1. Introduction
The rapid growth of the global population and increasing demand for resources have intensified the limitations of linear economic models based on the “take-make-dispose” paradigm, leading to severe environmental crises and the depletion of natural resources [
1,
2]. In response, the circular economy (CE) has emerged as a novel, globally adopted development model that promotes responsible and cyclical use (closed-loop usage) of resources [
3], aiming to minimize environmental impacts and enhance socio-economic well-being [
4,
5]. This approach encompasses three primary levels: the micro level (products and consumers), the meso level (industrial parks), and the macro level (cities and larger regions) [
6,
7].
Today, cities and other urban settlements host more than half of the global population and generate approximately 70% of the global GDP, despite occupying only 2% of the total land area [
8,
9]. Cities are not only major drivers of global environmental change but are also particularly vulnerable to its consequences [
10,
11]. Additionally, cities face various socio-economic issues, such as increasing inequalities, unemployment, poverty, and social exclusion [
12].
The CE model is increasingly recognized not only in the context of industrial transformations but also as a promising pathway toward achieving sustainable urban development [
13,
14,
15,
16,
17]. However, despite the growing interest in CE, there remains a lack of a unified framework or definition to assess and evaluate the circularity of cities—key symbols of sustainable urban development—particularly at the macro level [
18,
19]. Existing indicators and frameworks predominantly focus on the micro and meso levels, while the macro level, due to its complexity and varied evaluation dimensions, requires specific frameworks and indicators tailored to cities and large urban regions [
20,
21,
22].
The core principles of the CE, which are mentioned in
Table 1, provide a foundational framework for developing CE-based urban economic models. These principles, often referred to as the “R” principles, are designed to retain the value of materials within consumption cycles, promoting extended use and durability [
23,
24].
Scholars have explored how CE principles can be adapted at the city level, conceptualizing circular cities from various perspectives (e.g., [
8,
37,
43,
44,
45]). This framework empowers cities with the capacity and determination to drive the shift toward a more sustainable and resilient future [
23]. However, CE principles are interpreted and applied differently across regions and stakeholders, often influenced by specific local interests and priorities [
6,
14,
26,
36,
39].
At the policy level, CE frameworks are essential for achieving Sustainable Development Goals (SDGs), as they provide effective tools for urban-scale challenges, such as pollution reduction, resource conservation, and socio-economic improvements. For example, the European Union, China, and countries such as Australia, have developed comprehensive CE policies and roadmaps aimed at fostering sustainable and resilient urban development. Notably, China was among the first countries to adopt a formal strategy for CE through its Circular Economy Promotion Law (2009), which serves as a legislative framework for implementing CE principles at multiple levels [
46,
47,
48,
49]. Despite these efforts, the approach remains far from a comprehensive, unified framework. Different countries are exploring these principles in various ways, each adapting CE frameworks to meet local needs, limitations, and ambitions. This important issue emphasizes the need for frameworks based on integrated and comprehensive indicators, which, with a focus on innovation and advanced technologies, not only reduce pollution, alleviate environmental pressures, and improve resource management, but also contribute to sustainability and enhance the quality of urban life [
5,
25,
50]. A circular city is defined as an urban environment that systematically integrates CE principles to create sustainable, closed-loop systems. These cities aim to retain materials and resources within the urban cycle, minimizing waste and reducing environmental impacts [
10,
51,
52]. Fundamentally, a circular city supports regenerative and self-sustaining operations, emphasizing local resources, stakeholder collaboration, and resilience—collectively reducing environmental harm and promoting sustainability. Circular cities actively engage stakeholders, including citizens, businesses, and municipal bodies, in building resilient urban systems that prioritize resource longevity and circular design. According to Prendeville et al. [
37], key strategies in circular cities include the adaptive reuse of buildings, retrofitting, and redeveloping degraded areas, which align with CE principles of reuse, refurbishment, and repurposing. Circular cities aim to separate economic growth from raw material consumption by reducing resource inputs, maximizing utility, and minimizing waste [
53].
