Digitalizing Circular Economy Systems: A Multi-Criteria Decision-Making Approach to Sustainable Economic Development

Abstract

The transition from linear to circular economic systems represents one of the key challenges for achieving sustainable economic development. At the same time, digitalization is increasingly recognized as a strategic enabler that can support the implementation, monitoring, and optimization of circular economy practices. This paper explores how digital technologies and multi-criteria decision-making (MCDM) methods can support the transition toward more sustainable and resource-efficient economic systems.

The research is conceptually grounded in a project focused on strengthening institutional and research capacities for the digitalization of circular economy practices. The study develops a methodological framework that integrates sustainability indicators with multi-criteria decision-making tools in order to support decision-making processes related to circular economy implementation. The proposed approach enables the evaluation and prioritization of circular economy strategies by considering multiple economic, environmental, and social criteria simultaneously.

The analysis highlights the importance of stakeholder cooperation among academia, policy makers, and small and medium-sized enterprises in creating enabling conditions for circular economy adoption. Digital platforms and data-driven tools are identified as key instruments for improving resource efficiency, facilitating information exchange, and supporting evidence-based policy making.

The results of the study contribute to the growing body of research on sustainability and circular economy by demonstrating how MCDM approaches can support the design of more efficient and transparent decision-making processes. Furthermore, the research provides practical recommendations for strengthening circular business models, supporting green digital transformation, and enhancing sustainable economic development.