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American Journal of  Environmental
Economics (AJEE) 

Adoption of  Circular Economy Developed: A Comparative Analysis between Developed 
and Developing Countries for Sustainable Waste Management

Rubayea Sharmin1, Kaosar Ali2, Mohammad Rezaul Karim3, Shuvo Kumar Mallik4*

Volume 4 Issue 1, Year 2025
ISSN: 2833-7905 (Online)

DOI: https://doi.org/10.54536/ajee.v4i1.5384
https://journals.e-palli.com/home/index.php/ajee

Article Information ABSTRACT

Received: May 13, 2025

Accepted: June 18, 2025

Published: July 24, 2025

Due to the rapid pace of  industrialization worldwide, a considerable amount of  waste has 
accumulated, which tends to compromise the sustainability of  the environment and the 
availability of  resources for future generations. As a countermeasure, the linear economy 
to a circular economy (CE) transition has evolved into an essential means for realizing 
sustainable development. We compared developed and developing countries’ readiness to 
embrace the circular economy principles, particularly on sustainable waste management. 
Adopting a systematic review methodology, the study analyzed 70 relevant academic papers 
published on CE implementation in different industries and regions, particularly in developed 
economies, including Australia. The year of  publication, research methodology, geographical 
contexts, and industrial applications were considered in the analysis. These results show that 
developed countries have made clear advances in Circularity in waste management, supported 
by mature policy frameworks, technological advances and multi-stakeholder contributions. On 
the other hand, in many developing countries, the adoption of  CE practices is poor, owing 
to policy inadequacies, resource scarcity, and limited stakeholder involvement. This study’s 
findings suggest that developing countries could gain from CE implementation through 
targeted approaches encompassing the government, the industry, and communities. The 
paper ends with policy suggestions and collaborative strategies to promote the integration of  
a circular economy for sustainable waste management in developed and developing country 
settings.

Keywords

Circular Economy, Developed 
Countries, Waste Management

1 Department of  Development Studies, Bangladesh University of  Professionals, Dhaka, Bangladesh
2 Department of  Environment Science and Management, Bangladesh University of  Professionals, Dhaka, Bangladesh
3 Department of  Business Administration, Shanto-Mariam University of  Creative Technology, Dhaka, Bangladesh
4 Department of  Economics, Southeast University, Dhaka, Bangladesh
* Corresponding author’s e-mail: nextgenresearch.info@gmail.com

INTRODUCTION
Waste production is a challenge, especially for developing 
and developed nations in the world. The advent of  
consumer society, the age of  rapid industrialization 
since the Industrial Revolution, has led to an increase in 
waste amounts due to increasing consumption (Sellappa, 
2025). Combined with rapid population growth, 
global resource demand is still growing, putting stress 
on natural ecosystems and leading to extensive ecological 
deterioration.
Three The waste generated from industrial, agricultural, 
commercial, municipal and domestic sources has 
become critical problems such as land degradation, 
water pollution and ocean plastic buildup (Rajendran 
et al., 2025). Submission This extraction rate is entirely 
unsustainable and is predominantly coming from the old 
linear economic model where we take, make and dispose 
of. This ‘cradle to grave’ model has resulted in far-reaching 
implications for both ecological sustainability and 
human health, as well as the sustainable supply of  critical 
resources.
The linear economy has been seen as a driving force 
behind economic development and material affluence, 
especially in industrialized countries through the 20th 
century. But those limits have been exposed ever more 
glaringly in the twenty-first century, with widespread 
calls for systemic change. As a cornerstone of  securing 

resources for the long term, safeguarding the environment 
and maintaining the economic position of  generations to 
come, a change to a circular economy (CE) framework is 
imperative (Ali et al., 2025).
The circular economy advocates for the perpetual use and 
replenishment of  resources by enabling design which 
prioritizes reuse, recycling, remanufacturing and waste 
reduction. This is an economically viable and sustainable 
alternative to the linear model that disconnects economic 
growth from resource depletion and environmental 
degradation (Requena-i-Mora et al., 2025). So, the concept 
of  the CE model has now been widely accepted around 
the world, particularly by the government, academics 
and international organizations like the United Nations.
Although many industrialized countries, including 
Australia and other OECD members, have made an explicit 
effort to investigate, adopt and incorporate the principles 
of  CE into national policy and industrial practice, for 
many low and middle-income countries, these principles 
are still being explored and implemented. Challenges in 
terms of  poor infrastructure, weak policy, engagement of  
stakeholders, and inadequate awareness are affecting the 
adaptation of  CE in these countries (Pittri et al., 2025).
With the urgent need to find a new and sustainable 
approach for waste management, especially in resource 
and infrastructure-poor developing, rapidly urbanizing 
countries, making the shift towards the circular economy 



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offers a prime opportunity to subscribe to worldwide 
sustainability plans, in particular, SDG 12 Responsible 
Production and Consumption. The successful application 
of  CE in developing areas may drive broader social, 
economic, and environmental progress. This study, based 
on a systematic review method, focuses on:

1. Review the literature on circular economy approaches 
in Australia and other industrialized countries;

2. Discuss the 17 Regional Studies in detail and what 
trends, approaches and industrial applications you can 
find in these regions;

3. Assess the level of  CE integration in low and 
middle-income countries and the available evidence gaps 
and

4. Examine practical approaches and stakeholder-led 
initiatives in the successful adoption of  CE in developing 
countries to enhance sustainable waste management 
results.