Core elements of circular cities include urban bio-economy practices, material recovery, and local production systems emphasizing value loops and industrial symbiosis [
32]. Numerous cities worldwide have adopted circular initiatives focused on sustainable procurement, urban refurbishment, and efficient public utilities management [
8,
37,
54,
55]. However, these cities face challenges, such as the complexity of tracking circular practices across sectors and adapting regulatory frameworks to align CE goals with existing infrastructure [
55,
56]. Furthermore, circular cities prioritize socio-cultural and environmental sustainability by creating networks that enhance social equity, urban resilience, and resource efficiency [
57,
58,
59,
60]. Modular and adaptable building and infrastructure designs promote extended use, shared utilization, and easy disassembly, contributing to resource conservation [
32,
47]. This model also fosters high-tech innovation, job creation, and community empowerment, ultimately enhancing quality of life [
61,
62].
Given that establishing a single universal definition for CE is nearly impossible due to its dynamic and evolving nature [
30] and recognizing that CE operates across three levels—micro, meso, and macro—with the aim of achieving sustainable development encompassing environmental quality, economic prosperity, and social equity [
21,
63], it is crucial to develop new approaches to identify CE indicators across various scales.
Cities, although smaller in scale compared to regions or nations, operate as complex systems that integrate multiple socio-economic and environmental factors, characteristics typically associated with macro-level systems. These factors include urban planning, policy implementation, economic activities, and large-scale resource management [
64,
65]. Cities play a critical role in driving systemic change in relation to sustainability and CE principles. As hubs for innovation, economic activity, and governance, they are uniquely positioned to implement large-scale policy frameworks that affect not only urban environments but also surrounding regions. Moreover, cities possess the infrastructure, resources, and governance frameworks necessary to adopt and enforce CE practices, contributing significantly to both economic and environmental outcomes [
66,
67]. For these reasons, cities are classified at the macro level due to their critical role in shaping sustainability outcomes and implementing systemic changes that align with regional, national, and global sustainability goals. Their ability to integrate CE practices and influence the three dimensions of sustainability—economic, environmental, and social—reinforces their placement at the macro level [
19,
61,
68].
In essence, circular cities incorporate CE principles into all urban functions, leveraging digital technologies, local partnerships, and sustainable practices to establish regenerative, future-proof urban systems [
3,
29]. This holistic approach not only supports sustainable urban development but also decouples economic growth from natural resource consumption, ensuring long-term resilience and prosperity for urban communities. Additionally, circular cities play a critical role in addressing socio-economic challenges, reducing carbon emissions, and fostering resilience to environmental pressures [
69].
In
Table 2, the state-of-the-art regarding the main principles and concepts related to CE, circularity at the macro level, and the focus on circular cities is explained. The macro level includes broader systems such as regions, nations, and global frameworks. While circular cities are a significant component of this level, they represent only a part of the larger system, which is crucial for defining the Circular City Indicators (CCIs) in the methodology and results sections.
CE indicators play a pivotal role in knowledge transfer and creating alignment among diverse stakeholders, especially when frameworks and a shared language are established. These efforts support ongoing, comprehensive evaluations of circularity status and progress, ultimately contributing to the effective realization of CE objectives in urban contexts. Indicators serve as essential tools in assessing and measuring progress toward achieving CE goals and determining the level of circularity in cities. Comprising both quantitative and qualitative variables, indicators provide precise insights into the current state and developments toward a circular system. They are utilized through indicator-based frameworks to offer a comprehensive and holistic view of urban circularity [
76,
77,
78]. Indicators are not merely facilitators in the assessment process; they play a fundamental role in realizing and optimizing CE practices [
16]. Quantitative and qualitative metrics, along with diverse frameworks, provide a structured approach to measuring the effectiveness and progress of CE initiatives. These tools create a common understanding among stakeholders, facilitating discussions and the implementation of CE across various levels [
39,
79].
In general, CE indicators are defined across three levels: the micro-level (products and consumers), the meso-level (industrial parks), and the macro-level (regions and cities). At the macro level, due to the inherent complexities and multidimensional aspects of urban areas, specific indicators are needed to effectively measure and monitor circularity on an urban scale. These indicators should address core principles of the CE, such as reducing natural resource consumption, increasing the share of renewable resources, minimizing waste production, and enhancing product durability [
14,
15,
52]. Given the diverse nature of cities, macro-level indicators may have different priorities in each urban context. However, for a comprehensive evaluation of circularity at this scale, it is essential to consider all CE principles. While some principles may take precedence over others depending on the urban context, none should be entirely overlooked, as focusing on these principles facilitates the creation of more sustainable cities with improved resource management.
