A REVIEW OF THE EVOLVING ROLE OF ECONOMIC AND ACCOUNTING PRACTICES IN SUSTAINABLE CONSTRUCTION INDUSTRY

Authors

Abstract

The construction industry occupies a paradoxical position in the global sustainability discourse, functioning simultaneously as a cornerstone of economic development, contributing approximately 6 percent to global GDP and employing roughly 100 million people, while constituting the largest consumer of raw materials and a primary generator of solid waste, accounting for approximately 40 percent of total waste by weight. Through systematic analysis of peer-reviewed publications spanning 2015 to 2025, four thematic areas of inquiry are identified: sustainability reporting frameworks and their sectoral application, financial performance implications of green management practices, specialized accounting methodologies including carbon accounting, environmental management accounting, and life cycle costing, and the economic dimensions of circular economy transitions. The review reveals that notwithstanding significant momentum in sustainability reporting, the literature remains fragmented, characterized by limited theoretical engagement and a conspicuous neglect of institutional perspectives. Green management practices demonstrate consistently positive associations with financial performance through mechanisms including operational cost reduction, revenue enhancement, and improved stakeholder relations. Specialized accounting tools have emerged as critical instruments for operationalizing sustainability, yet persistent methodological gaps remain in carbon accounting granularity and lifecycle assessment integration. The circular economy presents substantial economic opportunities alongside formidable accounting challenges, particularly concerning asset valuation, revenue recognition, and intertemporal accountability. The review concludes that integrating sustainability imperatives with economic and accounting practices constitutes both a critical challenge and opportunity for the construction industry. Addressing this exigency demands not only methodological innovation but also fundamental reconceptualization of accounting as a constitutive element of socio-ecological stewardship.

Keywords

Sustainability accounting; construction industry; economic sustainability; carbon accounting; life cycle costing; ESG reporting; financial performance; & circular economy

DOI

10.0000/wijamssae.v1i2.a-review-of-the-evolving-role-of-economic-and-acco

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