Theoretical Background
Theoretical background the circular economy (CE) has 
emerged as a paradigm with the potential to respond 
to the issues of  waste generation, resource depletion, 
and environmental degradation. Several definitions 
for circularity have been proposed over the years by 
different scholars and organizations. define CE to be 
an economy modeled after a spiral-loop system in a way 
that minimizes energy throughput, physical material 
throughput, and their associated consequences of  
waste and pollution without impacting social, technical 
and economic systems. Equally, focus on the closed-
loop attitude of  CE, especially the Contrary to the 
conventional linear economy of  ‘take-make-dispose’, 
the circular economy promotes a more sustainable 
system of  production and consumption. It encourages 
practices of  reuse, repair, remanufacturing, recycling 
and material recovery (Psarommatis & May, 2025). The 
three connected principles of  the circular economy, 
according to the Ellen MacArthur Foundation, consist 
of  designing out waste and pollution keeping products 
and materials in use and regenerating natural systems’ 
the closest much of  resource management thinking has 
gotten to the 3R schema of  reduce, reuse, recycle. This 
is about maintaining the utility of  products by repairing, 
reusing or recycling, with a clear distinction between 
technical and biological materials. The circular approach 
aims to power without depletion, regenerate nature and 
allow biological materials to reenter safe, sustenance 
regions using decomposition or cascading of  elements.
The circular model represented by the Ellen MacArthur 
Foundation is separated into two streams: a technical 
loop for products and a biological loop for biodegradable 
materials (Kowalski & Makara, 2025). The technical loop 
aims to recover nonrenewable materials like plastics and 
metals, circulating them back to the loop to be reused, 
remanufactured or recycled the recirculatory loop, 
meanwhile, takes care of  the biodegradable substances 
that can be (Okafor et al., 2025) returned to nature 

without any problem. A key to boosting circularity is 
ensuring these loops are “tight” in that materials remain 
in the system as long as possible and with as much of  
their original value intact as possible. An important 
sub-aspect of  CE, and especially waste management, is 
cascading, where a product is used in successive rounds, 
with increasing value extraction over time. Inventory of  
material: considering how much and of  what kind of  
recycled goods are present in the system.

Assessment of  Material Quality
To know the status and lifecycle opportunity of  the 
materials for reuse strategy counselling.

Product Lifespan Assessment
Assessing product durability to minimize resource 
exhaustion and environmental damage.
OECD and developed countries have achieved significant 
development in CE, such as advanced policy instruments, 
technological innovation and stakeholder collaboration, 
while developing countries face obstruction due to poor 
infrastructure, insufficient policy and poor awareness. 
Yet, the theoretical underpinnings of  CE are germane 
and translatable in any context. By contextualizing these 
principles at local levels and promoting the involvement 
of  all stakeholders, developing countries can improve 
their waste systems, making them greener and more 
resistant to changes in the economy. In short, the 
circular economy presents a strong conceptual basis for 
a sustainable approach to waste management via systems 
change. Comparison of  developed and developing 
economies highlights difficulties and barriers, as well 
as prospects and potential for making theory a reality, 
reinforcing the need for national strategies to drive global 
implementation of  CE (Qu & Kim, 2025).

Figure 1: Ellen MacArthur Foundation illustration of  
circular economy

The circular economy (CE) has become a promising 
model for combating global environmental issues and 



