**2.1 Economic growth**

An important principle of the circular economy is that economic growth must be separated from the use of raw materials. As a result, the economy is not hampered by a lack of raw materials for growth. The transition to a circular economy is expected to accelerate economic growth. The United Nations Environment Program (UNEP) [20] estimates that by 2050, the global economy will benefit from about \$2 trillion

### **Figure 5.** *Circular economy and sustainable development [19].*

### *Circular Economy - Recent Advances in Sustainable Construction Waste Management DOI: http://dx.doi.org/10.5772/intechopen.105050*

a year and more resource efficiency. In a circular economy, this growth is bound to happen. On the one hand, by increasing revenue from new circular operations, and on the other hand - by creating more functions on the same number of materials and production capacity. The development, production, and maintenance of these circular products require a special workforce that expands these jobs. On the other hand, the need for extraction and processing of raw materials decreases, which reduces the amount of less specialized work [21]. This increases labor costs, which is good for job opportunities and gross national product (GNP).

### *2.1.1 Growth in employment*

In a circular economy, labor is valued more than raw materials. As a result, employment is rising. These jobs go back to a time- and quality-intensive patchwork; Employment in logistics through the recycling of local products; new businesses through innovation, the service economy, and new business models.

### *2.1.2 Innovation growth*

The circular economy is a challenge for innovative solutions based on a new way of thinking. This means thinking about circular instead of linear value chains and trying to optimize the whole system. This leads to new ideas, interdisciplinary collaboration between designers, manufacturers, and processors, and thus to environmental innovation.

### *2.1.3 Demand change*

The final key factor in the economic benefits of a circular economy is a better understanding of the shift and demand side. Since companies deal with their customers and their role throughout their lives, this ultimately leads to less resource use, less waste production, and production change.

The construction industry is the highest storage of materials and waste in the economy. The large city of Amsterdam alone processes 1.4 million tons of mining material every year, with a value of up to €688 million. At the same time, the production of new building materials has a significant impact on the environment. Thanks to the high-quality processing, foldable and modular design, this value can be capitalized on and protect the environment. According to Kaza et al. [5], in a report published by The World Bank Group, the global per capita per day of waste generation is 1.68 kg. Additionally, the global C & D market will also expand at a compound average growth rate of 5.30% between 2021 and 2026 with a market value of about \$34.40 billion as shown in **Figure 6**.

The benefits of a circular economy create opportunities for businesses. This creates new profit opportunities, a more stable supply of materials, increasing demand for a range of services, and stronger relationships with customers. In the transition to a circular economy, companies are reducing material costs and creating entirely new, profitable markets. Raw materials are expensive in many industries. The extraction of new raw materials and the uncertainty of their supply in the linear economy increase the price of these materials. Revenues can, for example, offer new profit opportunities through lower costs, greater security of raw material supply, closer supply chain collaboration, and stronger supply chains. The circular economy ensures that a company uses less raw materials and more recycled raw materials and maximizes the

### **Figure 6.** *Average C & D waste generation [5].*

value of these raw materials throughout its life cycle. As a result, the entrepreneur has relatively fewer material costs than labor costs, so the price and availability of materials have less impact on the stability of the business model. With greater stability, a firm can make more profitable and targeted long-term investments. The circular economy offers new business models and opportunities to retain customers. The transition from product delivery to services, leasing, and leasing models creates a long-term relationship between the buyer and the supplier, as more relationships are established over the life of the product. If the supplier remains responsible for the product delivered, intermediate service, maintenance, repair, and good communication can lead not only to customer satisfaction but also to customer loyalty, ensuring that the customer repurchases products after the end of the contract.
