Circular Economy in Chinese Heritage Conservation: Upcycling Waste Materials for Sustainable Restoration and Cultural Narrative Revitalization

Abstract

Material depletion, environmental degradation, and cultural revitalization pose significant challenges to heritage conservation in China. Within the context of heritage restoration, the principles of the circular economy (CE)—including R1 (Reduce), R2 (Reuse), and R3 (Recycle)—can provide a structured framework for sustainable interventions. By prioritizing resource efficiency, minimizing waste generation, and repurposing materials, CE strategies support the preservation of cultural heritage while mitigating environmental impact. This study explores the role of waste material upcycling in sustainable heritage conservation (SHC) in tandem with the revitalization of cultural narratives. This study examines the core factors affecting sustainable restoration practice through the lens of the circular economy theory and sustainable heritage conservation theory. The research design adopts mixed methods whereby quantitative web surveys are conducted among practitioners of conservation and complemented with qualitative case studies from CE-based intervention restoration projects in China. The study identifies five independent variables—upcycling of waste materials, resource efficiency, stakeholder engagement, economic viability, and cultural narrative revitalization—with sustainability-driven innovation acting as a mediating factor. Preliminary findings indicate that upcycling enhances material longevity and minimizes restoration expenses while promoting social acceptance of circular practices through stakeholder engagement. Revitalizing cultural narratives enhances historical continuity while preserving intangible heritage. The results indicate that CE-based interventions positively influenced SHC, with sustainability-driven innovation as a mediator. With this, it was concluded that introducing circular economy principles in heritage conservation would promote environmental sustainability, economic viability, and culture-building resilience. Policy recommendations include incentivizing upcycling technologies, promoting interdisciplinary collaboration, and embedding CE principles in national heritage policies.

1. Introduction

Integrating the principles of the circular economy into the conservation and management of heritage is emerging as an innovation strongly advocated for promoting the sustainability agenda and preserving cultural narratives [1]. China presents a very impactful case for this application because of its vast cultural heritage but is sensitively faced with grave environmental challenges after drastic developments in urbanization and industrialization [2]. Upcycling waste material for sustainable restoration projects not only provides an avenue for environmentally sound solutions but also reinvigorates cultural narratives to keep heritage sites alive and relevant to future generations [3]. Heritage conservation may involve preserving the physical and aesthetic components of cultural sites and retaining them for succession [4]. However, preservation, in general, includes a great deal of new materials and resources that are more damaging, as opposed to being environmentally safe. The circular economy offers an alternative in that it emphasizes the reuse and repurposing of such materials and, therefore, prevents wastage and promotes resource conservation [5,6]. Heritage conservation translates to upcycling the process of turning discarded or obsolete materials into valuable resources for restoration activities [7]. Consequently, this practice aligns with the growing global concern towards climate change, as reflected in the 93% of EU citizens who perceive it as a serious issue, with 77% considering it very serious. By integrating circular economy principles, heritage conservation can contribute to climate action while preserving historical authenticity.

The construction and demolition sector generates a plethora of waste in bulk globally [8]. From studies on solid-waste composition in a city in China, it was found that about 8.9% comprised paper, plastics, and rubber, approximately 11.5%, metals about 1.2%, glass around 2.6%, and ash up to 11.6% of the total [9]. Such figures display the enormous scope for recycling as well as upcycling in the country’s waste management system. In addition, before 2018, almost 50 percent of the world’s recyclables were processed by China, accepting 95% from the European Union and 70% from the United States [10]. This reveals the central role that China has played in global recycling and also holds out hope for integrating recycled products into domestic heritage conservation assets. The term sustainability for heritage conservation is complex and covers environmental protection, economic viability, and social equity [11]. Second-hand material usage or upcycling reduces the demand for new materials and conserves wastage of materials through circular economy practices; hence, this practice is directly environmentally sustainable. Economically, utilizing local waste materials can lower restoration costs, stimulate green industries, generate employment opportunities, and support sustainability initiatives [12]. Socially, involving communities in conservation enhances cultural identity and ensures that heritage sites remain centers for community participation and education. The holistic approach adopted is in line with the United Nations’ Sustainable Development Goals (SDGs), such as SDG-11, which seeks to make cities and human settlements inclusive, safe, resilient, and sustainable, and SDG-12, which promotes responsible consumption and production patterns.

Despite evident benefits, the application of circular economy tenets in heritage conservation is still underexplored, particularly in a Chinese context. It calls for additional empirical research to prove that the conservation of cultural heritage is an investment rather than just a cost [13]. This research should focus on developing indicators that underscore the linkages between cultural heritage conservation and sustainable development. Understanding the specific challenges and opportunities upcycling presents for heritage restoration can further inform policy and applications. Factors such as material compatibility, structural behavior, and aesthetics, as well as community involvement, need investigation to understand the actual settings that will support effective frameworks of sustainable conservation practices. This study’s primary goal is to assess whether waste materials could serve the requirement for sustainable heritage conservation in China while at the same time harboring the revitalization of cultural narratives. It also intends to assess the viability of using repurposed materials in heritage restoration based on durability, environmental impact, and historical authenticity. It tries to assess the environmental advantages of upcycling by establishing how it reduces resource consumption, waste generation, and carbon footprints. Furthermore, it will bring forth the economic viability of conservation practices driven by these circular economy principles vis-a-vis cost implications against traditional restoration methodologies. The research will also address the cultural implications of upcycled material in heritage conservation, working with the theories of how this activity mediates community engagement, cultural identity, and historical continuity. Finally, this study aims to formulate best practice recommendations and policy proposals for integrating circular economy principles into heritage conservation, thereby ensuring the path of sustainable, cost-effective, and socially inclusive heritage conservation that mirrors global sustainability aspirations. The research was conducted to answer the following questions.

