In the contemporary era, urban governance faces challenges such as environmental pressures, rapid urban population growth, resource constraints, and increasingly complex managerial structures. The circular economy, as an innovative and effective approach to addressing these challenges, emphasizes recycling, reuse, waste reduction, and improved resource efficiency, thereby playing a significant role in achieving urban sustainability (Geissdoerfer et al. 2017). The aim of this study is to propose a localized model for the development of good urban governance based on the circular economy in Iran. An exploratory mixed-methods design (qualitative → quantitative) was employed.
In the qualitative phase, grounded theory following Strauss and Corbin (2015) and purposive–snowball sampling were used. Semi-structured interviews were conducted with 15 academic experts and senior urban managers until theoretical saturation was achieved. In the quantitative phase, the statistical population consisted of senior managers and experts of the Tehran Municipality. The sample size was estimated using Cochran’s formula, and 110 questionnaires were collected through convenience sampling. Content validity was confirmed using Lawshe’s index, and reliability was verified through Cronbach’s alpha. Data were analyzed using SmartPLS software.
The findings indicate that the development of good urban governance based on the circular economy is influenced by causal conditions (green innovation, environmental requirements, and circular infrastructures), contextual factors (strengthening institutional capacity, sustainable transport and energy infrastructures, and circular businesses), and intervening factors (legal structures, public culture, and education). Through strategic actions, these factors lead to outcomes such as enhanced transparency, accountability, environmental justice, citizen participation, and sustainable urban development—results consistent with studies on governance and public trust by Börzel and Grimm (2018), Beshi and Kaur (2020), and Jameel et al. (2019). The proposed model can serve as a strategic framework for urban policy planning, resource management, and facilitating the transition toward sustainable urban development for municipal managers and policymakers.