Indicators, as variables that provide quantitative and qualitative information, are crucial in improving decision-making and evaluating performance in alignment with CE and circularity goals. Although some aspects of urban circularity may not be entirely quantifiable, both quantitative and qualitative indicators are essential for a well-rounded assessment. This combination, particularly within frameworks that establish shared understanding and tangible goals, is invaluable [
16,
39].
Efforts to standardize circularity measurement continue, particularly at national or European scales. The Ellen MacArthur Foundation introduced a Circularity Baseline with indicators based on resource productivity, circular activities, waste generation, and energy and greenhouse gas emissions, demonstrated through a case study in Denmark [
3]. The European Union recently published a framework for monitoring the CE with ten indicators, covering areas such as production and consumption, waste management, secondary raw materials, competitiveness, and innovation [
47]. The EU also developed the Eco-Innovation Index, which evaluates eco-innovation performance across member states through 16 indicators in five dimensions: eco-innovation inputs, activities, outputs, resource efficiency, and socio-economic outcomes [
32]. Similarly, the Chinese government has worked on CE indicators, primarily focused on resource efficiency [
19].
Also, in recent years, significant research efforts have been dedicated to identifying and categorizing CE indicators across various levels. For instance, Linder and Williander [
43] reviewed micro-level indicators focused on assessing product circularity by evaluating criteria that enhance circularity at the product level. Moving to broader levels, Pauliuk [
40] proposed indicators that span all three system levels, along with a dashboard of key metrics for evaluating CE strategies at organizational and product levels. Saidani et al. [
16] further categorized CE indicators into three levels and identified 19 macro-level indicators, although only three specifically addressed urban circularity. Similarly, Elia et al. [
15] identified 16 CE-related indicators across three system levels, assessing them against five essential CE requirements (reducing input and use of natural resources, reducing emission levels, reducing valuable material losses, increasing the share of renewable and recyclable resources and increasing the value durability of products). Corona et al. [
14], while not categorizing indicators explicitly by system level, examined indicators based on criteria such as resource consumption reduction and product durability. Parchomenko et al. [
39] used multiple correspondence analysis to evaluate 63 indicators, clustering them into three primary categories: resource efficiency, material flow, and product-focused indicators.
While recent studies have made progress in identifying and categorizing CE indicators, but they have primarily focused on the micro and meso levels, with limited attention given to macro-level or urban-scale indicators. Studies by Fusco Girard and Nocca [
80] and Gravagnuolo et al. [
81] have considered urban-level indicators, but their focus has often been on individual indicators rather than comprehensive frameworks to evaluate CE at the urban scale.
One notable gap in prior research is the limited use of advanced methods, such as ML, for systematically identifying and categorizing comprehensive CE indicators at the urban level in order to achieve circular cities. Consequently, a unified, systematic list of urban-focused CE indicators has yet to be established. To address these gaps, this study presents an innovative approach for identifying CE indicators specifically for urban contexts. By leveraging ML algorithms and text analysis, this approach aims to systematically extract and categorize CE indicators at the macro level, introducing a methodology that has not been previously applied in this field. In total, CE indicators—spanning multiple system levels—are instrumental in guiding cities toward circularity. They enhance decision-making, improve resource management, and help achieve sustainable development by offering a well-rounded assessment. This approach of integrating both quantitative and qualitative indicators within shared frameworks is vital for realizing tangible CE goals, fostering alignment among stakeholders, and enabling effective monitoring and evaluation of CE progress across urban environments. In the evolving field of circular cities, identifying robust and comprehensive indicators is essential for assessing urban circularity at the macro level. This research introduces an innovative, data-driven approach, laying the foundation for future studies and enabling cities to better evaluate their progress within the context of the CE at the macro scale. Despite significant progress in identifying and categorizing CE indicators at various levels, most studies have primarily focused on micro and meso levels. This research aims to fill the existing gaps in urban circularity studies by developing a data-driven methodology for evaluating urban-level CE indicators. These indicators are critical for enhancing resource management, improving decision-making, and achieving sustainable urban development. By leveraging advanced analytical techniques, this study contributes to the ongoing efforts to standardize circularity measurement at the urban scale.
This study employs a combination of systematic literature review and advanced machine learning techniques to extract comprehensive and reliable indicators for evaluating urban circularity. By utilizing advanced algorithms, this approach analyzes relevant scientific literature and reports to create an extensive list of CE indicators that align with circularity principles and macro-level urban needs [
21,
23,
82]. Due to the structure and performance of these methods and the minimal human intervention required, this list can serve as a foundation for developing strategies and evaluating CE indicators in future research.