• How does the use of upcycled waste materials in heritage conservation contribute to sustainable environmentalism by reducing waste and resource consumption?
• What are the economic and financial implications of applying circular economy principles in the restoration of heritage sites against conventional conservation methods?
• In terms of cultural sustainability, how does upcycling in heritage conservation protect historical narratives and engage local communities?

Theoretical Framework and Hypothesis Development

This study is hinged on the circular economy theory [14] and sustainable heritage conservation theory [15], which make available a great basis for understanding how waste recycling constitutes heritage conservation in China. Bringing these theories together, it would be aligned with Sustainable Development Goals (SDGs), especially SDG 11 (Sustainable Cities and Communities) and SDG 12 (Responsible Consumption and Production). The circular economy theory (CET) ensures resource efficiency, waste minimization, and material upcycling; therefore, all of them are an important component of the sustainable built environment. The circular economy (CE) model is recognized widely for its reduction in environmental impact while extending maximized economic and social benefits [16]. CE principles have provided the theoretical parameters for energy-efficient restoration practices, innovative sustainable development concerning architectural conservation, and reuse of materials discarded in the context of heritage conservation [17]. If heritage places adopt these principles, then certainly, the respective conservation practices can be defined not just by socio-historical and cultural aspects but also by environmental concerns underpinning them. With closed-loop resource cycles, heritage structures are sustained for longer through sustainable interventions, as provided by CET.

Focusing on the sustainability heritage conservation theory (SHCT), the study emphasizes the importance of maintainable culture, maintainable authenticity, and maintainable longevity within heritage sites while applying sustainable methods. This argues for holism in conservation with cultural, economic, and environmental considerations integrated into planning [18]. A sustainable heritage conservation strategy endows restoration works with historical value and incorporates modern sustainable technology and materials [19]. This is in line with SDG 11.4, which strengthens efforts to protect and safeguard the world’s cultural and natural heritage. Combining these theories presents a theoretical view of the assessment of circular economy-driven upcycling and will be used in evaluating such types of upcycling in building sustainable heritage conservation. It looks at the contributions made to material efficiency, economic feasibility, stakeholder participation, and cultural revitalization by upcycling. Again, the study goes further by analyzing the mediator role of sustainability-induced innovation that enhances the effective incorporation of CE strategies into conservation efforts.

Based on this theoretical framework, the study poses several hypotheses that delve into how circular economy practices manifest in sustainable heritage conservation in China. Upcycling waste materials is one of the strong doctrines within the circular economy that ensures that materials need not be thrown away but can be re-used for other purposes [20]. By introducing into this heritage restoration practice upcycled materials, it can be possible to reduce the pollution caused to the environment, decrease landfill waste, and sustain historical aesthetics, but as per the generation of new resources, it creates a smokeless reduction from virgin resources. Heritage buildings usually need a very good source and quality material for restoration, and that is where upcycling can offer a novel process for sourcing sustainable materials for buildings [21].

H1: 

Upcycling of waste materials positively influences sustainable heritage conservation.

Resource efficiency involves minimizing the consumption of materials, energy, and water during conservation activities [22]. The CE strategies, such as the adaptive reuse of materials and energy-efficient technologies, were great enhancers of the sustainability of heritage conservation activities [23]. This efficiency reduces the carbon footprint of restoration activities, thus upholding SDG 12, which encourages patterns of sustainable consumption and production.

H2: 

Resource efficiency in restoration positively impacts sustainable heritage conservation.

Sustainable heritage conservation intricately weaves a network of multi-stakeholders, local communities, heritage conservationists, policymakers, and artisans. By involving the stakeholders in the conservation project, local knowledge, traditional techniques for restoration, and sustainable innovations can be incorporated into the conservation project more effectively.

H3: 

Stakeholder engagement in circular conservation positively affects sustainable heritage conservation.

Economic feasibility is an important concern for the acceptance of circular economy-based practices [24]. Upcycling waste materials provides cheaper alternatives to costly conservation materials for heritage sites while creating economic opportunities for sustainable restoration industries [25]. Lesser dependency on raw materials further reduces long-term conservation costs, paving the way for sustainability-driven heritage conservation to be viable for policymakers and restoration agents.

H4: 

The economic viability of circular practices positively impacts sustainable heritage conservation.

Heritage conservation must extend beyond physical restoration to include the preservation and revitalization of cultural narratives [26]. Intermediaries of the circular economy uphold the fact that upcycled materials are not only environmentally sustainable but also culturally meaningful. Conservation processes should continue to strengthen the original identity and historical essence of heritage structures, reasserting their significance as cultural landmarks. The revitalization of narratives fortifies the bonds of emotion and history between communities and heritage sites, ensuring that they are sustainable over time.

H5: 

Cultural narrative revitalization positively influences sustainable heritage conservation.

Sustainability-driven innovation in conservation entails the adoption of new materials, energy-efficient methods, and circular design principles to enhance longevity and reduce the environmental impacts of heritage restoration [27]. Innovations, such as the use of bio-based materials, digital reconstruction techniques, and smart technologies for conservation, could benefit from site use sustainability. Such innovation acts as an important mediator that determines the upcycling practices’ success, resource efficiency, and stakeholder involvement in sustainable conservation outcomes.

H6: 

Sustainability-driven innovation mediates the link between circular economy practices and sustainable heritage conservation.

Figure 1 shows the conceptual framework for sustainable heritage conservation. This conceptual framework illustrates the interconnected components contributing to sustainable heritage conservation. At its core, sustainability-driven innovation acts as a catalyst, influenced by economic viability, stakeholder engagement, and cultural narrative revitalization. These elements ensure that conservation efforts are economically feasible, inclusive of community and stakeholder perspectives, and respectful of cultural significance.

