A Simple extension of Dematerialization Theory: Incorporation of Technical Progress and the Rebound Effect

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📝 Abstract

Dematerialization is the reduction in the quantity of materials needed to produce something useful over time. Dematerialization fundamentally derives from ongoing increases in technical performance but it can be counteracted by demand rebound - increases in usage because of increased value (or decreased cost) that also results from increasing technical performance. A major question then is to what extent technological performance improvement can offset and is offsetting continuously increasing economic consumption. This paper contributes to answering this question by offering some simple quantitative extensions to the theory of dematerialization. The paper then empirically examines the materials consumption trends as well as cost trends for a large set of materials and a few modern artifacts over the past decades. In each of 57 cases examined, the particular combinations of demand elasticity and technical performance rate improvement are not consistent with dematerialization. Overall, the theory extension and empirical examination indicate that there is no dematerialization occurring even for cases of information technology with rapid technical progress. Thus, a fully passive policy stance that relies on unfettered technological change is not supported by our results.

💡 Analysis

Dematerialization is the reduction in the quantity of materials needed to produce something useful over time. Dematerialization fundamentally derives from ongoing increases in technical performance but it can be counteracted by demand rebound - increases in usage because of increased value (or decreased cost) that also results from increasing technical performance. A major question then is to what extent technological performance improvement can offset and is offsetting continuously increasing economic consumption. This paper contributes to answering this question by offering some simple quantitative extensions to the theory of dematerialization. The paper then empirically examines the materials consumption trends as well as cost trends for a large set of materials and a few modern artifacts over the past decades. In each of 57 cases examined, the particular combinations of demand elasticity and technical performance rate improvement are not consistent with dematerialization. Overall, the theory extension and empirical examination indicate that there is no dematerialization occurring even for cases of information technology with rapid technical progress. Thus, a fully passive policy stance that relies on unfettered technological change is not supported by our results.

📄 Content

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  A  Simple  Extension  of  Dematerialization  Theory:  Incorporation  of     Technical  Progress  and  the  Rebound  Effect     Christopher  L.  Magee     Massachusetts  Institute  of  Technology,  Institute  for  Data,  Systems,  and  Society,  

 77  Massachusetts  Ave,  Cambridge,  Massachusetts  02139    

 

 

 

  Tessaleno  C.  Devezas   Faculty  of  Engineering,  University  of  Beira  Interior,  6200-­‐001  Covilhã,  Portugal     Abstract:     Dematerialization  is  the  reduction  in  the  quantity  of  materials  needed  to  produce   something  useful  over  time.  Dematerialization  fundamentally  derives  from  ongoing   increases  in  technical  performance  but  it  can  be  counteracted  by  demand  rebound  -­‐ increases  in  usage  because  of  increased  value  (or  decreased  cost)  that  also  results   from   increasing   technical   performance.   A   major   question   then   is   to   what   extent   technological   performance   improvement   can   offset   and   is   offsetting   continuously   increasing   economic   consumption.   This   paper   contributes   to   answering   this   question   by   offering   some   simple   quantitative   extensions   to   the   theory   of   dematerialization.  The  paper  then  empirically  examines  the  materials  consumption   trends  as  well  as  cost  trends  for  a  large  set  of  materials  and  a  few  modern  artifacts   over  the  past  decades.  In  each  of  57  cases  examined,  the  particular  combinations  of   demand  elasticity  and  technical  performance  rate  improvement  are  not  consistent   with   dematerialization.   Overall,   the   theory   extension   and   empirical   examination   indicate  that  there  is  no  dematerialization  occurring  even  for  cases  of  information   technology   with   rapid   technical   progress.   Thus,   a   fully   passive   policy   stance   that   relies  on  unfettered  technological  change  is  not  supported  by  our  results.   Keywords:  dematerialization  theory;  technical  performance  progress;  rebound  effect;   demand  elasticity;  Jevons’  Paradox.     1.  Introduction:   Attempting  to  answer  the  basic  underlying  question  and  concern  of  sustainability  – whether  humans  are  taking  more  from  the  earth  than  the  earth  can  safely  yield-­‐  is   the  main  objective  underlying  the  concept  of  dematerialization.  Malenbaum  (1978)   was  one  of  the  first  researchers  in  this  area  and  his  key  results  are  still  among  the   most  important.  He  utilized  the  concept  of  intensity  of  use  defined  as  the  ratio  of  the   amount   of   materials   (or   energy)   measured   in   bulk   mass   divided   by   GDP.   When   plotting  intensity  of  use  over  time,  he  found  “inverted  U  curves”  peaking  at  different   times  in  different  countries  (and  for  different  materials)  but  at  roughly  a  given  GDP   per   capita   for   given   materials.   Also   importantly,   the   peak   intensity   for   a   given   material   reached   by   subsequently   developing   countries   decreases   over   time   (relative  to  earlier  developing  countries).  These  two  regularities  are  the  essence  of   the  conceptual  basis  for  the  “theory  of  dematerialization”  according  to  Bernardini   2  

 

  and   Galli  (1993).   These   authors   speculate   that   the   decreasing   maximum   intensity   over  time  with  usage  of  materials/energy  per  GDP  might  be  a  positive  signal  of  a   real   dematerializing   trend,   but   they   eventually   conclude   that   the   empirical   information   at   that   time   (1993)   were   insufficient   to   draw   such   a   conclusion   and   suggest  further  examination  of  data.  

  Given   the   potential   importance   of   the   overall   sustainability   question,   it   is   not   surprising  that  there  has  been  significant  valuable  work  from  the  dematerialization  

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