Measuring Circular Economy Index in Agriculture at the Farm Level by using the Fuzzy Analytical Hierarchy Process

Authors

  • Nguyen Thi Vinh Ha University of Economics and Business, Vietnam National University, Hanoi, Vietnam Author
  • Nguyen The Kien University of Economics and Business, Vietnam National University, Hanoi, Vietnam Corresponding Author

DOI:

https://doi.org/10.47654/v29y2025i1p112-144

Keywords:

Circular economy index, agriculture, farm level, fuzzy analytic hierarchy process (FAHP), sustainability assessment

Abstract

Purpose: The Circular economy has emerged as a vital framework for achieving sustainable agriculture in the face of global climate change, environmental degradation, and rising food demand. However, most existing indicators measure circularity from isolated aspects, resulting in biased or incomplete assessments. To get a solution to the issue, this study develops a comprehensive Circular Economy Index (CEI) for agriculture at the farm level by using the Fuzzy Analytical Hierarchy Process (FAHP), and by providing a multidimensional and consistent approach to evaluate circular performance.

Design/methodology/approach: The study integrates expert judgments and farm-level data to assess circularity across the technical and impact dimensions—covering environmental, economic, and social aspects. The FAHP method enables systematic weighting of multiple indicators under uncertainty, offering a robust framework for both empirical analysis and policy evaluation.

Findings: The results demonstrate that impact-related criteria account for 61% of the total CEI weight, underscoring the dominance of environmental and social factors in assessing circularity. Among six agricultural models examined, the integrated VAC (Vuon-Ao-Chuong) system achieved the highest CEI score (42.2), highlighting its superior performance in nutrient recycling, biodiversity conservation, and overall sustainability.

Originality/value: This study is the first to design and implement a comprehensive, multi-dimensional CEI tailored to farm-level agriculture in Vietnam, overcoming the limitations of conventional single-aspect measures. It contributes to the literature of decision sciences by demonstrating how FAHP can operationalize complex and multi-criteria evaluations in uncertain contexts. For academics, the study offers a replicable model for quantitative CE assessment; and for policymakers and practitioners, it provides an evidence-based tool to identify, benchmark, and scale up circular agricultural systems that promote both economic efficiency and environmental stewardship.

References

Angelis-Dimakis, A., Alexandratou, A., & Balzarini, A. (2016). Value chain upgrading in a textile dyeing industry. Journal of Cleaner Production, 138, 237-247.

Banerjee, A., Chakrabarty, M., Rakshit, N., Mukherjee, J., & Ray, S. (2017). Indicators and assessment of ecosystem health of Bakreswar reservoir, India: an approach through network analysis. Ecological Indicators, 80, 163-173.

Biganzoli, L., Rigamonti, L., & Grosso, M. (2018). Intermediate bulk containers re-use in the circular economy: an LCA evaluation. Procedia CIRP, 69, 827-832.

Buckley, J. J. (1985). Fuzzy hierarchical analysis. Fuzzy sets and Systems, 17(3), 233-247.

Cobo, S., Dominguez-Ramos, A., & Irabien, A. (2018). Trade-offs between nutrient circularity and environmental impacts in the management of organic waste. Environmental science & technology, 52(19), 10923-10933.

de Kraker, J., Kujawa-Roeleveld, K., Villena, M., J. Cramer, M., & Pabón-Pereira, C. (2019). Decentralized valorization of residual flows as an alternative to the traditional urban waste management system: The case of peñalolén in santiago de chile. Sustainability, 11(22), 6206.

Di Maio, F., Rem, P. C., Baldé, K., & Polder, M. (2017). Measuring resource efficiency and circular economy: A market value approach. Resources, Conservation and Recycling, 122, 163-171.

Eisenreich, A., Füller, J., Stuchtey, M., & Gimenez-Jimenez, D. (2022). Toward a circular value chain: Impact of the circular economy on a company's value chain processes. Journal of Cleaner Production, 134375.

Ellen MacArthur Foundation. (2023). What is a circular economy? Retrieved 18 June from https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview#principles

European Commission. (2019). Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the implementation of the Circular Economy Action Plan (Press release, Issue.

Fernandez-Mena, H., Gaudou, B., Pellerin, S., MacDonald, G., & Nesme, T. (2020). Flows in Agro-food Networks (FAN): An agent-based model to simulate local agricultural material flows. Agricultural Systems, 180, 102718.

Fernandez-Mena, H., Nesme, T., & Pellerin, S. (2016). Towards an Agro-Industrial Ecology: A review of nutrient flow modelling and assessment tools in agro-food systems at the local scale. Science of The Total Environment, 543, 467-479.

