Measuring product-level circularity performance: An economic value-based metric with the indicator of residual value

The construction industry is becoming circular, where resources are used in a closed loop. However, no standard method is available for measuring the circularity performance of building components. The Material Circularity Indicator (MCI) is one of the most ambitious methods. However, the MCI is criticized for its reliance on mass flow and the over-optimistic assumption regarding residual value. The research thus aims to adapt the MCI by addressing these limitations by using the economic value (E) as the measurement unit and introducing a new indicator of residual value (R). A residual value calculator is also developed to quantify R. A case study approach is adopted to evaluate the effect of E and R individually. The results show that using E can award materials’ contributions regarding circularity based on their relative value. Furthermore, using R can capture value change and provides different significance to materials input and output considering value difference.