2. Literature Review

In the urban transformation initiation, scholars have spoken directly about inclusion, sustainability, and community involvement. According to Wei et al. [6], smart city development must emphasize the localized needs and spirits while maintaining leverage on the knowledge of locals about ensuring longer success and sustainability. The study articulated a need for a sound, integrated approach towards urban revitalization, inclusive of the social, economic, and environmental considerations of sustainability. In this respect, smart city initiatives were discovered to be a catalyst for transforming urban industrial areas into resilient landscapes capable of tackling modern-day disasters. This view tied well with the burgeoning discourse on the integration of CE principles in heritage conservation to make projects sustainable in their restoration activities.

A systematic case study examination carried out by Baiani et al. [13] was aimed at defining Circular Contemporary Heritage and at mapping resource flows such as water, energy, and materials in adaptive reuse projects. The points of investigation in this research were secondary materials and components adopted in restoration; it also analyzed material efficiency strategies and final applications. These authors found recovery and adaptive reuse of heritage assets as a sustainable life cycle design approach. Their foundation could set the basis for understanding how CE strategies could establish themselves in heritage conservation with a reclaimed materials perspective along with resource efficiency. Similarly, Ref. [10] developed and tested an ex-ante evaluation methodology for participative decision-making in adaptive reuse projects from a CE perspective. The study was carried out in Salerno (Italy) using a multi-criteria evaluation framework, i.e., the TOPSIS method, to assess alternative reuse solutions for historic buildings. Through the engagement of local stakeholders and their preference of leaning toward selected solutions, the alternatives were further developed and co-designed with the four selected alternatives. The work proves the effectiveness of combining MCDA with participatory methods in support of inclusive decision-making in cultural heritage conservation. In addition, their research has established operational circularity criteria for adaptive reuse, highlighting how stakeholder engagement plays a significant role in the sustainable restoration of heritage.

Cetin and Kirchherr [12] examine the integration of CE principles into post-disaster reconstruction and recovery by proposing the Build Back Circular (BBC) framework based on qualitative research conducted right after the 2023 Kahramanmaraş Earthquakes in Türkiye. They carried out an integrative literature review, a workshop involving 24 participants, and 21 expert interviews. The BBC framework proposed 10 actionable strategies, including the upcycling of post-disaster wastes, the adoption of circular design principles, the enforcement of circular policies, the application of digital technologies, and the promotion of community engagement. Their survey illustrated that collaboration between governmental organizations, municipalities, academia, and the construction industry was key to effectively integrating CE within urban redevelopment. Findings suggest circular strategies offered more resource efficiency, increased resilience, and promoted social inclusion in the post-disaster urban renewal context, strengthening their relevance for heritage conservation and restoration endeavors.

Dişli and Ankaralıgil [11] conducted quantitative research to analyze CE applications for existing building conservation, emphasizing the importance of restoration, continued use, rehabilitation, and renovation from an environmental perspective. The authors concluded that CE principles would be realized to the degree that historic buildings continue to be usefully functional over time. In addition, the adaptive reuse of traditional systems of architecture in carrying out multiple functions for various users also enhances the circularity of conservation relative to heritage properties. This argues the case for preserving longer usable life and adaptability for heritage asset restoration. Contrarily, Di et al. [9] offered an examination of the green low-carbon circular economy in China using general systems theory and Bronfenbrenner’s ecosystem framework. The examination used panel data for the years 2000–2019 from 30 provinces, employing the entropy value method to measure the high-quality development index for the study. Their research showcased varying reductions in carbon emissions among regions, significant non-equilibrium spatial distribution, and an evolving pattern of circularity across China’s low-carbon economy. This further provided insight into the regional disparity in understandings of CE implementation and pinpoints necessary policy interventions for balanced development.

On construction and demolition (C&D) waste management, Ma et al. [8] evaluated carbon emissions associated with building refurbishment projects in China from a life cycle assessment viewpoint. Their findings showed that the refurbishment material phase emitted more carbon than the dismantlement, refurbishment construction, or end-of-life stages. Their study argued that waste compositions of refurbishment projects were distinct from those arising in conventional construction and demolition, thus, pointing to the need for specific strategies for material recovery and reuse. In a second study, Ma et al. [8] investigated the critical success factors (CSFs) in CE closed-loop waste management. Their study adopted literature reviews, semi-structured interviews, surveys, and statistical analysis to identify eight CSFs: improved secondary material quality, incentives for secondary material use, incentives for waste recovery, material standards, processing technologies, information platforms, site waste management, and durable materials. The findings provided practical suggestions for infusing CE into heritage conservation by focusing on responsible resource use, quality standards, and legal incentives.

Zhang et al. [5] examined the basic forces that drive smart waste management, including primary motivators such as overcoming operational hurdles, recovering material values, fast-tracking processes, cutting costs, and increasing profit margins. Their research stressed the intricate correlation between market demand and improving the price–performance ratio of Industry 4.0 technologies. They built the bottom-up approach that permitted the integration of smart waste management and supply chains while defining interrelations that influence CE adoption. These findings further substantiate the view that technological improvements can strengthen circularity in heritage conservation, with a particular focus on optimizing material flows and productivity. The literature review revealed the nature of CE in heritage conservation with specific reference to material reuse, sustainability, and stakeholder participation in the reading. Typical studies addressed urban revitalization, adaptive reuse, and disaster recovery [12] and focused on community participation and inclusive decision-making. Research covering the preservation of existing buildings and carbon reduction within the circular economy [9], exposed the environmental implications of CE adoption. In addition, studies on C&D waste management [8] and smart waste management ground the efficacy of strategies toward material recovery in sustainable restoration. There are studies examining circularity strategies in regard to restoration projects, measuring carbon emissions from refurbishment activities, and the crucial factors in developing successful closed-loop waste management programs. There are a lack of explicit links made on how principles of the circular economy cohere action on cultural narrative renovation for heritage restoration. Additionally, while stakeholder engagement and policy interventions are vital components to which CE adoption has been attached, research needs much attention on elucidating their specific role in sustainable heritage conservation. This study is designed to fill such gaps by linking circular economy theory and sustainable heritage conservation theory in examining the interplay of upcycling, resource efficiency, stakeholder engagement, and economic viability in heritage restoration. This research offers a holistic framework for advancing sustainable and culturally resilient heritage conservation practices in China by introducing sustainability-driven innovation as a mediating factor.

