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2014 | Buch

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Development Patterns of Material Productivity

Convergence or Divergence?

verfasst von: Larissa Talmon-Gros

Verlag: Springer International Publishing

Buchreihe : Contributions to Economics

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Increasing concerns regarding the world’s natural resources and sustainability continue to be a major issue for global development. As a result several political initiatives and strategies for green or resource-efficient growth both on national and international levels have been proposed. A core element of these initiatives is the promotion of an increase of resource or material productivity. This dissertation examines material productivity developments in the OECD and BRICS countries between 1980 and 2008. By applying the concept of convergence stemming from economic growth theory to material productivity the analysis provides insights into both aspects: material productivity developments in general as well potentials for accelerated improvements in material productivity which consequently may allow a reduction of material use globally. The results of the convergence analysis underline the importance of policy-making with regard to technology and innovation policy enabling the production of resource-efficient products and services as well as technology transfer and diffusion.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

This chapter introduces the topic of natural resource productivity. It provides an overview over the structure of the book and highlights the most important definitions in this context.

Larissa Talmon-Gros

Theoretical Foundation and Existing Empirical Evidence

Frontmatter

Chapter 2. Overuse, Scarcity, and the Debate About Sustainable Development

Abstract

This chapter lists five exemplary areas where overuse of natural resources can be observed: those include climate change, the overuse of renewable resources, the use of nonrenewable resources and its consequences, the destruction of ecosystems, species, and landscapes, as well as threats to human health. The economic reasons for an overuse of natural resources are discussed briefly. The most important factors in this context are poorly defined property rights and public good characteristics inherent in some natural resources. Besides economic factors, a variety of other contributing factors such as population growth, economic growth, economic structure, consumption patterns, or technology are mentioned. As a consequence to the overuse of natural resources, sustainability and environmental policies, such as the Flagship Initiative for a Resource Efficient Europe by the European Union as well as “Green Growth” initiatives, for instance by the OECD or the UNEP have been initiated and their main aspects are presented.

Larissa Talmon-Gros

Chapter 3. The Relationship Between Technological Progress and Material Consumption

Abstract

This chapter revises the role of technological progress plays for material consumption. In this context, eco-innovations are at center stage. Besides product and process innovations, a distinction between end-of-pipe technologies and integrated technologies can be undertaken. There are two forms of associated externalities occurring with eco-innovations: specifically, positive externalities occur due to knowledge spillovers, while negative externalities occur as producers are able to utilize the environment but do not have to bear the full cost associated with the production. As price signals are distorted, the theory of induced innovation suggests that innovation will be more pollution-intensive than it would otherwise be. The theoretical basics of the idea of induced innovation are presented in Sect. 3.2.

Larissa Talmon-Gros

Chapter 4. Convergence: Theory, Econometrics, and Empirics

Abstract

This chapter presents the theoretical background, the econometrics, and some empirical evidence with regard to convergence. Section 4.1 presents the basic Solow–Swan model, the starting point for analyses of convergence as well as the convergence properties in Schumpeterian models of endogenous growth. Section 4.2 discusses the econometric methods for examining convergence applied in this analysis. Those include growth regressions, (dynamic) panel approaches in terms of fixed effects models as well as panel unit root tests (Im, Pesaran, and Shin as well as Maddala and Wu/Choi). This chapter concludes with a review of empirics of convergence of different economic variables like for instance per capita income, labor productivity, energy productivity, or CO₂ emissions.

Larissa Talmon-Gros

Chapter 5. Material Productivity Measurement

Abstract

This chapter presents the methods for measuring material productivity. Material productivity is a composite indicator of GDP and material consumption. In Sect. 5.1 material flow analysis—the method for measuring material consumption—is presented and discussed. This includes its intellectual origins dating back to the 1960s as well as the basic concept and accounting methodology. The manifold uses of material flow analysis include measuring decoupling and dematerialization. The indicators relevant for this analysis are described in more detail and their limitations are discussed. Section 5.2 focuses on the measurement of productivity by means of productivity indicators. Single and multifactor productivity measures are described and issues concerning productivity indicators in general are discussed.

