Unlocking a decarbonized future: Institutional barriers and governance innovations in China's circular economy transition for the built environment

Abstract

China's deep decarbonization of the built environment is hindered by institutional lock-ins in the circular economy transition. Applying Scott's three pillars of institutions and using document analysis, semi-structured interviews, and comparative case studies, this research diagnoses how fragmented regulations, cost-driven industry norms, and cognitive biases mutually reinforce stagnation. Successful projects demonstrate that alignment across pillars enables circular practices, while failures stem from misalignment. To break institutional lock-ins, governance innovations must shift green standards from voluntary to mandatory, embed circularity into financial and performance metrics, and establish multi-stakeholder platforms. These findings contribute a dynamic institutional explanation and contextualize transition barriers within China's strong state–strong market configuration, offering pathways for coordinated policy, market, and cultural change toward a low-carbon circular built environment.