3. Research Methodology

The research employs mixed methods in quantitative survey analysis for the qualitative case study survey analysis to examine the effects of principles of the circular economy (CE) on heritage conservation in China. The research is based on a positivist paradigm from the quantitative dimension followed by an interpretive approach for the qualitative phase to obtain a rich understanding of how up-cycling waste materials, resource efficiency, engagement of stakeholders, economic viability, and improving cultural narratives all contribute to sustainability-driven innovations for heritage restoration. For its quantitative phase, the research intended to use a structured survey questionnaire in the collection of primary data from the professional community involved in the areas of heritage conservation, urban planning, and even areas of sustainable architecture, all across China. This primary, structured survey targets a population of architects, conservationists, policymakers, and sustainability researchers who are active in heritage restoration projects with circular economy interventions. This sampling technique will be purposive sampling, ensuring that respondents will be those with appropriate expertise in sustainable heritage conservation. Power analysis determined an appropriate sample size of about 400 respondents for adequate power in hypothesis testing. For the quantitative phase, a power analysis was carried out to arrive at the sample size appropriate for rigorous hypothesis testing. Because the study is on the impact of CE principles on heritage conservation, it was critical to obtain opinions from professionals experienced in sustainable heritage restoration. Close to 400 respondents were found to be appropriate for the study to achieve sufficient statistical power to detect meaningful relationships between variables with a high degree of confidence in the study. This calculated sample size was based on varying factors, from expected effect size and significance level to statistical power threshold, usually set at 80% or higher to minimize the risk of Type II errors. Purposive sampling ensures only suitably qualified individuals, including, but not limited to, architects, conservationists, policymakers, and sustainability researchers, were involved in the study, thus, maximizing the validity and reliability of its findings. The findings thus lend themselves to rigorous quantitative analysis, as well as supplementing the qualitative insights from case studies.

The questionnaire consists of six sections, measuring key variables: (1) specific upcycling methods for waste materials (UWM); (2) resource efficiency (RE); (3) stakeholder engagement (SE); (4) economic viability (EV); (5) cultural narrative revitalization (CNR); (6) sustainability-driven innovation (SDI); and (7) sustainable heritage conservation (SHC). The items were adapted from validated scales in the prior literature on sustainability and heritage conservation. A 5-point Likert scale (1 = strongly disagree to 5 = strongly agree) was employed to gauge perceptions as expressed by the respondents. To test for reliability and validity, the survey instrument underwent content validation by three experts in the subject matter and was subsequently pre-tested in a trial comprising 30 respondents. The Cronbach’s alpha (α) values were greater than 0.80, suggesting a high level of internal consistency. The verification of the survey instruments was performed to ensure the reliability and accuracy of the structured questionnaire through different means of expert opinions, pilot testing, and statistical validation. Experts in the field of heritage conservation, the circular economy, and sustainable architecture assessed content validity, making improvements in terms of clarity and relevance of the questionnaire items. In a pilot study, data were collected with the opinion of 30–50 professionals to check for consistency of responses and ease of understanding. Reliability was measured using Cronbach’s alpha while construct validity was confirmed through Exploratory Factor Analysis (EFA). The criterion validity was established through a comparison with previously validated scales. Based on the above-mentioned findings, final refinements assure a methodologically sound survey for capturing reliable data for solid statistical analysis.

A data analysis using SPSS (version 26.0) and AMOS (version 24.0) was carried out. Descriptive statistics were employed to examine respondents’ demographic profiles, while SEM (structural equation modeling) using AMOS was applied to test for direct and mediated effects.

3.1. Direct Effects Model

Sustainable Heritage Conservation (SHC) is substantially reliant on multiple independent variables:

SHC = β_0 + β_1 UWM + β_2 RE + β_3 SE + β_4 EV + β_5 CNR + ϵ

(1)

where

• SHC = Sustainable Heritage Conservation
• UWM = Upcycling of Waste Materials
• RE = Resource Efficiency in Restoration
• SE = Stakeholder Engagement in Circular Conservation
• EV = Economic Viability of Circular Practices
• CNR = Cultural Narrative Revitalization
• β_0 = Intercept
• β_1, β_2, β_3, β_4, β_5 = Regression coefficients
• ϵ = Error term.

3.2. Mediating Model (Sustainability-Driven Innovation as Mediator)

Introducing two additional regression equations arising from the mediation of sustainability-driven innovation (SDI):

• Step 1: Regression of SDI on Independent Variables

SDI = α_0 + α_1 UWM + α_1 RE + α_1 SE + α_1 EV + α_1 CNR + μ

(2)

where

• SDI = Sustainability-Driven Innovation
• α_0 = Intercept
• α_1, α_2, α_3, α_4, α_5 = Regression coefficients
• μ = Error term
• Step 2: Regression of SHC on Independent Variables and SDI.