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resource shortages. This model has been adopted more 
and more in rich countries, with the clothing, textile 
and durable goods industries often being pioneers. 
CE implementation is particularly intense in Europe. 
The European Commission has widely endorsed CE 
in terms of  regulation and action plans (Jurczak et al., 
2025). European Commission Vice-President Frans 
Timmermans called for departing the throw-away culture 
and seeking instead safety through conservation and 
resource efficiency. The European Parliament has always 
been at the forefront, pressing for the re-industrialization 
of  production based on re-design, which is also the core 
of  CE. Germany, for instance, has made significant 
progress to the extent that companies such as Mercedes-
Benz are rethinking product design for easy maintenance, 
servicing, renewal and redistribution (Pinyol Alberich & 
Hartley, 2024). A European Commission report from 
2014 suggested that CE might mean annual economic 
benefits of  600 billion euros for the EU manufacturing 
sector.
Denmark presents a rather particular CE model and 
attaches to industrial symbiosis. In JVSC, firms collaborate 
on a joint venture basis to build symbiotic relationships 
which improve the efficiency of  energy and material use. 
The Ka Lundborg Eco-Industrial Park in Denmark is one 
such model, which sees the by-product of  one company 
serve as the raw material for its neighbor in a closed-
loop system. Likewise, Scotland exhibits the kind of  
cutting-edge CE activity, for instance, MacRebur, which 
uses recycled plastic pellets in road construction rather 
than petroleum bitumen.
In Asia, CE was implemented at a fast pace in China. First, 
as China shifted from a planned to a market economy, 
production and consumption surged, bringing with them 
significant environmental problems. CE advancement 
in China has been included in the series of  Five-Year 
Plans, indicating its strategic significance. It pushed 
both domestic industries and foreign waste-exporting 
nations to reconsider how they process their waste (Li 
et al., 2024). Its capacity to make immediate compliance 
with such commands as Shanghai’s use of  free plastic 
bags demonstrates China’s marked dedication to CE. 
South Korea, Singapore and Japan, the other Asian 
countries, have also incorporated CE principles in their 
industrial policies.
The path to CE in Australia has been more gradual. 
The country has historically depended on shipping its 
recyclables, especially plastics, to other countries like 
China. But with import bans and other tighter restrictions 
overseas, Australia has been forced to develop the capacity 
to recycle at home. This transition has resulted in massive 
infrastructure and technological investments required 
to transform them into valuable products (Van Der 
Vlist et al., 2024). Sectors with a notable increase in the 
adoption of  CE practices include agri-food, mining and 
construction. This reform reflects a nascent national 
consciousness and commitment to sustainably addressing 
waste.

Although progress in adopting CE occurs in developed 
countries, numerous developing nations within Africa, 
the Pacific Islands, Southeast Asia, and South America 
still face overwhelming challenges in its implementation. 
Among the barriers are inadequate infrastructure, lack 
of  funds and absence of  policy backing. In most of  
these places, waste is still mainly disposed of  in landfills 
or open dumps, and recycling is minimal (Imam & 
Rafizul, 2025). Lack of  good regulatory regimes and 
public awareness make progress even more difficult. 
Nevertheless, the potential for CE is highly relevant 
to developing countries. The regions have plenty 
of  labour that could be used for repair, recycling 
and remanufacturing. Informal waste sectors, which are 
operating in many cities already, can be involved in the 
formal CE system to make the operations more efficient 
and regular. Also, by replicating the policy landscape 
and technological innovation potential of  developed 
nations, developing countries learn to leapfrog away 
from traditional waste management models towards 
sustainable approaches based on a circular economy 
(Rataj et al., 2024). The secret to successful CE delivery 
in the settings of  developing nations is to use context-
specific tactics (Tse et al., 2024). For example, an emphasis 
on local resource cycles, fostering small-scale repair 
industries and providing incentives for eco-design for 
local manufacturing can lead to workable and scalable 
ways. Sharing of  best practices and regional cooperation 
can also speed up progress. CE infrastructure can be 
created mainly by international collaboration, foreign 
investments and technology transfers.
In addition, mainstreaming CE into national development 
plans and climate action plans can ensure circularity is 
part of  long-term economic strategies. Equally important 
are education and capacity building at all levels (Wang et 
al., 2025). Community awareness and local expertise in 
CE practices will lead to more widespread participation 
and local ownership.
In short, if  in industrialized countries, policy and 
innovation plus industry cooperation have made impressive 
progress in adopting CE, emerging countries also have 
a crucial role to play in enhancing global sustainability. 
Given the appropriate enabling environment, inclusive 
policies, and international cooperation, CE can act as 
a route to environmentally sustainable, economically 
viable and socially equitable development in the world. 
The shift to a circular economy is not only urgent 
from an environmental perspective; it is an unparalleled 
opportunity to build resilient, adaptable economies fit for 
the future (Chang et al., 2024).
This research thus presents a comparative analysis of  
CE practice in developed and developing areas and 
pinpoints challenges, strategies, and possible trajectories. 
It provides a basis for more research and policy work that 
supports sustainable waste management worldwide.

LITERATURE REVIEWS
The importance of  article content analysis is presented 



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in this section by compiling the literature reviews related 
to the circular economy, focusing on sustainable waste 
management in developed and developing nations 
(Vann Yaroson et al., 2024). Since the past 5–10 years, 
there has been a significant surge of  scholarly interest 
in circular economy principles as a result of  global 
issues associated with waste, limited resources and 
environmental degradation. These mounting challenges 
have driven both academia and the policy world to 
question the linear economic system and take a turn 
toward more sustainable, circular models. 
The literature reviewed is presented about how some 
countries, especially in developed areas, adopted 
a circular economy model for waste management 
commitment. While these studies provide significant 
findings for policy design, industrial transformation, and 
life cycle perspective, they show some geographical gaps 
in intra-national comparison, in particular for developing 
countries (Cheng et al., 2024). The first comparative 
analysis of  the waste policy and the 3R (reduce, reuse, 
recycle) strategy in developing and developed countries, 
such as the European Union, the USA, Japan, Korea, 
China and Vietnam. This research was conducted as 
preliminary cross-national research. Yet there is little 
research on how countries such as Australia or the lower-
income nations of  Asia and Africa are incorporating 
concepts of  a circular economy into their waste systems.
Furthermore, most works focus on developed countries 
like Germany, Japan or the EU members, so there is 
also an obvious motivation to research and compare 
adoption cases in emerging and developing countries. 
Table 1 presents a summary of  the related literature 
and establishes the basis for this study, which seeks 
to make up this gap by a comparative examination of  
the adoption of  a circular economy between developed 

and developing countries in terms of  sustainable waste 
management.

