Negotiating the circular economy in a shrinking post-mining region: Material legacies and social circularity in Parkstad Limburg

Abstract

This article critically examines the role of the circular economy in urban and regional governance, focusing on its social and political dimensions, often overlooked in favour of technical and economic considerations. Drawing on concepts of material and path dependence, it highlights the historical embeddedness of materials in spatial and community contexts, arguing that effective circular economy governance must extend beyond technocratic models to address the relationships between communities and their material environments. Using Parkstad Limburg, a shrinking post-mining region in the Netherlands, as a case study, we explore the emergence of ‘social circularity’ within the built environment sector. Our findings reveal how circular economy discourses rework existing governance narratives around shrinkage and spatial restructuring, rendering contentious interventions more legitimate. In doing so, we demonstrate that considering the social aspects of material circulation enables shrinking communities to navigate structural challenges and historical dependences, leveraging circular economy frameworks to reimagine their development pathways. This research demonstrates the potential for the circular economy to address the problems associated with structural shrinkage, provided the social, material, cultural, and political dimensions of place are embedded in circular strategies.

Introduction

The circular economy has increasingly been promoted as a governance framework for reconciling economic competitiveness with resource efficiency and strategic autonomy in cities and regions (Heurkens and Dąbrowski, 2020; Prendeville et al., 2018). Within this framework, materials have come to occupy a centre stage in policy discussions on the circular economy in Europe. This prominence is reflected in the frequent designation of certain raw materials (particularly metals) as ‘critical,’ a term underscored by numerous EU initiatives and communications (Hool et al., 2024). At the same time, much of the academic discourse on the circular economy remains narrowly focused on the technical intricacies of material flow closure or related business models while largely overlooking critical social, political, and environmental dimensions (Marin and De Meulder, 2018; Marjanović and Williams, 2024; Marjanović et al., 2022; Moreau et al., 2017). This fixation risks diverting attention and resources from the adoption of more holistic and integrated approaches to the governance of circular transitions while simultaneously depoliticising the transition process and reducing it to a mere technocratic exercise devoid of broader societal considerations (Calisto Friant et al., 2020, 2023; Pansera et al., 2021; Prendeville et al., 2018).

In response to such limitations, a growing body of scholarship has begun to foreground the social and political dimensions of the circular economy more explicitly. Work on social circularity and the everyday circular economy highlights how circular practices are embedded in social relations, habits, and material cultures rather than being purely technical interventions (Hobson, 2020). Complementary strands examine the justice implications of circular transitions, calling for more equitable and care-oriented circular economies (Genovese and Pansera, 2021; Pansera et al., 2021), while others conceptualise circularity through community well-being or degrowth-oriented ‘circular society’ approaches (Calisto Friant et al., 2023). In urban contexts, emerging research explores how circular economy policies intersect with governance, citizen participation, and planning, emphasising the socio-material configurations through which circular transitions unfold (Fratini et al., 2019; Prendeville et al., 2018).

This article contributes to such critiques of purely material conceptualisations of the circular economy by highlighting the historical embeddedness of materials in physical structures within specific spatial contexts, which fosters enduring relationships between communities inhabiting these spaces and their physical environment (Halbwachs, 2020[1950]). Rather than examining these relations directly through community members’ lived experience, our empirical analysis traces how they become articulated, interpreted, and mobilised within governance processes that shape circular economy transitions. Specifically, the article focuses on circular transitions in areas of structural decline, where urban built environments serve as rich repositories of raw materials (particularly for the construction sector), and examines how the circular economy is negotiated within the development discourses of a shrinking post-mining region. In such contexts, marked by population decline, vacancy, and underused infrastructure, the circular economy holds promise as a resource-efficient strategy for managing structural shrinkage and facilitating temporary or transformative forms of urban reuse (Williams, 2019).

Our conceptual framework builds on the concepts of material dependence and path dependence to unpack how historically anchored socio-material configurations condition urban and regional governance in contexts of decline. Beginning with their Latin root dependere (meaning ‘to hang on’) and drawing from the seminal work of French sociologist Maurice Halbwachs (2020[1950]) as well as recent contributions by governance scholars (Van Assche et al., 2011, 2014, 2022), we explore how these concepts illuminate the ways in which shrinking cities and regions remain tethered to their material environments and historical trajectories while striving to chart a path forward. We apply this framework to the case of Parkstad Limburg, a shrinking post-mining region in the Netherlands, aiming to understand the impact of the circular economy on path-creation processes in governance. To that end, we examined the transition to a circular economy within the built environment sector and the emergence of the ‘social circularity’ discourse, which addresses the crucial social dimension of this process.

We decided to focus on an urban setting undergoing structural shrinkage, guided by recent scholarship suggesting that shrinking cities, unlike large, growing cities that dominate political and academic attention, offer unique insights into the social dynamics and political complexities of implementing circular economy initiatives while enabling a critical departure from prevailing technocratic approaches (Marjanović and Williams, 2024). Moreover, local political traditions and social relationships that shape and sustain a city’s physical configuration tend to be most stable in smaller urban areas outside mainstream metropolises (Halbwachs, 2020[1950]). This makes them particularly instructive for examining how circularity is negotiated within existing socio-material and governance structures.

Building on these insights, this article pursues four interrelated aims. First, it examines the potential of the circular economy to serve as a governance tool for addressing the challenges faced by cities and regions undergoing structural shrinkage. Second, it explores the broader societal dimensions of circular economy initiatives in urban and regional governance, moving beyond narrowly technical or economic interpretations. Third, it demonstrates that effective circular economy governance must engage with the historically constituted relationships between communities and their material environments, particularly in contexts marked by industrial legacies and demolition. Finally, the article reflects on how material and path dependence shape circular transitions, highlighting the importance of identifying and leveraging synergies between the intertwined social, material, cultural, and political dimensions of circular transitions.

Space, materials, collective memory: Unpacking material and path dependence in governance

We develop our conceptual framework by examining the concepts of material and path dependence in urban and regional governance. The notion of dependence has its etymological roots in the Latin dependere, which combines de- (meaning ‘from, down’) with pendere (meaning ‘to hang’), suggesting both constraint and restricted movement. This etymology offers a useful metaphor for understanding how existing governance configurations are, in effect, ‘suspended from’ or determined by past choices and events, including their material legacies. It draws attention to the vertical nature of dependence, explaining how institutional arrangements and decision-making processes in contemporary governance do not emerge on a blank slate but remain tethered to historical antecedents and built environments that are difficult to transform. Such a perspective matters because it emphasises that built structures are not passive remnants of the past, but material anchors that bind contemporary practices and political choices to inherited urban forms and commemorative regimes (Hayden, 1995; Huyssen, 2003).