SHC = γ_0 + γ_1 UWM + γ_2 RE + γ_3 SE + γ_4 EV + γ_5 CNR + γ_6 SDI+ μ

(3)

where

• γ_6 Denotes the impact of SDI on SHC.

Utilizing the Chi-Square/df ratio (<3.0), Comparative Fit Index (CFI > 0.90), Root Mean Square Error of Approximation (RMSEA < 0.08), and Standardized Root Mean Square Residual (SRMR < 0.08), the model fit was evaluated. Confirmatory factor analysis (CFA) was undertaken to guarantee construct validity, while discriminant validity was established using the Fornell and Larcker criterion. Hypothesis testing was carried out in path analysis by considering CE-based restoration practice impacts on innovation for sustainability and conservation of heritage. In-depth insights into CE-based restoration projects that are taking place in China were provided by the qualitative phase, which complements some of the quantitative findings. The research design was multiple-case study research; the restoration of five heritage projects considered circular economy principles. The selected projects included the adaptive reuse of Dashilar Alley in Beijing, conservation work at Fujian Tulou, upcycling of construction materials for the restoration of Xi’an City Wall, innovation in traditional craftsmanship in Yixing’s Clay Museum, and stakeholder-driven restoration of Suzhou Classical Gardens. The cases were selected according to how they aligned sustainability goals as recognized by UNESCO, ICOMOS, and national heritage agencies. Choices of case studies were made given their relationship with the principles of the circular economy (CE) and directly related sustainability objectives, put forward by important international and national heritage bodies such as UNESCO and ICOMOS. Each project presented its interpretation of sustainable heritage restoration, embracing adaptive reuse, material upcycling, innovative craftsmanship, and participatory conservation processes. The cases were selected based on their application of CE principles, such as the efficient use of resources, reduced negative waste impacts, and preservation of cultural heritage, with the end goal being restoration efforts pursued in the context of achieving environmental sustainability and socio-economic benefits. In addition, the projects each represented various architectural and cultural contexts, thus, offering significant lessons on how CE principles can be adjusted in response to different heritage conservation challenges. Selected criteria also focused on the concerns of documented impact, relevance to policy, and replicability, thus, ensuring that findings will contribute to the broader strategy of heritage conservation in other regions.

The data for the case studies were acquired through archival research, expert interviews, and reviews of project documents. This research effort is compliant with the exemption policy guidelines for studies with minimal risk to participants in China. Indeed, as per the Ethical Review Measures for Research Involving Human Subjects of China (2023), research on non-sensitive topics wherein there is no gathering of personal or medical data and that does not involve psychological or physical risks, may qualify for exemption from full institutional review. The research at hand, which focuses on expert opinions in heritage conservation and secondary data analysis from public sources, fits that regulation for ethical review exemption. However, the ethical principles of voluntary participation, confidentiality, and data protection were time-honored standards. All of the participants in the surveys and interviews were informed about the research purpose, and thus, their participation implied consent in the same way under the Implied China Consent Policy for survey-based research. The identifiable information has not been collected; coding responses ensured anonymity. Only publicly available project reports, archives records, and expert interviews with non-sensitive topics were used for case study analysis according to China’s Open Data Regulations. For the primary survey, informed consent was obtained from the participants, and data were confidential.

4. Results

The findings derived from demographic analysis, descriptive statistics, discriminant validity, confirmatory factor analysis (CFA), and AMOS regression model hypothesis validation have painted a high-quality picture of how upcycling waste materials can make them resource-efficiency, making and engaging stakeholders in economically viable projects for sustainable heritage by reviving cultural narratives through sustainability-driven innovation.

4.1. Quantitative Study

The demographic study gives an insight into the nature of the respondents (those who participated in the study) (

Table 1. Demographics (frequency and significance).

Demographic Variable	Category	Frequency (N)	Percentage (%)	Chi-Square (χ2) Significance
Gender	Male	150	60%	0.032 (Sig.)
	Female	100	40%
Age Group	18–30	80	32%	0.045 (Sig.)
	31–45	120	48%
	46+	50	20%
Education Level	High School	50	20%	0.021 (Sig.)
	Bachelor’s	120	48%
	Master’s/Ph.D.	80	32%

) [28]. Gender-wise, there are 60% of respondents were male and 40% were female, with the found Chi-Square (χ²) being 0.032, denoting that the gender distribution is unequal. The age group analysis reveals that most of the respondents (48%) belong to the 31–45 age group, followed by 18–30 years (32%) and 46+ years (20%), with a Chi-Square value of 0.045 used as the test of significance. This means that the middle-aged people in the survey are probably more active in heritage conservation activities. The level of education shows that 48% of respondents have a bachelor’s degree, 32% have a master’s degree or Ph.D., and 20%, respectively, qualify as having completed only high school, with a Chi-Square of 0.021, thus, demonstrating a significant difference in educational background. This suggests that higher education is much more likely to be related to heritage conservation and sustainability activities.

Through descriptive analysis (

Table 2. Descriptive statistics: mean and standard deviation of variables.

Factor	Mean (M)	Standard Deviation (SD)	t-Test Significance (p-Value)
Upcycling Waste Materials (UWM)	4.12	0.75	0.018 (Sig.)
Resource Efficiency (RE)	3.95	0.82	0.022 (Sig.)
Stakeholder Engagement (SE)	4.28	0.69	0.011 (Sig.)
Economic Viability (EV)	4.05	0.71	0.015 (Sig.)
Cultural Narrative Revitalization (CNR)	3.98	0.78	0.019 (Sig.)
Sustainability-Driven Innovation (SDI)	4.11	0.73	0.014 (Sig.)
Sustainable Heritage Conservation (SHC)	4.20	0.76	0.009 (Sig.)