Franklin-Johnson, E., Figge, F., & Canning, L. (2016). Resource duration as a managerial indicator for Circular Economy performance. Journal of Cleaner Production, 133, 589-598.

Fregonara, E., Giordano, R., Ferrando, D. G., & Pattono, S. (2017). Economic-environmental indicators to support investment decisions: A focus on the buildings’ end-of-life stage. Buildings, 7(3), 65.

Gbededo, M. A., Liyanage, K., & Garza-Reyes, J. A. (2018). Towards a Life Cycle Sustainability Analysis: A systematic review of approaches to sustainable manufacturing. Journal of Cleaner Production, 184, 1002-1015.

Gogus, O., & Boucher, T. O. (1997). A consistency test for rational weights in multi-criterion decision analysis with fuzzy pairwise comparisons. Fuzzy sets and Systems, 86(2), 129-138.

Golinska, P., Kosacka, M., Mierzwiak, R., & Werner-Lewandowska, K. (2015). Grey decision making as a tool for the classification of the sustainability level of remanufacturing companies. Journal of Cleaner Production, 105, 28-40.

Grimaud, G., Perry, N., & Laratte, B. (2017). Decision support methodology for designing sustainable recycling process based on ETV standards. Procedia Manufacturing, 7, 72-78.

Guo, S.-L. (2015). Agricultural Foods Economic Efficiency Evaluation Based on DEA. Advance Journal of Food Science and Technology, 8(7), 472-475.

Hadzic, A., Voca, N., & Golubic, S. (2018). Life-cycle assessment of solid-waste management in city of Zagreb, Croatia. Journal of Material Cycles and Waste Management, 20(2), 1286-1298.

Hertwich, E., Lifset, R., Pauliuk, S., & Heeren, N. (2020). Resource Efficiency and Climate Change: Material Efficiency Strategies for a Low-Carbon Future-Summary for Policymakers (9280737716). (IRP Reports, Issue.

Huysman, S., De Schaepmeester, J., Ragaert, K., Dewulf, J., & De Meester, S. (2017). Performance indicators for a circular economy: A case study on post-industrial plastic waste. Resources, Conservation and Recycling, 120, 46-54.

Iacovidou, E., Velis, C. A., Purnell, P., Zwirner, O., Brown, A., Hahladakis, J., Millward-Hopkins, J., & Williams, P. T. (2017). Metrics for optimising the multi-dimensional value of resources recovered from waste in a circular economy: A critical review. Journal of Cleaner Production, 166, 910-938.

Iakovou, E., Moussiopoulos, N., Xanthopoulos, A., Achillas, C., Michailidis, N., Chatzipanagioti, M., Koroneos, C., Bouzakis, K.-D., & Kikis, V. (2009). A methodological framework for end-of-life management of electronic products. Resources, Conservation and Recycling, 53(6), 329-339.

Jun, H., & Xiang, H. (2011). Development of circular economy is a fundamental way to achieve agriculture sustainable development in China. Energy Procedia, 5, 1530-1534.

Kirchherr, J., Yang, N.-H. N., Schulze-Spüntrup, F., Heerink, M. J., & Hartley, K. (2023). Conceptualizing the Circular Economy (Revisited): An Analysis of 221 Definitions. Resources, Conservation and Recycling, 194, 107001.

Kristensen, H. S., & Mosgaard, M. A. (2020). A review of micro level indicators for a circular economy–moving away from the three dimensions of sustainability? Journal of Cleaner Production, 243, 118531.

Kumar, M., Sharma, M., Raut, R. D., Mangla, S. K., & Choubey, V. K. (2022). Performance assessment of circular driven sustainable agri-food supply chain towards achieving sustainable consumption and production. Journal of Cleaner Production, 372, 133698.

Laso, J., Margallo, M., Celaya, J., Fullana, P., Bala, A., Gazulla, C., Irabien, A., & Aldaco, R. (2016). Waste management under a life cycle approach as a tool for a circular economy in the canned anchovy industry. Waste Management & Research, 34(8), 724-733.

Lim, C. H., Wen Zhe Chuen, W., Foo, J. Q., Tan, T. J., How, B. S., Ng, W. P. Q., & Lam, H. L. (2019). Circular Sustainability Optimisation Model for Diverse Oil Crops Feedstock System via Element Targeting Approach. CET Journal-Chemical Engineering Transactions, 76.

Liu, S., Min, Q., Jiao, W., Liu, C., & Yin, J. (2018). Integrated emergy and economic evaluation of Huzhou mulberry-dyke and fish-pond systems. Sustainability, 10(11), 3860.

Liu, Y., Eckert, C. M., & Earl, C. (2020). A review of fuzzy AHP methods for decision-making with subjective judgements. Expert Systems with Applications, 161, 113738.