At the same time, the metaphor of ‘hanging from’ captures the constrained yet dynamic nature of dependence, much like an object that can move within the radius permitted by its point of attachment, yet never fully escapes it. These insights help explain the structural implications of historical material legacies on the governance of shrinking cities and regions. They delimit what is possible while still allowing actors within these localities to innovate and adapt within the boundaries set by their inherited material environments.

Material dependence

But even if stones are movable, relationships established between stones and men are not so easily altered (Halbwachs, 2020[1950]: 200).

The quote above reflects the enduring connection between physical objects and human relationships, emphasising that while physical materials can be relocated, the social and emotional bonds tied to them, rooted in collective memory and spatial context, remain resilient and difficult to alter. This idea is one of the key takeaways from the seminal work of the French sociologist Maurice Halbwachs on collective memory. In the ‘Space and the Collective Memory’ chapter, Halbwachs (2020[1950]) examines the interconnections between spatial frameworks and the social groups inhabiting them, highlighting the mutual influence between communities and their physical surroundings: communities not only reshape the space they occupy but also adapt to the physical environment, becoming deeply embedded within the material structures they create. The community’s perception of its external surroundings and its stable and enduring connection to this environment play a central role in how it understands itself, ‘permeating every element of its consciousness, moderating and governing its evolution’ (Halbwachs, 2020[1950]: 199). This is particularly evident when a community has lived in a place for a long time; its way of thinking, habits, and interactions become shaped by the series of impressions created by the surrounding external objects (Halbwachs, 2020[1950]).

The role of this enduring connection between the material and the social in shaping the evolution of communities (and the ways they are governed), as described by Halbwachs, has recently been recognised by governance scholars through the concept of material dependence, particularly within the framework of Evolutionary Governance Theory (EGT; Van Assche et al., 2014). In EGT, material dependence refers to the effects of the external material environment on governance and how they play out in its evolution (Van Assche et al., 2022). It represents rigidity in the evolution of governance configurations, shaped by certain features and limitations of the physical environment in which the governance process takes place. Urban and geographical scholarship has similarly conceptualised cities as complex socio-material assemblages in which buildings, infrastructures, and material landscapes actively shape social relations and political possibilities, and become intertwined with formal policies and planning instruments (Graham & Marvin, 2002; Massey, 2013).

Material dependences can also take effect through material events, that is, when alterations in the physical environment bring about changes in governance configurations (Van Assche et al., 2022). They can include both natural occurrences (mostly) free of human influence and human interventions that alter the built and natural environments. While such events can pass unnoticed, for an occurrence to constitute a material event, it must be perceived and interpreted as such—it must bear special importance to the functioning of governance (Badiou, 2007; Duineveld et al., 2017). This is typically accomplished through discourse, which means that the dialectics between the discursive and the material not only provide the context for governance practices but also constitute the very objects and means of those practices (Lefebvre, 1991).

Material dependence, therefore, manifests itself not just in the enduring nature of exogenous material conditions but also in their lingering presence within the institutional features and discursive dynamics of governance. Building on this, planning and urban studies have shown that built environments operate as symbolic markers through which development paths are narrated, contested, and stabilised (Dembski, 2013; Dembski and Salet, 2010). In particular, research on post-industrial urban transformation highlights how former factories, mining landscapes, and industrial infrastructure often serve as symbolically charged reference points in struggles over urban and regional futures (Berger, 2019; Mah, 2012). For example, contributions to the volume edited by Berger (2019) show that industrial heritage may become an object of contestation when local actors mobilise it against efforts to erase, sanitise, or strategically repackage the industrial past, thereby advancing alternative narratives of regional identity and development.

In the context of this study, the concept of material dependence is highly relevant to both shrinking cities and circular economy transitions. On the one hand, urban shrinkage precipitates notable changes in the material environment of shrinking cities, necessitating public intervention. For instance, vacant residential and industrial properties, deteriorating buildings, and surplus physical infrastructure are typically addressed as part of efforts to manage shrinkage. On the other hand, the circular economy directly concerns the management and integration of diverse material flows. The structure and organisation of this process depend on local conditions, including the spatial context of material resources and infrastructures (Fratini et al., 2019; Obersteg et al., 2019).

Path dependence

Halbwachs (2020[1950]) observes that a city’s built environment evolves more slowly than the communities inhabiting it, making this slower pace of change a crucial foundation for developing and sustaining a community’s collective memory. He notes that ‘we can understand how we recapture the past only by understanding how it is, in effect, preserved by our physical surroundings’ (Halbwachs, 2020[1950]: 204). The relationships between communities and material structures, therefore, have not only a spatial dimension but also an important temporal one, serving as both spatial landmarks of community life and historical repositories of local traditions and collective memory. This is why social groups often resist the extraordinary material events of demolishing their built environment, as such acts provoke in the community ‘a more intense awareness of its past and present, with the bonds attaching it to the physical locale gaining greater clarity at the very moment of their destruction’ (Halbwachs, 2020[1950]: 199). Halbwachs further illustrates this by noting that most people are likely to feel more affected by the destruction of a familiar street, building, or home than by even the most significant national, political, or religious events.

This perspective emphasises the historical durability of material structures, not only in a physical sense but also in social and emotional terms, suggesting that the built environment embodies a community’s past. Any significant changes to it, that is, major material events, can also alter the relationship between the community and its physical surroundings in ways that are difficult to reverse. This observation implies that such events can engender distinct path dependences in the evolution of a community and in the ways it is governed. This is consistent with our etymological understanding of dependence as ‘hanging on,’ in which the built environment serves as a fixed point from which community identity and memory remain suspended.

The concept of path dependence illustrates that history matters and that the past shapes both the present and the future. It refers to the abstract state of being dependent on historical trajectories, emphasising how past decisions and events create self-reinforcing patterns that affect future possibilities (Cunningham Sabot and Ročak, 2022; Pinoncely, 2022). Path dependence in governance manifests in the presence and persistence of certain actors, the particular interplay between formal and informal institutions, prevailing power relations, embedded forms of knowledge and expertise, and the hegemony of certain narratives (Van Assche et al., 2014).

