Search

Dematerialization at the national level occurs almost exclusively during periods of economic recession or low growth. While recession is not a sustainable strategy to curb environmental impact, such periods may offer important insights on the possibilities of reducing material use. Economic recession research has focused on the interactions between macroeconomic and financial variables with little systematic research dedicated to uncovering how resource use develops during periods of recession. Using a dynamic panel model, we investigate whether and to what extent material use in a sample of 150 economies between 1970 and 2010 was affected by recession and low growth. Recession occurred most frequently and in more than two thirds of all countries during the 1980s and the 1990s. In the 2000s, more than half of the recessions occurred during the financial crisis of 2008. Periods of recession were significantly and negatively correlated with material use - they tended to coincide with dematerialization. Material use decreased in recession years, but the significant correlations with growth in material use became weaker as growth rates increased. Construction minerals and metals, used to build stocks of manufactured capital, reacted more strongly to economic fluctuations than the throughput-dominated flows of biomass and fossil fuels. We conclude that the systematic link between recession and dematerialization can become policy-relevant if the mechanisms causing reductions in material use during these periods are identified. [ABSTRACT FROM AUTHOR]

Abstract The research on economic recession has been more focused on the interactions between macroeconomic and financial variables. However, whether material use has been affected during the recession period has remained under-explored. In order to fill up this gap, this study investigates the relationship between material use and economic recession, as well as other socio-economic drivers, by using the material flow analysis and the system generalized method of moments for 157 economies worldwide during 1980–2011. Results show that economic recession poses significant and negative impact on domestic material consumption at 1% level, illustrating its role as a determinant factor on material mitigation. By dividing the research sample into extractive and non-extractive economies, as well as high-, mid- and low-income groups, we again confirmed the significant negative correlations as expected. No significant sign is found between recession and physical trade balance. Besides, other drivers such as population, Gross Domestic Production (GDP) per capita and technological variables also exert marked effects at different situations. This research work provides an empirical study on how recession and other factors affect material use at various scenarios, which have essential implications for understanding material flow dynamics in different economic cycles. Graphical abstract Image 1 Highlights • Recession is the determinant factor in reducing material use. • Recession-material nexus varies along with countries of different income levels and trade patterns. • Recession has no explanatory power to physical trade balance. • Income significantly promote material consumption. • Expansion of service sector helps to reduce material consumption. [ABSTRACT FROM AUTHOR]