MATERIALS AND METHODS
To evaluate the adoption and practice of  CE in developed 
and developing countries, with a focus on sustainable 
waste management, a systematic literature review 
was used as the primary research methodology. This 
methodology enabled a detailed analysis of  academic 
and policy literature that captured the development and 
implementation of  CE principles across multiple national 
contexts.
The Centre describes systematic reviews for Reviews 
and Dissemination as a focused piece of  secondary 
research that has a four-part process to identify, assess, 
interpret, and synthesize all research evidence relevant 
to the research question, unlike traditional literature 
review, which can be based on qualitative and quantitative 
methods for investigation of  some themes, synthesis, 
analyses in a way to use explicit, reproducible objective 
methods to minimize bias in the tested processes.

The Review Process for This Research Included a 
Four-Step Systematic Review
Identification of  Criteria: There were clear and developed 
inclusion and exclusion criteria set to help pick the 
academic papers, reports and policy analyses showing 
how knowledge and circular economy practices in waste 
management were adopted in both developed and 
developing countries.

Database Search and Paper Collection
We systematically searched for peer-reviewed literature 
published present date in academic databases, including 
Scopus, ScienceDirect, SpringerLink, and Google 

Figure 2: Research study



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Scholar, using specific keywords (e.g., circular economy, 
waste management, developed countries, developing 
countries, sustainability, and keywords related to the 
objectives).

Screening and Assessment
Papers returned from the search results were screened 
according to the relevance to the research questions 
and consideration for geographic orientation, depth 
of  analysis, methodological soundness and practical 
implications. Studies that lacked comparison and/or 
contextualization of  waste management in cities from 
different countries or provided similar analysis but in 
a system of  reuse or waste to new products in developing 
countries were excluded.

Data Extraction and Thematic Coding
Material was reviewed and coded based on year of  
publication, country/region that research was focused 
on, methodological approach undertaken, industry of  
application and key findings regarding waste management 
systems. This allowed us to compare advanced economies 
(EU countries, Japan, Germany) to developing or 
emerging countries (Bangladesh, India, Vietnam).
Finally, this approach to the data permits a balanced 
view of  how the CE is being framed and enacted in 
different economic and social settings, with a view to 
discovering commonalities in approaches as well as 
thinking critically with and against the framings and 
practices of  doing the CE in other places. Visual search 
is depicted in Figure 3.

Table 1: Summary of  Literature Review
No. Title Reference Summary Country 

Context
1 European National Road 

Authorities and Circular 
Economy: An Insight into Their 
Approaches

(Abu-Bakar, 
Halidu, et 
al.,2024)

Reviews circular economy practices 
adopted by national road authorities 
in Europe, aiding in transitioning 
towards circular business models.

Developed 
(Europe)

2 End-of-Life Options for Bio-
based Plastics in a Circular 
Economy: Status Quo and 
Potential from an LCA Perspective

(Mudersbach, 
Marina, et 
al.,2025)

Provides an environmental life cycle 
perspective on end-of-life strategies 
for bio-based plastics, assessing 
circular potential.

Developed 
(Germany)

3 A Review of  Circular Economy 
Development Models in China, 
Germany and Japan

(Campoli, 
Jessica Suárez, et 
al.,2025)

Compares the evolution of  circular 
economy frameworks across 
advanced economies and sectors, 
including waste management 
systems.

Developed & 
Emerging

4 Advancing to a Circular 
Economy: Three Essential 
Ingredients for a Comprehensive 
Policy Mix

(Wasserbaur, 
R., Sakao, T., & 
Milios, L, 2022).

Analyzes EU circular economy 
policy mix and identifies areas 
where material efficiency is lacking 
for more sustainable waste handling.

Developed 
(EU)

5 Conceptualizing the Circular 
Economy: An Analysis of  114 
Definitions

Kirchherr, 
Julian, et al., 2023

Examines a wide range of  
definitions and interpretations of  
the circular economy, revealing its 
integration into sustainability and 
waste management frameworks.

Global

Search Criteria
The definition of  specific inclusion and exclusion 
criteria for the selection of  studies related to the research 
questions was a crucial first step of  this systematic 
review. Given the fact that this study could be 
characterized as a comparative study, it empowers the 
comparison between what it means for the circular 
economy to enter both developed and developing 
countries from the standpoint of  sustainable waste 
management. It led to the use of  a transparent and 
varnished search strategy to warrant the credibility and 
relevance of  the selected data sources. The present 
study is limited to the scientific literature published 
in reputable databases (Scopus, ScienceDirect, Google 

Scholar, and Web of  Science). Textbooks and other 
non-journal or non-academic material were not part 
of  this review. Non-academic sources (e.g., books, 
non-peer-reviewed reports, conference presentations, 
and unpublished theses) were not considered to ensure 
academic quality. The following criteria guided the 
selection of  studies:

Type of  Access and Type of  Documents
Only open-access peer-reviewed journal articles 
were included in order to keep the data open and 
academically transparent. The searches were restricted 
to published articles and reviews indexed in Scopus and 
Web of  Science.