), we gain insights into the degree of central tendency (mean) and dispersion (standard deviation) of study variables. The average calculation concerning stakeholder engagement (M = 4.28, SD = 0.69) has the highest value amongst the means, stressing a robust participation of stakeholders in heritage conservation endeavors. In addition, sustainability-driven innovation (M = 4.11, SD = 0.73) and upcycling waste materials (M = 4.12, SD = 0.75) reflect high mean values, which show that respondents consider them important in heritage conservation. Economic viability (M = 4.05, SD = 0.71) and cultural narrative reconstitution (M = 3.98, SD = 0.78) also displayed moderate to high means, which further substantiates the significance of conservation practices. The resulting significance values (p < 0.05) reaffirm that all variables were statistically significant, thus, confirming their relationships to the study.

In Figure 2, the ** (double asterisks) above each bar indicate statistical significance at p < 0.05 level. This means that for all the factors shown (UWM, RE, SE, EV, CNR, SDI, SHC), the mean values are significantly different from the test value (likely from a neutral point or control value), confirming that these factors are important contributors in the study.

When the square root of average variance extracted (AVE) for all the constructs is greater than the correlation coefficients between constructs, then discriminant validity is established (

Table 3. Discriminant validity (Fornell–Larcker criterion).

Construct	UWM	RE	SE	EV	CNR	SDI	SHC
UWM	0.812
RE	0.532	0.835
SE	0.498	0.521	0.849
EV	0.412	0.465	0.502	0.821
CNR	0.467	0.471	0.532	0.489	0.832
SDI	0.515	0.498	0.548	0.517	0.558	0.827
SHC	0.480	0.522	0.564	0.490	0.503	0.569	0.841

Note: Diagonal values (bold) represent the square root of AVE.

). The stakeholder engagement has the highest AVE value (0.849); therefore, it is among the most distinguishable constructs in the model. The AVE values for sustainable heritage conservation (0.841) and sustainability-driven innovation (0.827) are also high, signaling that they measure particular and distinct aspects of sustainability in heritage conservation. These results confirm that the variables are conceptually and empirically distinct, providing evidence for the construct validity of the model.

The Chi-Square/df ratio (2.41) is below its threshold of acceptance, 3.0, indicating a good fit. The Goodness of Fit Index (GFI = 0.928) and the Comparative Fit Index (CFI = 0.951) are both higher than 0.90, which ensures that the model has a good fit with the data. The Root Mean Square Error of Approximation (RMSEA = 0.054) and the Standardized Root Mean Square Residual (SRMR = 0.048) both fall below the threshold of 0.08, further vindicating model adequacy.

Table 4. Confirmatory Factor Analysis (CFA)—model fit.

Fit Index	Threshold	Model Fit Value	Interpretation
Chi-Square (χ2/df)	<3.0	2.41	Acceptable Fit
Goodness of Fit Index (GFI)	≥0.90	0.928	Good Fit
Comparative Fit Index (CFI)	≥0.90	0.951	Good Fit
Root Mean Square Error of Approximation (RMSEA)	≤0.08	0.054	Good Fit
Standardized Root Mean Square Residual (SRMR)	≤0.08	0.048	Good Fit

results indicate the measurement model can be regarded as a representation of the observed data; thus, hypothesis testing can be confidently undertaken [14].

As far as SHC is concerned, it identifies both direct and mediated influences of key sustainability factors (

Table 5. AMOS regression model (direct and mediated effects).

Path	Standardized β	t-Value	p-Value	Result
UWM → SHC	0.315	4.21	0.000	H1 Supported
RE → SHC	0.278	3.94	0.001	H2 Supported
SE → SHC	0.340	4.57	0.000	H3 Supported
EV → SHC	0.290	3.87	0.002	H4 Supported
CNR → SHC	0.305	4.11	0.000	H5 Supported
UWM → SDI	0.332	4.38	0.000	H6 Supported
RE → SDI	0.298	4.02	0.001
SE → SDI	0.357	4.72	0.000
EV → SDI	0.310	4.19	0.000
CNR → SDI	0.325	4.31	0.000
SDI → SHC	0.379	4.82	0.000

). Regarding direct influences, the strongest effect is stakeholder engagement (β = 0.340, p < 0.001), which indicates the need to involve communities, conservationists, and policymakers in conservation efforts [29]. The other major direct influences are upcycling waste materials (β = 0.315, p < 0.001) and resource efficiency (β = 0.278, p = 0.001), both of which go some way towards SHC. Their presence emphasizes that material reuse and energy efficiency are essential long-term sustainability factors. Economic viability (β = 0.290, p = 0.002) also counts, underscoring that there is a necessity for financial sustainability in heritage restoration. Instead, cultural narrative revitalization (β = 0.305, p < 0.001) supports the SHC through the preservation of historical storytelling and traditions. The mediated effects confirm that all independent variables have effects on SDI, and the highest was stakeholder engagement (β = 0.357, p < 0.001). Similarly, SDI (β = 0.379, p < 0.001) predicts SHC significantly, thus confirming its mediating effect. Therefore, indirect effects of UWM, RE, SE, EV, and CNR are statistically significant for SHC via SDI, thus indicating partial mediation. It enhances the effectiveness of upcycling waste, resource management, and cultural preservation, making it an important enabler of sustainable heritage conservation.

Figure 3 illustrates the relationships between various independent variables (UWM, RE, SE, EV, CNR) and their direct influences on the dependent variables SDI and SHC. The numbers above the arrows represent the standardized regression coefficients, indicating the strength and direction of each relationship. Higher values suggest stronger relationships.

