Background and aim. The reuse of Precast Concrete Elements (PCEs) offers a promising method to reduce emissions in construction. However, economic feasibility remains a significant barrier to widespread implementation. While technical challenges and value creation within supply chains have been explored, limited research addresses the economic aspects.

Methods and Data. This study constructs a supply chain model to compare standard demolition, PCE reuse, and construction with virgin materials. We investigate economic factors influencing building owners’ decisions to donate or sell PCEs, building buyers’ choices to use reclaimed materials, and the profitability of individual actors and the overall supply chain. Using 54 data sources, we identify cost and profitability drivers and analyze key decisions through economic theory and cost management perspectives.

Findings. Building owners have strong incentives to donate or sell PCEs for reuse, while buyers' decisions are highly context-dependent. Key costs in PCE reuse include deconstruction, refurbishment, storage, and transportation, while cost reduction drivers stem from savings on landfill fees, material costs and production costs. Long-term profitability depends on economies of scale, new markets, and innovation.

Implications. Investments can already focus on the most promising opportunities, but further research on cost structures, regulatory impacts, technological innovations, and supply chain dynamics is essential to guide decisions. Economies of scale, learning curves, and technological advancements offer significant potential to improve economic feasibility.