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Year of  Publication
As the knowledge of  the concept of  circular economy 
is still developing, we only considered articles published 
from 2010 to 2020. This period is when the circular 
economy discourse increased, and there appeared 
innovation in sustainable waste management.

Author Competence
The included studies were held by researchers with a 
reputation in the development of  circular economy 
studies, some of  them even having published more 
than one article in high-impact environmental and 
sustainability sciences journals.

Subject Area
Only papers with the subject area environmental 
science/ sustainability were included in order to maintain 
theme relevance with waste management and circular 
economy activities.

Country/Territory Designation
The study concentrated on a comparison between 
developed and developing countries. Country 
categorization was based on the classification of  the 
World Bank [34] and the classification of  the International 

Monetary Fund (IMF).

Developed countries
Australia, USA, UK, Germany, Netherlands, Sweden, 
France, Japan, Finland, Italy, Norway, Austria, New 
Zealand and other high-income economies.

Low- and Middle-Income Countries
South Asia, South East Asia, Sub-Saharan Africa and 
Latin America.

Special Sase China
Although the country is not identified as a developed 
state, having made significant progress in circular 
economy practices, China was added to the list.

Language
Only English language publications were included to 
maintain uniformity and clarity in data interpretation.
The full range of  criteria factored into the selection 
process, and these ensured that the selected studies 
became ones which were methodologically sound, 
thematically relevant, regionally diverse, and, in effect, 
allowing a critical comparative analysis of  circular 
economy uptake sustainable waste management.

Figure 3: Research methodology overview

Article Search
The second step of  this systematic review type study 
was a comprehensive search and collection of  the 
academic papers related to the main topic of  the circular 
economy adoption between developed and developing 
countries from which soft waste management (so-called 
waste management system), in particular, deserved 
special interest. We performed a search primarily in two 
established academic databases: SCOPUS and Web of  
Science (WOS). A sum of  182 articles were obtained 
from these databases: A total of  106 articles were 

found from SCOPUS, which includes 70 published 
research papers, 11 review papers, and 25 conference 
papers. Of  these, 103 were published in full and added 
to the collection, and three articles were in press.76 
articles were found in the Web of  Science, including 66 
research articles and 10 reviews. A manual search was 
also conducted to cover comprehensively this study 
design and avoid abstract bias. It was necessary to do 
so to prevent search restrictions and keyword-related 
omissions, particularly in automated database systems. 
The manual review aimed at confirming the relevance of  



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each article according to the study and at filtering articles 
used in the dataset to keep only the most relevant ones. 
Consistent with the scope of  the study introducing 
circularity in developed and developing economies, the 
database search was narrowed down through delimitation 
with regional keywords. For instance, the terms “circular 
economy in developing countries” and “circular economy 
in South Asia” were employed to identify contextually 
relevant literature. On the other hand, the key term 
circular economy in Australia” was adopted as a case 
concentration for advanced countries and resulted in 
23 SCOPUS articles and 28 articles from the Web of  
Science. Examination of  articles the articles generated 
from the search in each database were screened. This 
methodical and systematic article search established 
the basis of  an exhaustive comparative examination of  
the extent to which CE principles are being researched, 
applied and evaluated in both high-income and low-
to-middle-income countries in the scope of  sustainable 
waste management. Another thirty-eight papers were 
secondarily recruited from previous search results. A 
disproportionately high number of  them had already 
been searched; their initial searches revealed that they 
were not being included because of  not initially meeting 
the criteria for inclusion.

Screening of  Articles and Inclusion Criteria
After a thorough search process, 220 research papers 
were initially obtained from the selected databases. Each 
paper was meticulously read and assessed to ensure that 
they were in line with the requirement scope of  this 
study, contributing to either implemented or adopted 
circular economy principles in both developed and 
developing countries, focusing mainly on sustainable 
waste management. Papers which did not relate to 
circular economy, sustainability, or waste strategies, 
in particular those that did not involve comparative 
frameworks or did not focus on the implementation 
side, were the ones discarded from the final data set. 
Nevertheless, if  the circular economy was found to be 
a relevant sub-theme, we used an independent, more 

profound assessment of  the texts of  such publications, 
as they were likely to offer supplementary views on 
relevant knowledge. In the process of  systematic review, 
150 articles were eliminated from the review, leaving 70 
articles that were considered powerfully relevant to the 
research questions.