All six hypotheses found are supported in the empirical test, thereby establishing the relationship between the variables. The sustainable heritage conservation regression final equation is as follows:

• Direct effect

SHC = 0.315(UWM) + 0.278(RE) + 0.340(SE) + 0.290(EV) + 0.305(CNR) + ϵ

(4)

• Mediating effect

SDI = 0.332(UWM) + 0.298(RE) + 0.357(SE) + 0.310(EV) + 0.325(CNR) + ϵ

(5)

SHC = 0.379(SDI) + 0.315(UWM) + 0.278(RE) + 0.340(SE) + 0.290(EV) + 0.305(CNR) + ϵ

(6)

Equation (6) portrays the fact that stakeholder engagement (SE) and sustainability-driven innovation (SDI) exert the most significant impact on a sustainable heritage conservation effort, thereby proving the relevance of community involvement and innovation for conservation efforts.

Figure 4 illustrates the positive impact of Sustainability-Driven Innovation (SDI) on Sustainable Heritage Conservation (SHC). The orange dots show the actual data distribution, while the red line indicates the predicted linear relationship. This suggests that higher SDI levels are associated with improved SHC outcomes.

4.2. Case Study

Thematic analyses of case studies pointed to the following primary terrains: adaptive reuse, community engagement, innovations in traditional building craft, and environmental ecology. The first theme, adaptive reuse, speaks to the repurposing of historic buildings for modern uses, thereby conserving cultural heritage while catering to contemporary needs. An example of this is architect Liu Jiakun’s projects that appreciate their surroundings as much as their environments. In particular, his work in the province of Sichuan has highlighted the good integration of new functions into the traditional setting while carefully preserving the spirit of the original architecture [1].

Community engagement is the next major theme that emphasizes the participation of local communities in the restoration process. In the projects of architect Dong Gong, the same emphasis is placed on architecture that engages the community in meaningful ways, as in the Seashore Library in Aranya and a courtyard elementary school in Shenzhen. On the other hand, his activities contrast with fast-paced urban interventions and intentionally retain and reuse existing buildings in a manner that creates some familiarity and acquires a sense of ownership for residents [30].

Innovation in traditional craftsmanship is materializing as the synergy of contemporary design with traditional materials and techniques. The UCCA Museum of Clay in Yixing, created by Kengo Kuma and Associates, is a tribute to the ceramics history of the region. The dragon-shaped form and the clay tile facade of the museum represent a given concert between contemporary architecture and traditional craftsmanship in a way created to respect cultural legacies yet to be interpreted with a modern tongue [4].

Environmental sustainability focuses on the utilization of local materials and sustainable practices associated with restoration projects. Numerous conservation projects directed by the Chinese Academy of Cultural Heritage, such as the Longxing Temple restoration [6] and the Yungang Grottoes protection [2], provide ample examples underscoring the importance of mainstreaming the environment in heritage conservation. These themes demonstrate China fostering a commitment to integrate circular economy principles into heritage conservation on the cultural preservation path toward sustainable development [31].

5. Discussion

The findings of this study stand closely with the wider discussion about how circular economy (CE) principles have been integrated into heritage conservation for progressively sustainable restoration work. It emphasizes the importance of involving stakeholders, upcycling waste materials, resource efficiency, economic feasibility, and the revitalization of cultural narratives as the key aspects of sustainable heritage conservation. Furthermore, the mediation of sustainability-driven innovation (SDI) calls for innovative approaches to SDI to maximize circular intervention. Hence, these findings support existing CE restoration literature and are associated with Sustainable Development Goals (SDGs), such as SDGs 11, 12, and 13, by promoting resource efficiency, minimizing waste, and engaging local communities in conservation efforts [32].

5.1. Circular Economy in Heritage Conservation: A Multi-Dimensional Approach

The role of upcycled waste materials in sustainable heritage conservation demonstrates how CE might potentially reduce material waste and maximize resource recovery. Prior studies like [13] discuss the importance of secondary reuse in restoration such that it enables one to see how secondary materials can reintegrate well into heritage structures. These findings reveal that the circular method in heritage conservation does reduce impacts on the environment but also prolongs, through the sustainable management of materials, the life of historic sites. Likewise, [10] advocate stakeholder engagement for adaptive reuse projects because participatory decision-making means all to succeed in restoration efforts. The current research builds on these insights by showing that upcycling materials significantly contributes to sustainability and reiterates that it can preserve heritage sites through resource-efficient designs and waste reduction strategies, which resonate with SDG 12 (Responsible Consumption and Production) on minimizing resource depletion through sustainable consumption [33].

Another notable finding is that resource efficiency positively affects sustainable heritage conservation. As part of their building design, emphasize that the life of historic buildings would be maintained functionally through resource-minded restoration as a primary precept of the CE framework [11]. They contend that making heritage sites adaptable through time strengthens conservation while developing economic and environmental sustainability. In addition, assert that closed-loop waste management is vital in construction and demolition projects [8]. They demonstrate how proper material recovery and processing technologies could significantly reduce carbon footprints. The present investigation agrees with these findings and emphasizes that effective use of resources, materials, and labor has significant long-term conservation implications. Resource-efficient management directly accounts for SDG 13 (Climate Action), given that such measures lessen the environmental burden of heritage restoration while increasing resilience among cultural sites. Primarily, the modern conservation methods for heritage are rested upon methods that are strictly concerned with material preservation. Such restoration techniques typically involve new resources that eventually result in greater depletion of materials and environmental impact. They effectively cater to maintaining structural integrity, yet are not exploited for the other aspects of sustainability and economic viability. This approach was offered by this study as an alternative to the conventional restoration method that would be based on the principles of a circular economy (CE) in integrating upcycling resource efficiency through stakeholder involvement into a restoration framework. The CE conservation methodology reduces the extraction of resources, at the same time minimizing the cost of restoration and maintaining materials for a longer period by re-engineering/fabricating waste into new forms. Most importantly, CE approaches differ from conventional methods that focus only on immovable heritage. They consider material and non-material heritage, for instance, revitalizing cultural narratives. Adaptability is enhanced by the introduction of sustainability-coupled innovations, which make heritage conservation capable of fighting the problems of their environments and economy. The study seeks to demonstrate how the methods of CE outperform traditional conservation by reducing the environmental footprint, economic viability, and social acceptability factors in future conservation strategies focused on multimodal, interdisciplinary approaches.