The methodology and stages of this approach are comprehensively detailed in the following sections of this paper, presenting a novel framework for assessing circularity at the macro-urban level.
3. Results
The initial set of the proposed indicators across the evaluated algorithms is extensive. Through a content-based review, Indicators with scores below 0.40 are excluded due to insufficient accuracy, ensuring the reliability and relevance of the remaining data. This refinement allowed for a focused selection on higher-scoring indicators, yielding a more cohesive and relevant list
Table 5. Consequently,
Table 5 presents only those indicators with the strongest relevance and scores; weaker entries from the preliminary list are systematically excluded. The final list of the indicators is in
Table A3.
Figure 3 presents the results of an ANOVA analysis to compare different text representation methods and clustering techniques, illustrating the performance differences among them [
84,
86,
87]. This analysis compares the performance of different algorithms in evaluating key metrics, highlighting the strengths and weaknesses of each based on their highest and lowest scores. The ANOVA test shows a significant difference among methods with F = 33.330 and
p = 0.000, indicating statistically significant variance in performance across the methods (
p < 0.05).
The Cluster method has the highest mean value (1.82922), followed by TF-IDF and other representation methods. The Graph method shows the lowest performance, highlighting that different text representation techniques can significantly impact model performance. These differences underline that each algorithm has varying effectiveness depending on the type of phrase it evaluates, with Cluster performing the best in terms of high scores and Graph showing lower scores in some case, as mentioned in
Figure 3.
Highest score: The Cluster algorithm has the highest score of 4.083 for the phrase “water resource quality”, indicating its strong performance in evaluating this specific metric.
Lowest score: The Graph algorithm has the lowest score of 0.401 for the phrase “resource wastage amount”, suggesting it might be less effective in assessing this metric.
3.1. Distribution and Variability Analysis of Algorithm Performance
Figure 4 provides insights into the performance distribution and variability of different algorithms. The spread of individual scores highlights each algorithm’s tendencies, while the density visualization reveals consistency levels and outliers, enabling a clear comparison of stability and range across the methods.
The scatter plot shows the spread of scores for each algorithm. Cluster has the widest spread, with scores ranging up to a maximum of 4.083, and the largest bubbles, indicating higher scores and greater variability. In comparison, BERT, Graph, and Word2Vec have closely clustered scores around the lower range, with maximum values of 1.439, 1.201, and 1.28, respectively, showing limited variability. TF-IDF is more dispersed, with scores reaching 1.754, but still does not reach Cluster’s highest values. The violin plot highlights the distribution and density of scores. Cluster’s elongated shape, with scores spanning from 0.644 to 4.083, indicates high variance and the presence of outliers. In contrast, BERT, Word2Vec, Graph, and TF-IDF have narrower shapes, with maximum scores of 1.439, 1.28, 1.201, and 1.754, respectively, suggesting more consistent, lower-range performance with less variability.
Cluster has a broader range and more variability in its performance scores, achieving higher scores but with less consistency. In contrast, BERT, Word2Vec, and Graph display more stable performance with lower scores, while TF-IDF stands in between, showing moderate spread and scores. This suggests that, depending on the need for consistency versus high performance, Cluster might be suitable for scenarios where higher scores are desired, albeit with more variability.
Also, the comparison illustrates the clustering quality of different algorithms (BERT, Cluster, Graph, TF-IDF, and Word2Vec) by using Silhouette scores, which measure how distinctly each algorithm defines clusters. Higher scores indicate better separation between clusters, which can be summarized as follows:
BERT stands out with high Silhouette scores around 0.8, indicating excellent cluster definition.
Cluster displays mixed results, with scores ranging from 0.3 to 0.7, highlighting inconsistent clustering quality.
Graph and TF-IDF maintain stable, mid-level scores near 0.5, providing moderate clustering capabilities.
Word2Vec has the weakest performance, with scores between 0.2 and 0.4, reflecting poor clustering quality.
This analysis emphasizes BERT’s strength in creating distinct clusters, while Word2Vec’s lower Silhouette scores suggest limitations in clustering effectiveness. The figure related to the result of Silhouette scores is shown in
Appendix A Figure A1.