Larissa Talmon-Gros

Chapter 6. Empirical Evidence on the Development of Material Consumption and Material Productivity

Abstract

This chapter reviews existing empirical evidence with regard to the state and development of material consumption and material productivity. This includes studies on material use over the twentieth century as well as more detailed analyses of material consumption and material input in absolute values as well as per capita and material productivity. Reviewing existing empirical evidence suggests that the question of whether material productivity follows any regular patterns has not been analyzed in a panel framework with yearly data yet.

Larissa Talmon-Gros

Empirical Analysis of Material Productivity Convergence

Frontmatter

Chapter 7. Research Question

Abstract

This chapter presents the research question as well as the motivation for an analysis of material productivity convergence. The development patterns of material productivity in the OECD and BRICS countries between 1980 and 2008 are examined for two reasons: firstly, insights into material productivity patterns can contribute to the understanding of TFP growth, and secondly, it can contribute to the debate about sustainable development by revealing potentials for a reduction of material use globally. This chapter also discusses the relations between the development of GDP, material consumption, and material productivity. It is made clear that an increase in material productivity does not automatically imply a reduction in material consumption levels. Yet, with all other things remaining equal, an increase in material productivity bears the potential for a reduction of material consumption. Moreover, the implications of the different forms of convergence for the potential of a reduction of material consumption are presented.

Larissa Talmon-Gros

Chapter 8. Data and Descriptive Statistics

Abstract

In this chapter the data sources are presented, and a first analysis by means of descriptive statistics is conducted. The GDP data stems from the World Bank, and constant 2005 international dollars are used. The data on the service sector are also provided by the World Bank. Data on material consumption are drawn from the Global Materialflow Database. First descriptive statistics were calculated, and a descriptive, graphical analysis was conducted, focusing on the development of the standard deviation, the average growth rate, and the mean material productivity. The descriptive analysis suggests the presence of different transition phases in material productivity development.

Larissa Talmon-Gros

Chapter 9. Examination of Material Productivity Convergence

Abstract

This chapter contains the main empirical analysis of material productivity convergence. Firstly, σ-convergence is analyzed by means of the standard deviation and the coefficient of variation. Next, absolute and relative β-convergence, i.e., convergence of growth rates, are analyzed by means of cross-sectional and panel regression approaches. Moreover, in Sect. 9.3 convergence of levels of material productivity, the so-called time-series forecast convergence, is analyzed by means of panel unit root testing. This setup is also used to test for convergence club. Possible convergence clubs are determined on the basis of three approaches: The first distinction is based on an analysis of the correlation between GDP and material consumption and concomitant growth rates of material productivity. Secondly, the hypothesis that backwardness bears an advantage is used as grouping criterion, and finally the state and development of the service sector is used as a club determinant.

Larissa Talmon-Gros

Chapter 10. Discussion

Abstract

In the previous chapter material productivity convergence was analyzed. σ-convergence and β-convergence were analyzed. For β-convergence, first cross-sectional and panel regression analysis and, following that, time-series analysis were conducted. The results of these analyses are very diverse. This chapter presents a compilation and discussion.

Larissa Talmon-Gros

Chapter 11. Conclusion

Abstract

This chapter recapitulates the insights from the theoretical chapters and links them with the results from the material productivity convergence analysis. This indicates that efforts need to be intensified in order to achieve a reduction of material consumption.

Larissa Talmon-Gros

Backmatter

Titel: Development Patterns of Material Productivity
verfasst von: Larissa Talmon-Gros
Verlag: Springer International Publishing
Electronic ISBN: 978-3-319-02538-4
Print ISBN: 978-3-319-02537-7
DOI: https://doi.org/10.1007/978-3-319-02538-4