Factors Influencing Circular Carbon Economy Readiness Among Heavy Industries in China

This study examines the readiness of China’s heavy industries, which account for over 60% of the nation’s energy consumption and carbon emissions, to adopt the Circular Carbon Economy (CCE). CCE, an evolution of the Circular Economy concept, emphasizes carbon reduction, reuse, recycling, and removal. By integrating Institutional Theory, the Resource-Based View (RBV), and the Technology Readiness Level (TRL) framework, this study provides a comprehensive analysis of external and internal factors influencing CCE readiness. Data from 240 respondents were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), offering a detailed understanding of the readiness landscape. The study combines theoretical insights with empirical validation, enriching the literature and providing actionable guidance for policymakers. Results underscore the importance of regulatory compliance, organizational commitment, and technological readiness in promoting low-carbon practices and advancing CCE readiness, while societal pressures and imitative adaptation showed limited influence. Furthermore, this study represents the first application of the TRL framework to assess CCE readiness in China’s heavy industry. This innovative approach extends the framework’s applicability beyond individual technologies to evaluate industry-wide readiness, offering a replicable methodology for similar studies in other developing countries. The findings bridge gaps in the literature and contribute to the global discourse on sustainable industrial transformation. They provide policymakers and industry leaders with critical insights to design strategies that enhance readiness and support China’s dual carbon goals, fostering a sustainable transition to CCE.