3.2. Evaluation of Clustering Quality and Algorithm Performance Using Silhouette Scores
This heatmap provides two important points. First, it shows an overview of the Silhouette scores for each indicator, highlighting how well clusters are defined for different metrics. It helps readers understand the clustering quality across indicators, showcasing the complexity and clarity of clusters. Secondly, it shows the algorithm associations for each indicator, making it easy to see which algorithms perform well for specific indicators. It also highlights algorithm dominance and is useful for understanding the strengths and coverage of each algorithm, as shown in
Figure 5.
Cluster consistently appears in the highest Silhouette score regions (bright yellow areas), indicating it is the top performer with high clustering quality across various indicators.
BERT shows frequent occurrences with stable, moderate Silhouette scores (pink and purple regions), indicating it provides reliable, general-purpose clustering quality.
Graph, TF-IDF, and Word2Vec appear primarily in the lower Silhouette score regions (dark blue and purple areas), suggesting that they have limited effectiveness in clustering and struggle to achieve well-defined clusters.
Figure 5 provides a comprehensive view of both clustering quality and algorithm applicability and coverage, making the analysis both detailed and insightful.
The analysis of various visualizations reveals distinct performance patterns across clustering algorithms. Cluster consistently achieves the highest clustering quality, while BERT provides reliable, moderate clustering performance. Graph, TF-IDF, and Word2Vec are generally less effective, showing lower clustering precision across indicators.
5. Conclusions
In summary, this study demonstrates the effectiveness of combining text analyzing/text semantic techniques, which use some machine learning techniques and an SLR to identify and assess indicators for urban circularity at the macro level. By employing advanced algorithms, such as BERT, TF-IDF, Word2Vec, and graph-based clustering models, the research successfully extracts a comprehensive set of high-frequency indicators that align with key CE principles and aims. The overlap between these algorithms reveals common themes, such as waste management, renewable energy, resource efficiency, and circular material use, all of which play a central role in advancing urban sustainability and circularity; based on
Table 2, there are less attention to education and public awareness and smart infrastructure and digital innovation and collaboration and policy support.
The results also highlight the strengths and limitations of each algorithm. Cluster-based models show a broader variability in performance scores, making them suitable for scenarios where higher scores are desired, despite their less consistent results. On the other hand, BERT provides stable and accurate clustering, making it a strong candidate for generating distinct clusters, while Word2Vec’s weaker performance suggests limitations in clustering effectiveness. These differences emphasize the importance of choosing the right methodology depending on the desired outcome—whether consistency or the potential for high scores.
Moreover, the analysis of indicator overlap among the algorithms reveals both common ground and gaps. Indicators that span multiple CE principles are consistently identified across algorithms (reduction, rethink, and recovery), offering strong thematic consistency. However, there are areas where the algorithms diverge (repurpose, refusal, and remanufacturing), highlighting research gaps that warrant further exploration; this gap is based on focuses in previous research.
This study underscores the value of innovation methodology to refine indicator identification based on the level of analysis (micro, meso, or macro) and the specific goals of research in different contexts with different concepts. Future studies could benefit from using one or a mix of these algorithms, depending on the focus of the analysis, whether assessing urban circularity at the city level or for broader regional sustainability efforts. The proposed methodology offers a scalable framework for cities to evaluate their circularity progress using a combination of shared indicators across different algorithms. Also, future research could expand on these findings by incorporating a validation phase, where the identified indicators are tested in real-world scenarios or through expert feedback. This would enhance the reliability of the results and provide more robust insights into the effectiveness of the indicators in different urban contexts. Furthermore, investigating less-represented principles, such as “Repair” and “Repurpose”, could provide a more balanced approach to circularity. These directions will help refine the methodology and contribute to broader advancements in urban sustainability research, and the extracted indicators can be categorized based on the DPSIR model (Drivers, Pressure, Impacts, State, and Response). This approach could help better understand the role of each indicator in CE and urban sustainability.
Furthermore, a longitudinal approach could be adopted in future studies to track the effectiveness of the identified indicators over time, helping to evaluate their sustainability and long-term impact on urban circularity.
The results of this study are not only relevant for academic research but also have significant implications for urban planning and policymaking. The identified indicators can guide policy development by aligning with CE principles, such as waste reduction, resource efficiency, and sustainable urbanization. They can support decision-making by helping policymakers prioritize areas, such as “Reduction” and “Rethink”, thus promoting interventions that maximize circularity and sustainability at the urban scale. These indicators can also be integrated into urban planning frameworks, supporting long-term goals such as climate resilience, economic growth, and social equity.