Applications of agent-based modelling in circular economy research: A systematic literature review

The transition to a circular economy (CE) requires systemic perspectives to comprehend the complex behaviours of actors and support their decision-making processes. Agent-based modelling (ABM) has proven to be a promising approach to studying complex nonlinear phenomena in human and natural systems like CE. This critical review paper aims to understand the current state of ABM application in CE research and explore potential future study areas. Bibliometric and content analyses were applied with a stock of 45 articles employing ABM in CE, in addition to 13,797 CE articles that have not utilized ABM. The results called for expanding the application areas of CE research using ABM, focusing on policy and institutional environment, sustainable life cycle management, broadening scope of CE strategies, and social and environmental impacts. The content analysis revealed the need to employ more robust and up-to-date methodologies, such as theories underpinning agent behaviours, data sources and assumptions, validation and simulation procedure, replication of model runs, model representation and documentation, and stakeholders’ participation in the modelling process. This study introduces a participatory-integrated framework designed to equip CE researchers employing ABM with guidance for robust modelling and simulation practices. Such ABMs will offer valuable insights for developing effective policies, strategies, and business practices toward enhanced sustainability.