Content Analysis of  Articles and Results
The results of  this final stage of  the systematic review 
consisted of  a thorough review of  the 70 articles 
retained, which provided an exploration into the 
main dimensions relevant to the comparison between 
developed and developing countries’ uptake of  the 
circular economy. Year of  publication to track change 
and development in how discourse on the circular 
economy is framed. Methods used to determine whether 
studies used qualitative, quantitative or mixed methods. 
Industry or sectoral focus urban waste, industrial waste, 
plastic recycling, construction waste, etc. The patterns 
of  keywords of  these last 70 articles reveal the themes 
that shape the circular economy in this field of  waste 
management and illustrate both emerging trends and 
geographic differences. The list of  keywords found 
across the final sample is provided in Table 2.

RESULTS AND DISCUSSION
This section analyses the final sample of  70 articles that 
were chosen, including aspects such as the methodology 
used, the geographical scope, and the industry settings 
of  the covered papers. The results are presented in Table 
3, which shows the number of  documents classified 
under each dimension and their respective percentage. 
We will elaborate on these percentile distributions in 
the following subsections. This surge demonstrates an 
increasing concern in both developed and developing 
countries on circular economy approaches in dealing 
with sustainable waste management issues. Recent 
growth in publications evidences the widening research 
interest in how circular economy principles can be put 
into practice to drive resource efficiency and recirculation 
and, hence, reduce waste in different economic settings.

Table 2: Keyword Search for final draft
No. Search Keywords Scopus (Final 

Selected)
Web of  Science 
(Final Selected)

1 “Circular economy” AND “developed countries” AND 
“developing countries”

106 (22) 76 (13)

2 “Circular economy” AND “sustainable waste management” 23 (10) 28 (5)
3 “circularity” AND “recycling” AND “end-of-life” AND “closed-

loop” AND “developed countries” AND “developing countries”
26 (15) 20 (5)

Total 155 (47) 124 (23)

• Numbers outside parentheses represent the total 
articles found in the databases.

• Numbers inside parentheses indicate the final selected 
articles included in the review after screening.



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Table 3: Analysis of  Research Methodology and number of  relevant papers
Category Subcategory/Methodology/Region/

Industry
Number of  Papers Percentage (%)

Research Methodology
Literature Review 13 19
Case Study 20 29
Model 10 14
Survey 9 13
Theoretical and Conceptual Papers 13 19
Analysis (MDA, CWA, Empirical) 6 9

Geographical Context
Oceania (Australia) 15 21
Europe 30 43
North America 4 6
Asia 15 21
Worldwide 6 9

Industry Setting
Technology and Innovation 10 14
Urban and Municipal 9 13
Metal and Steel 6 9
Food and Agriculture 6 9
Plastics 5 7
Construction 4 6
Mining 3 4
Glass 1 1
Electronics (Household Appliances and 
Mobile Phones)

3 4

Tourism 2 3
Energy (Oil and Gas, Bio-hydrogen) 6 9
Textile 2 3
SMEs (Small and Medium Enterprises) 3 4
Transportation and Logistics 3 4
Others (Material Flow, etc.) 2 3
Unspecified 5 7

Table 4: Analysis of  Research Methodology and percentage of  relevant paper
Research 
Methodology

Description Percentage (%) Geographic Focus 
(Examples)

Case Study Most common method; applied in Australia, 
Europe (Poland, Italy, Netherlands, Finland, Spain, 
Germany, Sweden, Latvia), Asia (mainly China)

29 Australia, Europe, 
China

Literature Review Reviews of  previous studies on circular economy 
across various regions

19 Multiple regions

Theoretical and 
Conceptual Papers

Explanation of  circular economy theories and 
concepts in different regions

19 Multiple regions

Model Use of  models to study circular economy concepts 14 Various
Survey Questionnaires and interviews to collect primary data 13 Various
Analysis Includes multidirectional analysis (MDA), common 

weight analysis (CWA), empirical studies
9 Various



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Geographical Context
The geographical setting of  this exploration indicates 
the countries /regions in which circular economy and 
sustainable waste management have been considered. We 
consider a developed-developing country comparison 
in this analysis. The places of  primary focus are Oceania 
(predominantly Australia), Europe, North America, and 
Asia, and some interest in international studies that 
consist of  two or more countries. For Europe, several 
studies consider the “European Union” as a pool rather 
than specific countries. Yet, individual nation-states 
such as the Netherlands, Sweden, Poland, Germany, 
the United Kingdom and Finland are also captured, 
given their essential positions about the adoption of  the 
circular economy. Australia is central to Oceania, where 

waste management, including a circular economy, is of  
growing interest. For North America, the United States 
is most prominently reported, and for Asia, China is at 
the forefront with its excellent developments and mass-
scale initiatives of  the circular economy. Publications 
in Asia, especially China, began already in 2011, 
coinciding with the nation’s early and strong national 
embrace of  circular economy. China’s role shows 
that developing countries, too, can be instrumental in 
promoting circular economy concepts for sustainable 
waste management. This spatial comparison emphasizes 
the different stages and centers of  attention between 
developed and developing countries in the uptake of  the 
circular economy, stressing global patterns and region-
specific patterns.