In EGT, path dependence refers to rigidity in the evolution of governance, arising from legacies of the past, such as prior decisions or configurations of actors, institutions, and discourses (Van Assche et al., 2011). Since any dynamic process whose evolution is governed by its past is path-dependent, the resulting dependence implies the existence of inertia in governance evolutions, positing that ‘preceding steps in a particular direction induce further movement in the same direction’ (Pierson, 2000: 252; see also David, 2007). Therefore, it is a self-reinforcing process in which successive actions and decisions within a sequence react to those that precede them (Booth, 2011). This means that the evolution of governance always builds on what came before and can never be fully reverted to its previous state (Van Assche et al., 2014). This resulting consistency, therefore, leads to ‘the formation of long-term reproduction of a given institutional pattern,’ which locks actors onto an irreversible path, constraining their scope for action (Mahoney, 2000: 508).

The notion of path dependence becomes notably significant in the context of this study. Although this concept has not been widely employed to elucidate the phenomenon of shrinkage, it could be argued that urban decline often reflects a path-dependent process, particularly in heavily industrialised cities and regions (Pinoncely, 2022). Research on post-industrial landscapes, for instance, demonstrates how the residual material structures of mining and heavy industry continue to frame identity narratives and constrain contemporary development opportunities in regions undergoing structural transformation (Berger, 2019; Mah, 2012).

Recognising path dependences is also important for facilitating the transition to a circular economy, which requires addressing institutional lock-ins and structural constraints, particularly those linked with institutions and discourses established to support the linear economy (Termeer and Metze, 2019). In practice, this implies that circular transitions are shaped by historically produced material environments and the cultural value attached to them, which can complicate efforts to reconfigure or dismantle existing systems, as well as by embedded relationships between key actors that condition the potential for forming new symbiotic or reciprocal arrangements required to close material loops.

Research methodology

Path mapping and process tracing

This study employs path mapping and process tracing to explore the complex evolution of governance configurations in shrinking and post-industrial regions and their influence on transitions to a circular economy. Path mapping constructs a comprehensive narrative of governance transformation by tracing the co-evolution of key actors, institutions, and discourses over time (Van Assche et al., 2019). It identifies turning points (critical junctures) and pivotal events that have shaped resulting governance paths. These insights reveal how governance configurations adapt to changing external circumstances, incorporate emerging discourses like the circular economy, and contend with the constraints of historical material and institutional legacies.

Path mapping is particularly effective in examining the dynamic interplay between discursive and material elements in governance (Van Assche et al., 2022). It reveals how political actions and decisions are shaped by a combination of diverse causal forces, including the dissemination of new discourses and the enduring influence of institutional and material conditions (Duineveld et al., 2017). By integrating these dimensions, path mapping provides a nuanced understanding of how governance configurations evolve in response to the challenges and opportunities posed by circular economy transitions.

Building upon the foundation provided by path mapping, process tracing delves into the underlying causal mechanisms that drive governance decisions and interactions (Beach and Pedersen, 2019). It examines the reasons behind the unfolding of certain events and explains why specific decisions are made or avoided, shedding light on the critical processes that lead to particular governance outcomes. Through process tracing, the study captures the sequence and dynamics of key decisions, revealing how governance actors interpret challenges, negotiate solutions, and align their actions with evolving priorities and enduring constraints. This approach allows for a deeper understanding of the causal factors that influence the adoption of circular economy initiatives within shrinking contexts and shape the resulting governance paths.

Methodologically, this approach is tightly aligned with our conceptualisation of the circular economy as a governance, material, and discursive framework. Path mapping enables us to identify when and how circular economy language appears in policy documents and public narratives, and how these references become linked to broader agendas of shrinkage, regeneration, and regional development. Process tracing then allows us to zoom in on these critical episodes to examine how circular economy framings are mobilised in concrete decision-making processes. Together, path mapping and process tracing create a cohesive narrative of governance evolution. Path mapping provides a structured overview of when and how governance configurations adapt over time, while process tracing adds depth by exploring the ‘why’ behind these changes.

The case: Parkstad Limburg

We applied path mapping and process tracing to the case of Parkstad Limburg, a shrinking post-mining region in the Netherlands. Although not an official administrative division, Parkstad functions as a collaborative entity among its seven municipalities, which are shown in Figure 1. Established formally in 1998 and gaining city-region status in 2006, the Parkstad Limburg Regional Organisation coordinates regional development efforts with limited authority.

Figure 1.

The location and administrative division of Parkstad.

Parkstad’s population peaked at nearly 290,000 in 1995 but has since declined by about 10%, with a current population of 257,660 (Statistics Netherlands, 2022). This demographic contraction has generated numerous challenges, most notably widespread residential and commercial vacancies. The impact of this decline has been particularly pronounced in the municipality of Kerkrade, which has lost over 15% of its residents since reaching peak levels (Marjanović and Lilius, 2025a, 2025b).

While sharing many characteristics with other shrinking post-industrial regions, Parkstad was chosen as an emblematic case study for its unique historical and social dynamics, which exemplify the challenges and opportunities of urban shrinkage and the transition to a circular economy. Historically, the region was shaped by rapid coal mine closures and subsequent deindustrialisation, followed by a distinct large-scale demolition programme that left a visible legacy of loss, vacancy, and contested transformation (Marjanović and Lilius, 2025a, 2025b). Socially, these processes generated strong place attachments, collective memories of the mining past, and recurrent conflicts over demolition and restructuring, which continue to influence how new development strategies are received and negotiated (Hoekstra, 2020; Ročak, 2019).

Taken together, these factors make Parkstad a compelling context for examining how governance systems navigate material and path dependences while fostering innovative approaches to regional development. Specifically, the region’s efforts to integrate circular economy principles into regional governance provide valuable insights into the interplay between historical legacies, socio-economic pressures, and contemporary policymaking.

Data collection and analysis

The research on Parkstad employed a multifaceted approach to data collection, including desktop research, document analysis, interviews, and public media analysis, to comprehensively understand the region’s transition to a circular economy and its relationship to the material and institutional conditions of urban shrinkage. The study began with desktop research, which uncovered extensive historical and contextual data. In addition to diverse online content in both textual and visual formats, 73 relevant literature sources were identified. These materials, primarily in English or translated from Dutch, offered detailed insights into Parkstad’s governance structures and historical context.

Building on this foundation, document analysis further enriched the study by examining 134 documents, including regional and municipal policy plans, public reports, and internal documents. Notable contributions came from the Parkstad Limburg Regional Organisation, which played a key role in coordinating governance efforts on urban shrinkage and the circular economy.

