Blockchain Technology Adoption in the Circular Economy: Regulatory Frameworks and Stakeholder Engagement for Scalable Circularity
DOI:
https://doi.org/10.51137/wrp.ijsbe.683Keywords:
Blockchain Technology, Circular Economy, Stakeholder Engagement, Traceability, Smart ContractsAbstract
Blockchain is often proposed as a digital infrastructure to support the transition to a circular economy (CE), but its real-world adoption and scalability remain inconsistent. This review, guided by the PRISMA framework and using a transparent thematic synthesis, compiles research on how regulatory frameworks and stakeholder engagement influence the adoption of blockchain for scalable circularity. The findings suggest that adoption is most credible when technology provides measurable circular metrics, such as product or service lifecycle traceability and auditability, along with the enforceability of circular rules programmed through smart contracts, including take-back incentives and regulatory compliance checks. Scalability is limited by blockchain constraints, including data reliability risks, interoperability, privacy and sharing concerns, differences in capabilities among supply chain participants, and legal issues such as smart contract enforceability and liability. Regulation and standardization are vital tools for shaping the market, reducing uncertainty, simplifying onboarding, and enabling the development of interoperable circular metrics. Collaboration among stakeholders also depends on incentives aligned with each party’s motivations, fair sharing of benefits from information exchange, and governance structures that clarify decision rights and address power imbalances. This paper develops an integrative conceptual framework that explains the relationship between blockchain components, circular governance mechanisms, stakeholder engagement, and scalable outcomes for researchers, managers, and policymakers.
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Copyright (c) 2026 Robert Agwot Komakech, Lawrence Etoromat (Author)
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