Figure 5: Research methodology used 

Industry Setting
The 20 selected papers demonstrate a variety of  cases 
from industry sectors adopting the circular economy for 
the sustainable management of  waste, with differences 
between those considered in developed and developing 
countries. The technology and innovation sectors are 
disproportionately referenced-a clear indication of  the 
technology-led change required to push forward the 
circular economy. Urban, municipal and metropolitan 
spaces are also key focus areas, particularly in developed 
economies like those of  Europe, where much attention 

is devoted to circular economy transitions in cities and 
urban infrastructure. The representations of  the three 
sectors in metal and steel, energy, food and agriculture 
industries are about 9% respectively. The metal and steel 
industry are one of  the most significant contributors 
to the world economy, especially in developing countries, 
including China, with economic growth and urbanization 
leading to rising needs for sustainable resource utilization 
in Industry 4.0. Metal recycling and reuse through circular 
economy practices have been investigated in developed 
countries like the USA, Australia, the European Union, 

Figure 4: Distribution of  papers



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Table 5: Industry Setting Distribution in Circular Economy Publications (N=70)
Industry Sector Number of  Papers Percentage (%)
Technology and Innovation 10 14
Urban, Municipal & Metropolitan 9 13
Metal and Steel 6 9
Food and Agriculture 6 9
Energy (Biofuels, Oil, Gas) 6 9
Plastics 5 7
Construction 4 6
SMEs (Small and Medium 
Enterprises)

3 4

Electronics (Appliances, Mobile) 3 4
Transportation and Logistics 3 4
Mining 3 4
Textile and Clothing 2 3
Tourism 2 3
Others (Material Flow, etc.) 2 3
Glass 1 1
Unspecified 5 7

Figure 6: Geographical context

etc. The food and agriculture industry are a critical 
component of  the global economy but also a significant 
driver of  environmental pressures associated with 
resource inefficiencies and GHG emissions. Both 
developed and developing nations are experimenting 
with circular economy approaches to ease the impacts 
of  these pressures, and scholars have detailed examples 
from Australia and Europe.
There are a number of  papers focused on the energy 
areas that reflect the world’s interest in the management 
of  waste and emissions in the world in a sustainable way. 
Plastics, and more specifically packaging and single-use 

plastics, play a crucial role as well in light of  the enormous 
societal and financial cost of  plastic waste that affects 
us all over the world. SMEs represent about 4% of  the 
studies; in most cases, the units of  analysis are European 
SMEs, which shift from a linear to a circular business 
model. Other sectors described include textiles & 
wearing apparel, mining, construction, transportation 
& logistics, tourism, and electronics (consumer goods, 
computers and phones). Some articles cover the 
principles of  the circular economy without a specific 
industry, although they offer reasonable content for 
sustainable waste management.



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Discussion
In this analysis, we critically examine the application 
of  circular economy (CE) principles for sustainable 
waste management and compare the practices of  
the developed world, including (but not limited to) 
Australia and other high-income nations, with the 
developing world. The conversation is structured 
in terms of  the environmental, economic, and 
social impacts of  CE and the existing situation of  
waste management systems in different degrees of  
development (Mallik & Rahman, 2024). More developed 
economies such as Australia have become more aware 
of  the way the behavior of  individuals and industry 
have contributed to the widespread loss of  natural 
resources. Such consciousness has led some to seek CE 
as a model for sustainable development. One example 
is in Australia, where, through the power of  technology 
and engineering, industrial design has been repositioned 
in the realms of  human-centered and environmentally 
sustainable grounds (Islam et al., 2025). On the other 
hand, in many developing countries, there are serious 
problems of  waste mismanagement, such as disposal by 
open dumping, open burning, and infrastructure facilities. 
Environmental pollution, health hazards and economic 
losses are some of  the consequences of  these practices. 
Cases in Asia and Africa, such as Cambodia, Thailand, 
Nigeria, and Mozambique, illustrate the extent of  the 
problem (cities producing hundreds of  thousands 
of  tons of  unmanaged waste a year). Environmental 
pollution of  heavy metals, particularly in urban 
agglomerations like Chennai city (India), is another 
supporting reason for addressing the given problem 
at the earliest time. Although many alternatives have 
been suggested, including waste-to-energy and recycling 
programs, little has been done to deal with the issue at the 
source. This is where CE provides a fundamental way 
forward through its reuse, redesign, refurbishment and 

remanufacturing principles (Mallik et al., 2025). Recently, 
Developmental Organizations and Academia have 
also started to examine some CE models in emerging 
countries. Examples from India, Brazil, Kenya, and 
Ghana indicate that CE carries the potential to realize 
triple-bottom-line effects: economic development, job 
creation, and environmental sustainability (Mallik, 2024).

Bio-Economy Sector
Places such as the Congo Basin, Amazon rainforest , 
and Southeast Asian tropical forests are home to a wealth 
of  biodiversity and forest products. Circular approaches 
in the bio-economy may also contribute to counteracting 
deforestation by supporting efficient biomass utilization 
and the manufacture of  products from biological 
resources, which is consistent with CE principles, e.g. 
cascading use of  resources.