The qualitative dimension of the research was deepened through 30 interviews with stakeholders from various sectors, including municipal officials, academics, corporate representatives, and civic actors. The interviews were semi-structured and followed a broad topic guide covering: (1) regional development, urban shrinkage, and major planning interventions; (2) governance arrangements and actor roles in planning and redevelopment; and (3) the emergence and adoption of the circular economy agenda in Parkstad. Rather than asking directly about ‘material dependence,’ we allowed the material dimension to emerge inductively as respondents discussed specific policy initiatives and spatial restructuring projects they considered important. In the analysis, these spontaneously invoked references to the material environment served as entry points into the relationship among physical structures, governance arrangements, and evolving circular economy framings.

Lastly, public media analysis complemented these findings by examining approximately 100 news articles that focus on Parkstad’s urban shrinkage and circular economy initiatives. Articles from provincial and national outlets, such as De Limburger and De Volkskrant, highlighted the region’s challenges and innovative responses to demographic and economic shifts, including circular economy initiatives.

Data analysis employed an abductive analysis strategy, combining induction and deduction, to explore the relationship between historical and material legacies of urban shrinkage and circular economy transitions. This approach involved tracing evidence from observed outcomes back to potential causes, using qualitative interpretive content analysis to uncover patterns, sequences, and causal mechanisms, and crafting cohesive narratives that connected key actors, events, institutions, material structures, and discourses within Parkstad’s governance dynamics (Beach and Pedersen, 2019). As part of this process, we coded segments where specific places, built structures, or infrastructure were linked to decisions, conflicts, or policy shifts, thereby allowing us to reconstruct how material legacies featured in governance narratives and path-creation efforts.

The growth and decline of Parkstad Limburg

Due to extensive coal mining operations, most of the area of present-day Parkstad was previously known as the Eastern Mining Region (Oostelijke Mijnstreek). During the 1950s, as many as 11 coal mines sustained the region’s thriving economy and provided significant employment in both mining and related industries (Hoekstra, 2020; Muns, 2020; Ročak, 2019). This prosperity, however, began to wane by the 1960s as the mining industry faced growing challenges, including depleted coal reserves, competition from cheaper imports, and the rise of oil and gas as alternative energy sources (Hoekveld and Bontje, 2016; Kasper, 2012; Muns, 2020; VanHoose et al., 2021).

These pressures ultimately led to the national government’s decision to close all coal mines, a process completed by 1974, resulting in substantial job losses across both the mining and associated sectors (Elzerman and Bontje, 2015; Hoekstra, 2020; Kasper, 2012; Muns, 2020). Efforts to offset these closures, including industrial reconversion and the relocation of state agencies and institutions to the region, were insufficient to fully absorb the displaced workforce (Elzerman and Bontje, 2015; Kasper, 2012; Muns, 2020). In addition, former miners were mismatched for white-collar jobs introduced by relocated government agencies and struggled to adapt, leading to dissatisfaction and high turnover (Kasper, 2012; Marjanović and Williams, 2024; Muns, 2020; Ročak, 2019; VanHoose et al., 2021).

In 1975, the government initiated a large-scale restructuring project, officially titled ‘The Remediation of Mine Sites’ (Sanering Mijnterreinen), but more widely recognised by its colloquial name, ‘From Black to Green’ (Van Zwart naar Groen). This initiative sought to erase much of the physical legacy of coal mining, removing nearly all traces of mining infrastructure and heritage and restoring the land for tourism and other uses (Peet, 2013; VanHoose et al., 2021). It emphasised ecological rehabilitation, reflecting broader efforts to reframe the region’s identity from a blackened industrial landscape into a green, natural environment with park-like scenery, which inspired the name Parkstad ¹ (Kasper, 2012; Muns, 2020; VanHoose et al., 2021). Journalist Marcia Luyten vividly described the approach taken during this transformation:

After the mine closed, the scorched earth tactic was used here. Everything from the mines has been rigorously wiped out. ‘From Black to Green’ was the credo. Chimneys, railways, shaft buildings, and slag heaps—everything was blown up, flattened, and planted with greenery. (Luyten, 2012)

This initiative not only failed to address the challenges Parkstad was grappling with but also led to the destruction of the region’s distinctive built environment (Parkstad Limburg, 2010). This erasure of shared history and socio-cultural heritage created a profound void in the community’s sense of identity, eventually giving rise to a collective trauma that deeply affected the psychological well-being of its residents (Elzerman and Bontje, 2015; Hannema, 2021; Hoekstra, 2020; VanHoose et al., 2021).

Consequently, Parkstad faced not only the immediate impacts of mine closures, including high unemployment and economic decline, but also an escalation of social issues and neighbourhood dilapidation (Marjanović and Lilius, 2025a, 2025b). Poverty deepened in mining communities, and areas near former mines became hubs of decay and neglect (Hoekstra, 2020; VanHoose et al., 2021). Social infrastructure, once a cornerstone of community life, deteriorated, exacerbating issues like alienation, domestic violence, crime, prostitution, and drug abuse (Hoekstra, 2020; Kasper, 2012; Luyten, 2012). This social decline, coupled with economic stagnation, led to persistent demographic challenges, including an ageing population, plummeting birth rates, and a steady outflow of residents. By the mid-1990s, all municipalities in Parkstad were experiencing population decline (Marjanović and Lilius, 2025a).

Although local authorities initially dismissed early warnings about declining population, the reality of shrinkage soon became undeniable, with rising residential vacancies and deteriorating conditions in social housing where many former mining families resided (Elzerman and Bontje, 2015; Marjanović and Lilius, 2025b; Verwest, 2011). Housing corporations took the lead in addressing this issue and, by the early 2000s, began demolishing surplus housing stock to alleviate the financial and social burdens of maintaining underutilised facilities (Hoekveld and Bontje, 2016; Hoekstra, 2020; Hoekstra et al., 2020; Marjanović and Williams, 2024).

These efforts eventually captured the attention of regional and national policymakers, who recognised the challenges of managing a declining housing market, including the financial strain of widespread demolitions (Marjanović and Williams, 2024; Verwest, 2011). By the late 2000s, regional actors began to accept shrinkage as a structural reality rather than a temporary setback (Marjanović and Lilius, 2025b). This shift in perspective led to the development of the Regional Programme ‘Towards a Sustainably Vital Region’ in 2010, which outlined a comprehensive 10-year action plan to restructure housing, retail spaces, and public services in response to demographic shrinkage (Marjanović and Williams, 2024; Parkstad Limburg, 2010). The strategy prioritised adapting the existing built environment to align with a smaller population by targeting the demolition of approximately 8000 housing units and over 100,000 m² of office space by 2020 (Marjanović and Lilius, 2025b).

