Integrating Circular Economy Principles into Green Economics: A Systematic Review and Future Research Agenda

Abstract

The rapid pace of environmental degradation, the depletion of natural resources, and unsustainable production patterns have made it clear that we need a shift toward regenerative, resource-efficient economies. Even though policymakers around the world have started paying attention to this issue, the integration of Circular Economy (CE) principles into Green Economics (GE) is still fragmented and not fully developed. This study addresses that gap by systematically reviewing recent research, using Scopus AI-assisted analysis (March 2026) to uncover how CE and GE intersect, the main emerging trends, and directions for future research. By analysing peer-reviewed publications across economic, technological, and environmental dimensions, this study finds that CE integration strengthens sustainability by improving resource efficiency, turning waste into value, and fostering low-carbon innovations. Long-standing themes such as waste management and circular supply chains show that circular practices are becoming well-established, while newer trends like urban circular economies and bioeconomy models reveal how CE is expanding into cities, agriculture, and bio-based industries. Emerging intersections between CE and green finance or renewable energy supply chains are creating exciting opportunities for research at the crossroads of economics, sustainability, and technology. The study also highlights the importance of technology and policy in driving CE adoption. Tools like IoT, AI, blockchain, and Industry 4.0 technologies enable more efficient and traceable circular systems, while incentives like green taxes and subsidies encourage businesses to implement circular practices. From a theoretical standpoint, this research helps position circularity as a multidimensional concept in sustainable economic thinking. Practically, it offers actionable guidance for policymakers, businesses, and researchers to align CE strategies with the United Nations Sustainable Development Goals (SDGs). Finally, the study identifies quantitative analyses and cross-industry comparisons as promising paths for future research to better understand and implement circular approaches for sustainable growth.