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Abstract
The transition to a Circular Economy (CE) is pivotal for sustainable development yet remains under-tested in emerging markets where cultural and informal sectors dominate. This study empirically examines the impact of the 5R framework (Reduce, Reuse, Recycle, Refurbish, Renew) on the perception of a green economy in West Sumatra, Indonesia, serving as a microcosm of the Global South. Using a mixed-methods approach that combines quantitative regression (N = 700) and qualitative Causal Loop Diagram (CLD) analysis, we identify a significant paradox. While Reduce (đ˝ = 0.142), Reuse (đ˝ = 0.102), and Renew (đ˝ = 0.068) have a positive impact on green economy perception, Recycle (đ˝ = -0.013) and Refurbish (đ˝ = -0.004) demonstrate statistically significant negative impacts. We attribute this to a perception-practice gap where informal downcycling and second-hand goods are viewed as signaling backwardness rather than sustainability. By integrating an Islamic Economic perspective as a cultural lens, we highlight how religious values align with resource efficiency (Khalifah) but clash with the perceived âimpurityâ (Najis) of current informal waste practices. These findings challenge one-size-fits-all CE policies and suggest that achieving a Green Economy requires formalizing the informal sector and leveraging religious social capital to reshape public perception.
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Article Type: Research Article
EUR J SUSTAIN DEV RES, Volume 10, Issue 3, 2026, Article No: em0417
https://doi.org/10.29333/ejosdr/18940
Publication date: 07 Jul 2026
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