A cornerstone of these efforts was the urban renewal initiative IBA Parkstad, which adopted the renowned Internationale BauAusstellung (IBA) concept to serve as a pivotal tool for implementing spatial restructuring and addressing demographic challenges (Marjanović and Williams, 2024). Focused on revitalising the region by executing 50 urban transformation projects, IBA Parkstad integrated demolition, repurposing of vacant properties, and strategic investments in public infrastructure. This initiative underscored a broader commitment to long-term regional revitalisation, positioning spatial restructuring as a central strategy to mitigate the impacts of sustained population decline and reinvent regional identity (Marjanović and Lilius, 2025b).

Community backlash against demolition and the emergence of the circular (construction) economy

The emergence of the circular economy agenda in Parkstad is rooted in its history of growth and decline. During the 1950s, the region experienced unprecedented demographic and economic growth. Regional coal production peaked, and the population grew by one-third compared to post-World War II levels. With the expectation of further demographic growth, a housing shortage became apparent. However, space for new development was limited due to the mining infrastructure dominating the landscape. Consequently, the 1962 regional plan recommended establishing large residential estates within existing mining settlements (Hoekveld and Bontje, 2016; Province of Limburg, 1962).

In 1967, a residential complex comprising four high-rise apartment buildings was constructed between the streets Voorterstraat, Ursulastraat, and Jonkerbergstraat in Kerkade’s neighbourhood of Bleijerheide (Marjanović and Williams, 2024). Each building was 10 storeys high and housed 100 dwellings. Due to Kerkrade’s border location and the introduction of a housing subsidy scheme, ² many immigrant families, mainly from Germany, moved to the area during the 1970s and 1980s, integrating with the existing mining households (Hoekveld and Bontje, 2016). This influx gave Bleijerheide a distinct multicultural vibe, with the apartment complex becoming home to a diverse but tightly-knit community (Maurer, 2015; Marjanović and Williams, 2024).

However, the once-idyllic community life began to crumble with the onset of sustained population decline in the early 1990s and the rise of social problems. Many residents left the area as crime and drug trafficking increased. By 2010, Kerkrade had lost 11% of its peak population, the highest in Parkstad, with Bleijerheide experiencing the greatest concentration of vacancies, unemployment, and poverty.

Following the adoption of the regional restructuring programme in 2010, the social housing corporation HEEMwonen, which manages properties in Kerkrade, reached agreements with the municipal government to reduce its housing stock. They chose the complex in Bleijerheide for demolition due to low occupancy and structural deterioration, which caused substantial energy losses (Marjanović and Williams, 2024). At that time, the four high-rise buildings had fewer than 300 occupied units. Anticipating further population decline, a plan was devised to reduce the overall capacity to 125 dwellings.

Residents vehemently objected to this decision, expressing concerns about the potential loss of important social values and harm to community life (Maurer, 2015; Marjanović and Williams, 2024). Despite the opposition, HEEMwonen proceeded with the plan, and building ‘A’ on Voorterstraat was demolished in 2012. However, after encountering a similarly negative response to housing demolitions in the neighbouring area of Heilust, HEEMwonen’s representatives reconsidered this approach (Marjanović and Williams, 2024). They realised that large-scale residential demolition extends beyond the physical destruction of buildings by also eroding community values and disrupting the social fabric. A former employee reflected:

After demolishing the first apartment building, we realised that it was also a large demolition of quite some value linked to this property. People lived together there for years, sharing values, supporting each other, and maintaining their own social system. They were very happy there. If you demolish it, you also lose all these values and the social system, leaving you with only a huge pile of materials.

This reflection illustrates how the physical structure of the apartment complex had come to support a distinctive social system in which long-term co-residence, shared communal spaces, and familiar layouts fostered routines of mutual support and belonging (Maurer, 2015). The erosion of these intangible forms of social infrastructure through demolition clarified the need for spatial restructuring to incorporate social and relational dimensions alongside material ones—what later became articulated as ‘social circularity’ (Durmišević, 2018; Hermans, 2022). Believing that ‘demolition is always possible,’ Michiel Wauben, a former development manager at HEEMwonen, proposed a plan to transform the residential estate in Bleijerheide in a way that would preserve the neighbourhood’s material and social values (Banach, 2020). Figure 2 illustrates this idea: the estate enclosed by a protective wall, symbolising the goal of safeguarding community values. A former employee explained:

Our ambition was pretty abstract. We said, let’s see this site as an island with a big wall surrounding it, and everything stays inside—nothing can leave, and nothing can go inside.

Figure 2.

The SUPERLOCAL project idea and the location (HEEMwonen, 2014: 4).

In collaboration with the architectural firm Maurer United from Maastricht, Wauben developed a project plan to bring his vision to reality. The plan aimed to revitalise Bleijerheide by reducing the number of dwellings in the three remaining high-rises to 130 through deconstruction while leveraging the potential of on-site demolition materials and harnessing local knowledge (Buis, 2022). By maximising the reuse of available materials and fostering community engagement, this comprehensive approach sought to preserve the community’s identity, strengthen existing social structures, and enhance the neighbourhood’s character (Marjanović and Williams, 2024). For instance, one of the proposed solutions was to cut out an entire apartment from the building and then place it on the ground as a new free-standing home (Buis, 2022).

Residents were actively engaged in every stage of the planning process. Architect Nicole Maurer collected their stories about life in the apartment complex, compiling them into a book titled ‘Everyone Felt at Home Here’—Jidderinne vólt ziech doa heem in the local dialect (Maurer, 2015). This collection served as the foundation for preserving community values and residents’ memories throughout the transformation process. The project was named SUPERLOCAL to reflect its focus on harnessing locally sourced materials, social values, and community capital (Marjanović and Williams, 2024). Its motto became ‘Slow, Less, Local,’ emphasising the importance of taking time for experimentation, reducing the number of homes, and prioritising collaboration with local residents (Banach, 2020).

In 2015, SUPERLOCAL was integrated into IBA Parkstad and redefined to align with the broader ambitions of the IBA initiative, encompassing an expanded vision for neighbourhood transformation and additional experimentation with the reuse and recycling of demolition materials in the construction industry. The principal objective outlined in the project plan was to develop 100 new homes by recycling all the existing qualities, values, materials, and ideas (HEEMwonen, 2014; Marjanović and Williams, 2024).