Martin, M., Wetterlund, E., Hackl, R., Holmgren, K. M., & Peck, P. (2017). Assessing the aggregated environmental benefits from by-product and utility synergies in the Swedish biofuel industry. Biofuels.

Matrapazi, V., & Zabaniotou, A. (2020). Experimental and feasibility study of spent coffee grounds upscaling via pyrolysis towards proposing an eco-social innovation circular economy solution. Science of The Total Environment, 718, 137316.

McBride, A. C., Dale, V. H., Baskaran, L. M., Downing, M. E., Eaton, L. M., Efroymson, R. A., Garten Jr, C. T., Kline, K. L., Jager, H. I., & Mulholland, P. J. (2011). Indicators to support environmental sustainability of bioenergy systems. Ecological Indicators, 11(5), 1277-1289.

Molina-Moreno, V., Leyva-Díaz, J. C., Llorens-Montes, F. J., & Cortés-García, F. J. (2017). Design of indicators of circular economy as instruments for the evaluation of sustainability and efficiency in wastewater from pig farming industry. Water, 9(9), 653.

Moreno, V. C., Iervolino, G., Tugnoli, A., & Cozzani, V. (2020). Techno-economic and environmental sustainability of biomass waste conversion based on thermocatalytic reforming. Waste Management, 101, 106-115.

Ng, K. S., & Hernandez, E. M. (2016). A systematic framework for energetic, environmental and economic (3E) assessment and design of polygeneration systems. Chemical Engineering Research and Design, 106, 1-25.

Ngo, T., Nguyen, H. D., Ho, H., Nguyen, V. K., Dao, T. T., & Nguyen, H. T. (2021). Assessing the important factors of sustainable agriculture development: An Indicateurs de Durabilité des Exploitations Agricoles‐Analytic Hierarchy Process study in the northern region of Vietnam. Sustainable Development, 29(2), 327-338.

Olugu, E. U., & Wong, K. Y. (2012). An expert fuzzy rule-based system for closed-loop supply chain performance assessment in the automotive industry. Expert Systems with Applications, 39(1), 375-384.

Pagotto, M., & Halog, A. (2016). Towards a circular economy in Australian agri‐food industry: an application of input‐output oriented approaches for analyzing resource efficiency and competitiveness potential. Journal of Industrial Ecology, 20(5), 1176-1186.

Papangelou, A., Achten, W. M., & Mathijs, E. (2020). Phosphorus and energy flows through the food system of Brussels Capital Region. Resources, Conservation and Recycling, 156, 104687.

Paramesh, V., Ravisankar, N., Behera, U., Arunachalam, V., Kumar, P., Solomon Rajkumar, R., Dhar Misra, S., Mohan Kumar, R., Prusty, A., & Jacob, D. (2022). Integrated farming system approaches to achieve food and nutritional security for enhancing profitability, employment, and climate resilience in India. Food and energy security, 11(2), e321.

Park, J. Y., & Chertow, M. R. (2014). Establishing and testing the “reuse potential” indicator for managing wastes as resources. Journal of Environmental Management, 137, 45-53.

Pauliuk, S. (2018). Critical appraisal of the circular economy standard BS 8001: 2017 and a dashboard of quantitative system indicators for its implementation in organizations. Resources, Conservation and Recycling, 129, 81-92.

Peng, J., Liu, Z., Liu, Y., Hu, X., & Wang, A. (2015). Multifunctionality assessment of urban agriculture in Beijing City, China. Science of The Total Environment, 537, 343-351.

Petit, G., Sablayrolles, C., & Yannou-Le Bris, G. (2018). Combining eco-social and environmental indicators to assess the sustainability performance of a food value chain: A case study. Journal of Cleaner Production, 191, 135-143.

Potting, J., Hekkert, M. P., Worrell, E., & Hanemaaijer, A. (2017). Circular economy: measuring innovation in the product chain. Planbureau voor de Leefomgeving(2544).

Repo, A., Tuomi, M., & Liski, J. (2011). Indirect carbon dioxide emissions from producing bioenergy from forest harvest residues. Gcb Bioenergy, 3(2), 107-115.

Rood, T., & Hanemaaijer, A. (2017). Opportunities for a circular economy. PBL Netherlands Environmental Assessment Agency: The Hague, The Netherlands.

Rufino, M., Hengsdijk, H., & Verhagen, A. (2009). Analysing integration and diversity in agro-ecosystems by using indicators of network analysis. Nutrient Cycling in Agroecosystems, 84, 229-247.

Saaty, T. L. (2008). Decision making with the analytic hierarchy process. International journal of services sciences, 1(1), 83-98.

