COMMUNITY-BASED CIRCULAR ECONOMY IN RURAL AREAS: WASTE VALORIZATION AND ECONOMIC INCENTIVES IN WASTE BANKS (THE CASE OF THE CIAMIS WASTE BANK)

Abstract

This study aims to analyze the role of the Ciamis Waste Bank within a community-based circular economy framework by examining the relationship between community participation, institutional support, waste valorization, and economic incentives. The study employs an explanatory quantitative approach using a cross-sectional survey design involving 80 active participants of the Ciamis Waste Bank selected through purposive sampling. Data were collected using a five-point Likert scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that community participation has a positive effect on economic incentives and waste valorization, while institutional support has a positive effect on waste valorization but does not directly affect economic incentives. Waste valorization was also not found to have a direct effect on economic incentives. Furthermore, institutional support positively moderated the relationship between community participation and waste valorization, and negatively moderated the relationship between waste valorization and economic incentives. These findings indicate that the success of rural waste banks is determined not only by community involvement and material recovery processes but also by institutional capacity in managing value conversion and the distribution of economic benefits. This study contributes to strengthening community-based circular economy models within the context of rural entrepreneurship.