SUPERLOCAL underwent a further transformation in 2016 when HEEMwonen and their regional partners, including the Parkstad Limburg Regional Organisation, decided to seek funding from the Urban Innovative Actions (UIA) initiative under the circular economy theme. Not only was the project’s scope significantly expanded to include additional interventions, such as constructing model housing units that showcased various reuse and recycling techniques (these test homes are shown in Figure 3), but to align more closely with the funding theme and its narrative, SUPERLOCAL was rebranded as Super Circular Estate—Europe’s first circular estate (Marjanović and Williams, 2024). The project’s goal became the management of urban shrinkage by developing material and social circularity in the social housing sector. The term ‘social circularity’ was invoked to capture the social dimension of circular construction, referring to community values and a sense of belonging that actors sought to preserve and carry forward through circular interventions by reusing not only physical structures and materials but also the social arrangements and community ties they had sustained (Durmišević, 2018; Marjanović and Williams, 2024).

Figure 3.

A model house built completely from materials available at the SUPERLOCAL site (authors, September 2021).

SUPERLOCAL was officially awarded a 5-million-euro UIA grant in October 2017. This milestone soon inspired other IBA Parkstad projects to integrate the social circularity aspect into their efforts to experiment with reusing construction materials. Their principal aim became to keep communities intact as the physical environment changed and to design circular initiatives that supported everyday social life rather than focusing solely on material efficiency (Marjanović and Williams, 2024). A notable example is the redevelopment of the Treebeek neighbourhood in Brunssum by the social housing corporation Wonen Zuid. In this project, not only were materials from the demolition of 98 small apartment buildings repurposed to construct 48 single-family homes, but familiar built environment components and local values were reportedly incorporated into the redesign of public spaces, creating a sense of familiarity for residents and encouraging social interaction (Gietema and ’t Hooft, 2020; Marjanović and Williams, 2024). Similarly, the SLOTLAB initiative was launched in 2018 to aid in the reconstruction of Castle Schaesberg in Landgraaf. This project focused on exploring how circular material flows could be leveraged to preserve and maintain historic buildings and heritage sites, reinforcing their role as repositories of regional identity and cultural memory (Marjanović and Williams, 2024).

As a result, circular construction became embedded in IBA Parkstad’s agenda as more than an efficient response to the pressing challenge of demolishing vacant residential spaces. Rather than being framed solely in terms of reusing building materials, it was understood primarily as the continuation and reconfiguration of valued social relations and everyday community practices—what we refer to as ‘social circularity.’ In this way, circular construction was positioned not only as a strategy for managing material transformation but also as a means of preserving continuity, belonging, and social value in the course of spatial restructuring.

Reinventing the regional identity through the circular economy

The large-scale destruction of mining heritage in the 1970s left a lasting and bitter memory among Parkstad’s residents, who felt that their identity had vanished with the mines and therefore remained deeply mistrustful of government interventions, especially those involving physical destruction. This collective trauma resurfaced with the political acknowledgement of shrinkage and residential vacancy, causing plans for spatial restructuring targeting old residential complexes from the mining era to face strong public opposition. While demolition has traditionally been a preferred tool for adjusting the housing market to reduced demand in the Dutch context, the rise in such activities across Parkstad was seen as another attack on regional identity, echoing the infamous ‘From Black to Green’ initiative (Hendriks, 2022). As a result, regional leadership and housing corporations were strongly criticised for prioritising physical reconstruction over social concerns, with calls for greater appreciation of local history, sense of place, and community values. A project officer at IBA Parkstad elaborated:

There is a big question about renewing the neighbourhoods here, and if there is a different way than just demolishing. This question is important because a lot has been demolished after the mines closed. In just 10 years, everything was completely erased, almost as if it should not have been there at all, as if we should be ashamed of it. At that time, they thought that that was the best they could do: erase the past, start over, and make something totally new. But in that way, the region’s identity was erased, too.

A local activist explained further:

They are not trying to preserve the history, the oral history and the emotional history of a place and what it means for the people who live there—they care more about the stone than the people.

Public resistance to demolition meant that initial efforts to dismantle vacant homes in urban neighbourhoods were slow and challenging. However, following the perceived success of SUPERLOCAL, circular construction emerged as a viable and socially preferable alternative. Commercial actors involved in the project and other circular initiatives within the region increasingly framed circular construction as the antithesis of demolition, adopting the maxim: ‘demolition waste is a design flaw’ (sloopafval is een fout in het ontwerp; Banach, 2020). Meanwhile, policymakers shifted their focus toward promoting deconstruction, material reuse, and social circularity. Residential demolition began to be framed negatively, with policy discourse highlighting its adverse impacts on the social fabric, sense of community, and residents’ connection to place (Buis, 2022). In contrast, circular initiatives were praised for their attention to community values, local heritage, and place identity. A policy officer at the Parkstad Limburg Regional Organisation explained:

We still have a lot of transformation to do, and if we do it in a circular way, it will be better for everyone, and people will be happy. You see, if you are going to reuse the elements of the mining heritage, you have to make sure that people still identify with the area where they live. This is very important in Parkstad because many residents are children or grandchildren of people who worked in the mines and still have some warm memories of those times.

A local activist shared a similar view:

The concept of circularity within this narrative of shrinkage is very much about preserving heritage. So yes, we have a big wrecking ball that’s going to destroy your flat, but we’re also going to use the pieces that are left behind, and we’re going to build something new out of it.

This shift in discourse enabled policymakers to approach demolition differently. To rekindle enthusiasm for addressing vacancies and bolster public support for spatial restructuring, they increasingly leveraged circular construction discourse to emphasise renewed political appreciation for the region’s history, identity, and heritage (Banach, 2020; Buis, 2022; Hermans, 2022). Circular initiatives in construction were thus portrayed as more than just the reuse of building materials, offering a way to transform neighbourhoods while preserving community identity, and as such stood in stark contrast to demolition, which left no trace of the past.

This was achieved primarily by highlighting the social circularity aspect of these interventions, especially in relation to IBA Parkstad projects (Durmišević, 2018; Gietema and ’t Hooft, 2020; Hannema, 2021). According to communications from IBA Parkstad, social circularity involves finding better ways to repurpose recognisable elements of the built environment while preserving fundamental community values, fostering a sense of belonging, and strengthening regional identity (Hermans, 2022). For instance, in the SUPERLOCAL project, prospective residents of newly constructed circular homes were required to submit motivation letters attesting to their commitment to upholding the social character of the original apartment complex. A project officer at IBA Parkstad explained:

The question of identity and the meaning of this region is very important in the circular projects that IBA does, and SUPERLOCAL in particular. It is not about demolishing and building things anew, but about finding smarter ways to reuse things from history that are recognisable to people who live there and give them a new function.