Sachs, J. D. (2015). The age of sustainable development. Columbia University Press.

Santagata, R., Zucaro, A., Viglia, S., Ripa, M., Tian, X., & Ulgiati, S. (2020). Assessing the sustainability of urban eco-systems through Emergy-based circular economy indicators. Ecological Indicators, 109, 105859.

Sassanelli, C., Rosa, P., Rocca, R., & Terzi, S. (2019). Circular economy performance assessment methods: A systematic literature review. Journal of Cleaner Production, 229, 440-453.

Shen, L., Olfat, L., Govindan, K., Khodaverdi, R., & Diabat, A. (2013). A fuzzy multi criteria approach for evaluating green supplier's performance in green supply chain with linguistic preferences. Resources, Conservation and Recycling, 74, 170-179.

Stahel, W. R., & Reday-Mulvey, G. (1976). The potential for substituting manpower for energy; report to DG V for Social Affairs. (Research contract no. 760137 programme of research and Actions on the development of the Labour Market (76/13), Issue.

Tadesse, S. T., Oenema, O., van Beek, C., & Ocho, F. L. (2019). Nitrogen allocation and recycling in peri-urban mixed crop–livestock farms in Ethiopia. Nutrient Cycling in Agroecosystems, 115(2), 281-294.

Thanh, P. V. (2010). VAC integrated system with entire energy chain in Vietnam. How to make ‘Integrated Food Energy Systems’ work for small-scale farmers and rural people, Rome.

Toop, T. A., Ward, S., Oldfield, T., Hull, M., Kirby, M. E., & Theodorou, M. K. (2017). AgroCycle-developing a circular economy in agriculture. Energy Procedia

123, 76-80.

Valkama, E., Lemola, R., Känkänen, H., & Turtola, E. (2016). Catch crops as universal and effective method for reducing nitrogen leaching loss in spring cereal production: A meta-analysis. EGU General Assembly Conference Abstracts,

Vasa, L., Angeloska, A., & Trendov, N. M. (2017). Comparative analysis of circular agriculture development in selected Western Balkan countries based on sustainable performance indicators. Economic annals-XXI(168), 44-47.

Velasco-Muñoz, J. F., Mendoza, J. M. F., Aznar-Sánchez, J. A., & Gallego-Schmid, A. (2021). Circular economy implementation in the agricultural sector: Definition, strategies and indicators. Resources, Conservation and Recycling, 170, 105618.

Wang, B., Song, J., Ren, J., Li, K., & Duan, H. (2019). Selecting sustainable energy conversion technologies for agricultural residues: A fuzzy AHP-VIKOR based prioritization from life cycle perspective. Resources, Conservation and Recycling, 142, 78-87.

Wang, H.-J., Huang, B., Shi, X.-Z., Darilek, J. L., Yu, D.-S., Sun, W.-X., Zhao, Y.-C., Chang, Q., & Öborn, I. (2008). Major nutrient balances in small-scale vegetable farming systems in peri-urban areas in China. Nutrient Cycling in Agroecosystems, 81, 203-218.

Wibowo, S., & Grandhi, S. (2017). Performance evaluation of recoverable end-of-life products in the reverse supply chain. 2017 IEEE/ACIS 16th International Conference on Computer and Information Science (ICIS),

Xia, X., & Ruan, J. (2020). Analyzing barriers for developing a sustainable circular economy in agriculture in China Using Grey-DEMATEL approach. Sustainability, 12(16), 6358.

Xu, Y., Zhang, L., Yeh, C.-H., & Liu, Y. (2018). Evaluating WEEE recycling innovation strategies with interacting sustainability-related criteria. Journal of Cleaner Production, 190, 618-629.

Zabaniotou, A. (2018). Redesigning a bioenergy sector in EU in the transition to circular waste-based Bioeconomy-A multidisciplinary review. Journal of Cleaner Production, 177, 197-206.

Zero Waste International Alliance. (2022). Zero Waste Hierarchy of Highest and Best Use 8.0. https://zwia.org/zwh/

Zhijun, F., & Nailing, Y. (2007). Putting a circular economy into practice in China. Sustainability Science, 2(1), 95-101.

Zoboli, O., Zessner, M., & Rechberger, H. (2016). Supporting phosphorus management in Austria: Potential, priorities and limitations. Science of The Total Environment, 565, 313-323.

Published

2025-11-01

How to Cite

Nguyen, T. V. H., & Nguyen, T. K. (2025). Measuring Circular Economy Index in Agriculture at the Farm Level by using the Fuzzy Analytical Hierarchy Process. Advances in Decision Sciences, 29(1), 112-144. https://doi.org/10.47654/v29y2025i1p112-144