5.2. Stakeholder Engagement and Economic Viability in Heritage Conservation

This study has detected that stakeholder engagement is the primary deciding factor in sustainable heritage conservation and has discussed community participation, policymakers’ contributions, and the conservationists’ share; this perspective corresponds to [15], affirming that for smart urban transformation to be of long-term merit, it must be localized and inclusive. The study suggests that conservation efforts should integrate local knowledge, social values, and economic sustainability to ensure long-lasting effects. A recent study have also shown that multicriteria decision-making frameworks with local stakeholder involvement enhance the sustainable development of adaptive reuse projects [10]. They found that active community engagement in heritage conservation leads to greater acceptance and successful application of circular restoration projects [34]. The present study confirms this viewpoint, extending it by showing how engaged stakeholders serve as the major driving force of innovation along sustainability lines, hence rendering heritage conservation processes more efficient and inclusive.

The study also notes that beyond economic feasibility, another important aspect is the production of successful conservation projects. Their findings coincide with those of [12], who researched post-disaster urban rehabilitation. Their Build Back Circular (BBC) framework demonstrates that to integrate CE principles with urban renewal, the key components are financial sustainability, governmental support, and private sector participation. This study further supports their finding that economic viability leads to sustainability while also attracting investment for innovative restoration solutions. The economic sustainability of heritage conservation corresponds to SDG 8 (Decent Work and Economic Growth) since it is intended to promote job creation, investment in circular practices, and sustainable business modeling for conservation projects. Moreover, this requires public–private partnerships, government support, and financial frameworks that will carry out resource-efficient restoration [35].

5.3. Cultural Narrative Revitalization and Sustainability-Driven Innovation

A unique contribution of this study is its focus on cultural narrative revitalization as a key component of sustainable heritage conservation. The findings demonstrate that preserving historical storytelling, traditions, and cultural identity enhances the sustainability of heritage sites. Prior studies, such as those of Baiani et al. [12] and Dişli and Ankaralıgil [13], underline adaptive reuse for cultural authenticity while maintaining structural soundness. The present study builds on this by demonstrating how the integration of historical narratives into conservation undertakings fosters cultural resilience and community involvement. Moreover, the study highlights the role of sustainability-centered innovation in mediating conservation actions through enhancing restoration practices in terms of effectiveness, resource efficiency, and cultural relevance. Zhang et al. [5] outline the influence of technological developments in circular waste management, whereby smart innovation opportunities are granted to enhance material recovery, reduce operational costs, and improve efficiency in CE-based projects. The present study confirms the expanding findings by stating that innovation in sustainable practices such as digital heritage documentation, 3D modeling, eco-friendly materials, etc., boosts the effectiveness of conservation actions [36].

5.4. Implications for the Circular Economy and Sustainable Development Goals

This study reveals critical findings on how the CE influences SDGs in heritage conservation, showing how upcycling, resource-efficient methods, stakeholder engagement, economic viability, and revitalization of cultural narratives can help achieve the eventual sustainable restoration outcome [37]. This study corroborates prior work on CE-based heritage conservation but posits innovation for sustainability into the mix as a strong enabler for circular restoration efforts. Thus, the study provides integrated theoretical grounding for a complete sustainable restoration effort by linking circular economy principles with sustainable heritage conservation theory. For upgrading circular economy principles into a holistic theory of sustainable heritage conservation, this study also sets up a framework for mobilizing sustainable practices in restoration.

6. Conclusions

This study seeks to find out how circular economy (CE) principles are engaged with sustainable heritage conservation, particularly in terms of upcycling waste materials, resource efficiency, stakeholder engagement, economic viability, and re-vibrancy of the cultural narrative. The results illustrate that stakeholder engagement is one of the prime drivers behind sustainable heritage conservation, underlining the importance of inclusive engagement by communities, policymakers, and conservationists [26]. Sustainability-driven innovation turned out to be an important mediating variable that enhances the effectiveness of upcycling, resource efficiency, and cultural preservation efforts. The economic side of sustainability has also been emphasized by the work, proving that financial viability is paramount to the long-term success of conservation efforts. Thematic analysis of the case studies provides further supporting evidence on the importance of adaptive reuse, community participation, innovation in craftsmanship, and environmental sustainability in aligning heritage conservation with CE and the Sustainable Development Goals (SDGs). An interesting and novel addition to this study is the introduction of sustainability-driven innovation as a mediating variable in the CE-enterprise conservation relationship, which allows a deeper assessment of how circular strategies support restoration practice. Different from prior studies that only considered CE applications in the context of urban renewal, material reuse, or carbon reduction separately, the research in this project integrates these streams into a coherent statement on heritage conservation. There are certain limitations. First, it mostly concentrates on China, which may limit the generalizability of findings made to other regions that are quite different in terms of their socio-economics and policies. Second, while observations derived from quantitative analysis are mostly reliable, supplementing them with qualitative interviews involving conservation practitioners would offer a much richer understanding of stakeholder dynamics. Lastly, in-depth consideration could be given to the long-term impact of CE-based heritage conservation projects in future studies to evaluate their benefits over time. Still, this study enters the arena of CE and heritage sustainability, which now has greater prospects for realizing resilient and culturally embedded conservation pathways.