By reusing both the physical and social aspects of the built environment, circular construction initiatives in Parkstad were said to showcase the region’s history in a modern context, effectively bridging past and present. Much like the well-known Mijnwater project (Verhoeven et al., 2014), which uses water from the flooded underground mining galleries to heat and cool public buildings and private homes in Heerlen (earning praise for transforming mining heritage into a foundation for modern energy solutions (Parkstad Limburg, 2010)), initiatives such as SUPERLOCAL and Treebeek were also acclaimed for honouring the mining legacy by shifting from underground coal extraction to utilising aboveground ‘material mines’ (Banach, 2020).

Policymakers also promoted the role of circular construction in restoring pride and strengthening the identity of old mining communities (Parkstad Limburg, 2018). The historical significance of circular interventions was underscored by the designation of old high-rise buildings slated for restructuring as ‘iconic’ locations. For example, the apartment block in Bleijerheide was regarded not only as a landmark for residents but as ‘a highlight of Parkstad’—situated at one of the region’s highest points, it offered sweeping views of nearly the entire area. This perspective motivated the preservation of one of the original buildings, as illustrated in Figure 4. A local consultant explained:

Our identity was totally lost. Now you see that people embrace the history. We can’t use everything from the past, but there are still some nice buildings that were not demolished in the 1970s. The benefits of these kinds of projects are much different from purely material interventions. One of the nicer things is that you connect the past and the work that people did on the ground with the future. And it also tells people that what they did matters, that their work is not lost, and that it has not been for nothing.

Figure 4.

Regarded as a ‘highlight of Parkstad,’ one of the original buildings at the SUPERLOCAL site was preserved (Authors, September 2021).

Nonetheless, the discourse surrounding circular construction is not solely about the past. Parkstad’s decision-makers have also used the circular economy and social circularity narratives to rebrand the region and set a new development direction, with many interviewed regional actors viewing the success of circular initiatives as a promising way to forge a new regional identity rather than reverting to mining history. The positive reception of circular construction in public policy and the media at regional, national, and European levels was seen as a lever to move beyond a backwards-looking mindset and to inspire a forward-looking narrative. A local activist reflected:

The story of circularity could succeed in framing the region differently and loading it with projects that articulate a new narrative that is more future-oriented. Former industrial regions tend to be backwards-oriented, to look at the past because it was glorious, and now it’s declining. You have to find a new narrative that is optimistic and future-oriented.

This interpretation positioned circular transition in Parkstad as a vehicle for regional revitalisation and a potential catalyst for a wide range of socio-economic benefits, including job creation, improved public health, better living environments, and stronger social cohesion (Marjanović and Williams, 2024). Yet, despite this optimism, many circular initiatives have remained bounded pilot projects tied to temporary funding programmes rather than components of a coherent long-term strategy, while housing corporations and municipal authorities continue to operate under significant financial and regulatory constraints. Moreover, although the idea of circular construction has entered Parkstad’s political discourse, it has not yet been systematically embedded in routine planning or construction practices, while a consolidated long-term vision for circular transition has been adopted only recently (Parkstad Limburg, 2024). These limits underscore that circular economy discourses can help reframe and adjust existing paths, but they may not fully eliminate the structural bottlenecks associated with sustained shrinkage and economic restructuring.

How material and path dependences shape the governance of circular transitions

The case of Parkstad exemplifies the etymological understanding of material and path dependences, as regional governance approaches to tackling urban shrinkage and transitioning to a circular economy remain ‘suspended’ from the region’s mining history, both materially and socially. In particular, the traumatic memory of mine closures and the destruction of mining heritage serves as a historical anchor that constrains current efforts at path creation and regional transformation. This legacy has produced a durable path dependence, rooted in a deep-seated public sentiment of lost identity and the glorification of the region’s mining legacy. In response, regional actors have pursued a series of deliberate spatial interventions aimed at reinventing regional identity and rebuilding a sense of collective belonging. These efforts have recently been reinforced by prioritising spatial restructuring and housing demolition as key strategies to address the challenges of urban shrinkage and reframe the regional profile.

However, the traumatic memory of physical destruction following the obliteration of mining heritage through the ‘From Black to Green’ initiative has instilled a deep-seated resistance toward large-scale residential demolition among Parkstad’s residents. This resistance prompted the initiation and growing prioritisation of circular construction initiatives as both a socially acceptable means to counter rising vacancy rates and a strategic pathway to reviving regional identity. In particular, aiming to promote a renewed sense of identity that is both rooted in history and forward-looking, the discourse surrounding circular construction underscored what we refer to as ‘social circularity,’ emphasising the importance of reusing recognisable physical and social elements of the built environment to restore a feeling of pride in the mining legacy and maintain a sentiment of belonging within the community.

At the same time, the destruction of the mining heritage following the mines’ closure brought about a profound shift in Parkstad’s material conditions. As mining infrastructure and land were replaced by expansive green spaces, the regional landscape underwent a fundamental transformation. Recent efforts to implement spatial restructuring in response to mounting residential vacancies amidst urban shrinkage have converged with this past material event, unveiling a novel material dependence centered on the legacy of old high-rise buildings originally constructed at the peak of mining activity.

Given the deep resonance of mining history and identity with Parkstad’s residents, these material structures, representing some of the last vestiges of that era, have evolved into symbolic landmarks of the region, embodying the community’s historical memory, and the prospect of their demolition did not garner a favourable public reception. In response, the discourse surrounding circular construction had to be adeptly reshaped to align both with the appreciation of the region’s mining legacy and ongoing efforts to tackle residential vacancies through spatial restructuring. To that end, Parkstad’s iconic buildings from the mining period were effectively positioned as critical repositories not only of material resources but also of collective memory that would find renewed purpose and relevance through circular endeavours. By doing so, the circular economy agenda was seamlessly integrated into broader governance objectives, balancing the imperatives of spatial restructuring with the local community’s emotional attachments to the region’s material environment.

Therefore, like an object suspended from a fixed point, Parkstad’s governance actors have found ways to move within the constraints imposed by the material and path dependences rooted in traumatic historical events and their lingering emotional and physical legacies. These dependences have interacted with the efforts to govern urban shrinkage, giving rise to distinct strategies in adopting and advancing the circular economy agenda. Notably, public sentiment of lost identity associated with the trauma of large-scale demolition of the region’s material environment has steered decision-making surrounding the circular economy transition away from purely material considerations and technocratic solutions. Instead, these material and path dependences have necessitated governance approaches that actively engage with community values, historical memory, and social cohesion through participatory processes. In this context, the circular economy concept, particularly through the social circularity dimension, has lent itself as an ideal vehicle for reaffirming enduring governance goals stemming from these material and path dependences while concurrently catalysing ongoing initiatives targeted at addressing the structural challenges of economic and demographic decline.

