A behavioral perspective on circular economy awareness: The moderating role of social influence and psychological barriers

While prior research has primarily focused on corporate and governmental aspects of Circular Economy (CE) adoption, this study examines a less-explored area: people's awareness of CE principles. We employ the theory of behavioral choice (TBC) as a theoretical framework, shedding light on the psychological causes of inaction that hinder CE awareness. Our survey gathered responses from 2070 participants using non-probability sampling and applied composite-based structural equation modeling (CSEM) to analyse the data collected. Our findings reveal that these psychological barriers, such as the perception of sunk costs and limited cognition, impede individuals from embracing CE principles. However, social influence, encompassing the persuasive influence of peers, family, and celebrities, emerges as a promising factor in overcoming these barriers and boosting CE awareness. This study breaks new ground by examining the connection between psychological barriers and CE awareness across five distinct CE strategies, offering fresh insights into how CE awareness influences decision-making for a more regenerative economy. The practical implications of our research underscore the importance of fostering societal engagement in CE and promoting strategies to mitigate psychological barriers through education, incentives, and communication programs.