Drivers of Consumer Preferences and Willingness to Pay for Circular Buildings in Urban Ghana

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Abstract

The construction sector’s significant environmental footprint necessitates urgent transitions to circular economy practices; however, consumer demand for circular buildings remains underexplored in developing economies. This study investigates the drivers of consumer preferences and willingness to pay (WTP) for circular buildings in urban Ghana, addressing a critical gap in the demand-side research. By integrating behavioural economics and sustainability frameworks, this research provides insights into aligning market supply with consumer expectations and fostering sustainable urbanisation. A cross-sectional survey of 200 respondents across four major cities (Accra, Kumasi, Cape Coast, Takoradi) employed stratified random sampling to capture socioeconomic diversity. Data were analysed using factor analysis, regression models, and thematic coding to identify key drivers and barriers. The findings revealed that energy efficiency (mean = 2.66) and adaptability (mean = 2.84) were the top priorities, reflecting Ghana’s cultural context of multigenerational households, while distrust in certifications and material reuse persisted. The WTP peaked for eco-communities (RII = 0.46) and renewable energy (RII = 0.46), which were strongly influenced by income (β = 0.32) and education (β = 0.28). This study contributes insights into holistic consumer perceptions of circularity (77.3% variance explained by a single factor), in contrast to fragmented drivers in high-income contexts. Practically, the findings advocate tiered subsidies to enhance affordability, modular designs to meet adaptability demands, and community-centric renewable energy integration. For policymakers, the results emphasise the need for localised campaigns to demystify circular principles and rebuild trust in certifications. This research bridges critical gaps in the demand-side literature, offering a roadmap for scalable circular construction strategies in emerging economies.

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