In particular, the emphasis on ‘social circularity’ within the discourse on circular construction enabled a reinterpretation of spatial restructuring goals in ways that acknowledge the deep-seated connection between aged residential buildings, local communities, and the region’s mining identity. Such a reinterpretation allowed a more favourable governance narrative to take hold, one that prioritises historical continuity while fostering reinvention, and thereby helps reconcile the structural challenges of urban shrinkage with the region’s socio-cultural realities.

This framing of social circularity differs somewhat from Hobson’s (2020) mainstream account, which defines it as the embedding of circular practices in everyday social relations and material cultures. In Parkstad, however, the term extends beyond everyday practices to denote a governance-oriented effort to preserve and reconfigure the social infrastructures that are anchored in the built environment and threatened by spatial restructuring. Here, social circularity operates less as a critique of consumer practices and more as a strategic lens through which policymakers, housing corporations, and community actors negotiate how material transformation can proceed without severing the social ties and place-based attachments that constitute community life in a shrinking post-mining region. In this sense, social circularity encompasses the retention of local social capital and community ties, collaborative approaches to defining future circular development pathways, and the pursuit of additional social goods such as improved living conditions, access to communal spaces, and housing forms better aligned with residents’ needs.

These insights also illustrate how alterations in the physical environment can precipitate changes in governance configurations. The shift from a conventional demolition programme to a circular redevelopment pilot brought housing corporations, municipal authorities, regional bodies, local communities, and new intermediaries together in novel coalitions with redistributed responsibilities. In line with our conceptual argument, the changing material situation did not simply follow established governance paths but created pressures and opportunities to renegotiate how interventions in the built environment were governed and which priorities should guide them. This renegotiation unfolded through three key developments. The first was the regional acceptance of shrinkage and the adoption of the 2010 restructuring programme. The second was marked by the backlash following the 2012 demolition in Bleijerheide and the subsequent emergence of SUPERLOCAL through collaboration among HEEMwonen, architects, and residents. The third involved SUPERLOCAL’s incorporation into IBA Parkstad in 2015 and its subsequent expansion through the UIA-funded trajectory in 2016–2017, during which the prioritisation of social circularity became more explicit. Taken together, these moments mark the shift from a demolition-led response to shrinkage towards an approach consolidated in the circular construction agenda, in which material reuse, social value, and regional identity became more central organising principles of intervention.

Conclusion

This article has contributed to debates on material-centric conceptualisations of the circular economy by foregrounding the broader social meanings, political dynamics, and cultural attachments through which circularity is negotiated. Specifically, it has demonstrated that in a shrinking post-mining region, circular considerations extend beyond concerns with resource efficiency and business models, drawing instead on material legacies of mining and giving rise to forms of ‘social circularity’ rooted in memory, identity, and belonging. In this sense, the circular economy operates as a discursive framework of value, enabling actors to mobilise particular symbols and narratives to reinterpret post-mining legacies, articulate new relationships between communities and their built environments, and reframe and justify particular development trajectories.

Our findings indicate that, although materials may be separated from the physical structures they form, as emphasised in prevailing circular economy discourse, they remain deeply intertwined with the social fabric of the communities in which they are embedded, as argued by Halbwachs (2020[1950]). This suggests that, in shrinking and post-mining contexts, the material conditions of the built environment resulting from industrial decline and population loss significantly shape the discursive framings and conceptualisations of the circular economy. These discourses become tailored to the distinctive needs and aspirations of managing the material legacies of industrial restructuring and urban shrinkage by reframing them as tangible and actionable resources for governance. This observation stands in contrast to growth contexts, where circularity in the housing sector typically centres on reducing the environmental impacts of new construction through design-for-disassembly or low-carbon materials (Fratini et al., 2019; Obersteg et al., 2019). In shrinking areas, however, circularity is conditioned by material and path dependences, suggesting that circular interventions must work with an inherited, often oversized, and socially embedded housing stock, as well as the social relations and place attachments that this built environment supports.

This conditioning stems from the enduring legacies of specific material events that shape collective memory, influencing how shrinking communities perceive their past and envision the future (Halbwachs, 2020[1950]). Consequently, the governance of these localities becomes closely linked to the interpretations of these shared, often traumatic, memories, especially as efforts to govern urban shrinkage bring them to the forefront of the political discourse. Circular economy discourse is therefore shaped by both the evolving dynamics of economic and demographic decline and the underlying socio-material legacies of the past.

In Parkstad, the transformation of mining landscapes and the preservation of iconic mining-era buildings have created a context in which the circular economy is promoted not only for repurposing existing built structures but also for preserving collective memory. In this sense, the strategic turn toward circular construction addresses the practical imperative of spatial restructuring while also reflecting longer-standing political objectives of redefining regional identity and responding to the collective trauma associated with the destruction of mining heritage. Circular construction thus comes to be framed not merely as a favourable alternative to demolition, but as a new narrative through which shrinking communities can reconnect with their historical roots. This framing resonates strongly in a post-mining region where the search for a new identity remains deeply intertwined with attachment to mining history and the desire to honour the (glorious) past, making belonging and heritage powerful political resources in support of the circular economy.

By addressing these critical social dimensions and moving beyond purely material considerations, actors in Parkstad were able to leverage the circular transition to navigate underlying material and path dependences and support ongoing reinvention efforts. In this way, the circular economy becomes a malleable and adaptive framework that captures both material conditions and their place-based significance, while advancing pragmatic efforts to address urban shrinkage. It thus emerges as a valuable tool for actors in shrinking contexts to reframe development pathways.

Realising these opportunities, however, requires active and holistic engagement with the critical relationships between material change, governance of shrinkage, and place-based attachments and meanings. We therefore argue that governing the transition to a circular economy in shrinking contexts cannot be confined to merely optimising technical systems, policies, or business models to ensure the smooth circulation of materials. It must also address the meanings, attachments, and power relations that materials embody in the built environment. For policymakers in such contexts, this implies starting from the existing built environment and its community ties and treating buildings and infrastructures not only as material stocks but also as carriers of memory, identity, and everyday routines and co-designing decisions about spatial transformations with affected residents and local organisations, so that circular interventions support rather than disrupt social continuity and community structures. In this way, attending to the social, cultural, and political aspects of material circulation in governance provides a compelling impetus for advancing circular transitions, particularly in urban and regional contexts seeking reinvention.