industry has become a particular focus of sustainable development. There are many approaches to make the construction and building materials industry more sustainable through technological developments, but it requires a comprehensive rethinking in the industry and a corresponding concept to minimize the demand for natural resources and the associated environmental impacts. The circular economy (CE) is just such a concept, as it defines industry-wide strategies across the entire value chain with the unifying goal of replacing the construction industry’s previous linear principle – take, make, dispose – to increase resource and energy efficiency and minimize environmental impact. However, as the implementation of a CE is very complex and faces various barriers, we need on the one hand a better understanding of the current economic structure and on the other hand an understanding of the potential impacts of a CE, especially on a regional basis. Objective: The present work aims to sharpen this understanding and to develop a practical tool with which a regional construction and building materials industry can be assessed. The data then serves as a basis for decision-making for companies and public administrations implementing CE-principles. Methodology: We use the already established methods of Material-Flow Analysis, Life-Cycle Assessment, and Input-Output Analysis, of which on the one hand the scientific basics are very well known and comprehensible even for non-experts, and on the other hand the individual methods are already established and widely used in different industries. We clarify the question of how these methods can be linked to enable a regional view of an industry in the context of the CE. Furthermore, we show which indicators should be used for environmental as well as economic considerations and how we can measure circularity in an industry. Results: Using the proposed model, we were able to identify hotspots in the mineral building materials value chain that have a significant impact on a CE and where policies have the most influence. For example, most policies focus on waste management (e.g., prevention of waste to landfill), but policies focusing on construction processes (e.g., procurement) would be useful, as this is where the greatest financial, as well as material leverage, can be expected. Furthermore, we were able to formulate initial findings on how companies can respond to the transition to a CE with business model innovations. In addition, we identified regional barriers to the implementation of a CE and formulated initial recommendations on how policymakers can respond to these barriers. Conclusion: The present work has developed a new model that provides new interpretive tools for evaluating a regional industry in the context of a CE and provides baseline data for effective formulations of business decisions and policy actions. All in all, we make an important contribution to the understanding of a regional CE with the presented methodology and initial conclusions.