Mineral Extraction and Mining
Resource-rich developing countries (for example, 
Nigeria, Brazil, Chile and India) tend to depend heavily 
on extractive-based industries. But they can also be 
environmentally depleting. CE practices impose a 
sustainable solution based on recycling, reuse and much 
less virgin resources so as to enhance the protection 
of  the environment (Li, 2019) and encourage indirect 
support to the economy.

Urban Waste Disposal and Recycling
Municipal waste generation in the cities of  developing 
countries is increasing while most cities of  the world are 
disposing of  their waste in one way or another in open 
dumps and landfills. CE is also characterized by practical 
end‐of‐life disposal solutions (including comprehensive 
recycling models, wastewater reuse, and digital techniques, 
such as innovative sorting systems) facilitating efficient 
and sustainable urban waste management.

Figure 7: Industry Setting 



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Table 6: Comparative Analysis: Developed vs. Developing Countries
Aspect Developed Countries (e.g., Australia, 

EU Nations)
Developing Countries (e.g., India, Nigeria, 
Cambodia)

Public Awareness 
and Behavior

High level of  awareness; citizens recognize 
their microeconomic impact on resource 
decline

Limited awareness; behaviors shaped more 
by poverty and lack of  education than by 
sustainability concerns

Technology & 
Innovation

Strong emphasis on R&D; human-
centered design; advanced technologies in 
waste processing (computerized sorting)

Limited access to technology; reliance on basic, 
often informal waste management practices

Economic Impact 
of  Circular 
Economy

Proven positive economic effects; e.g., EU 
can save €600 billion annually and gain 
€1.8 trillion net benefit

Circular economy potential recognized but 
underutilized; promising economic benefits 
still largely theoretical

Environmental 
Benefits

Significant potential for emissions 
reduction (7.5 billion tones CO₂ globally); 
aligned with climate goals

Severe pollution from open dumping and 
burning; circular economy could alleviate major 
environmental health issues

Employment 
Impact

Estimated creation of  hundreds of  
thousands of  jobs (EU: up to 747,829 new 
jobs)

High potential for job creation in recycling and 
circular sectors, but hampered by skill gaps and 
lack of  training

Waste Management 
Practices

Well-developed infrastructure; widespread 
recycling and controlled disposal systems

Predominantly open dumping, poor collection 
systems, and landfill overuse

Key Circular 
Sectors

Technology, manufacturing, construction, 
and packaging industries

Bio-economy (forests/agriculture), mineral 
extraction & mining, municipal waste management

Challenges Skill gaps in specific circular roles; need for 
more integrated policy frameworks

Poor infrastructure, lack of  circular economy 
education, informal waste sectors, and limited 
funding

Adoption Drivers Strong policy support, innovation 
ecosystems, environmental urgency

International aid, emerging academic interest, 
local entrepreneurial initiatives

Circular Bio-
Economy

Efficient use of  biomass resources, focus 
on cascading use and sustainable packaging

Rich in forest resources (e.g., Amazon, Congo 
Basin) but threatened by deforestation; circular 
bio-economy can reverse trends

Extractive 
Industries

Focus on reducing raw material extraction 
through recycling and product redesign

Economies heavily dependent on mining (e.g., 
Nigeria, Brazil, India); circular economy can 
reduce socio-economic and environmental risks

Municipal Waste 
Management

Smart city solutions, Industry 4.0 
integration, formal recycling infrastructure

Rapid urbanization with informal systems, 
often unmanaged waste; circular economy 
offers cooperative, scalable models

Government Role Policy-making, innovation funding, 
regulation of  circular practices

Must play central role in regulation, public 
education, and enabling community-level 
initiatives

Business 
Involvement

Leading investments in circular innovations 
and sustainable products

Emerging interest; opportunities for SMEs and 
social enterprises in local circular business models

Role of  General 
Public

Increasing participation in recycling, reuse, 
and sustainable consumption

Limited engagement due to lack of  
infrastructure and access; potential to scale 
through education and policy incentives

The successful adoption of  CE requires coordinated 
efforts from multiple stakeholders:

Businesses and Industries
Can drive innovation through sustainable product 
design, materials substitution, and investment in clean 
technologies.

Governments (National and Local)
Must provide leadership through policy frameworks, 

funding, and educational initiatives to foster CE.

General Public
Plays a key role by adopting sustainable consumption 
practices, proper waste sorting, and preferring reusable 
products.

CONCLUSION
The transition to a circular economy holds transformative 
potential for sustainable waste management. While 



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developed countries have made significant progress in 
adopting CE principles, developing nations are still at the 
early stages, hindered by infrastructural, educational, and 
governance challenges. A comparative understanding of  
these contexts provides valuable insights for tailoring CE 
strategies that align with local capacities, resources, and 
socio-economic conditions. Bridging these gaps through 
policy support, investment in innovation, and inclusive 
stakeholder participation will be crucial for global 
progress toward sustainability.

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