Structural Decomposition Analysis of Raw Material Consumption

The aim of this article is to quantify the drivers for the changes in raw material consumption (domestic material consumption expressed in the form of all materials extracted and used in the production phase) in terms of technology, which refers to the concept of sustainable production; the product structure of final demand, which refers to the concept of sustainable consumption; and the volume of final demand, which is related to economic growth. We also aim to determine to what extent the technological development and a shift in product structure of the final demand compensate for the growth in final consumption volume. Therefore, we apply structural decomposition analysis (SDA) to the change in raw material consumption (RMC) of the Czech Republic between 2000 and 2007. To present the study in a broader context, we also show other material flow indicators for the Czech Republic for 2000 and 2007. Our findings of SDA show that final demand structure has a very limited effect on the change in material flows. The rapid change in final demand volume was not compensated for crude oil, metal ores, construction materials, food crops, and timber. For the material category of non‐iron metal ores, even the change in technology contributes to an increase in material flows. The largest relative increases are reported for non‐iron metal ores (38%) and construction materials (30%). The main changes in material flows related to the Czech Republic are driven by exports and enabled by imports, the main source of these increased material flows. This emphasizes the increasing role of international trade.     

The Biophysical Performance of Argentina (1970–2009)

The biophysical features of the Argentinean economy are examined using a social metabolism approach. A material flow analysis (MFA) for this economy was conducted for the period 1970–2009. Results show that Argentina follows a resource‐intensive and export‐oriented development model with a persistent physical trade deficit. Also, Argentina's terms of trade (the average weight in tonnes of imports that can be purchased through the sale of 1 tonne of exports) show a declining trend in the period of study. Argentina's economy shows a pattern typical of countries whose economies are based primarily on exports. Comparisons between Argentina's metabolic profile and the metabolic profile of other countries in Latin America and of Australia and Spain show that the Argentinean economy presents the same pattern as other Latin American exporting economies, and its terms of trade are opposite to those of industrialized economies.     

Material Flow Accounts and Driving Factors of Economic Growth in the Philippines

This study looks into material flow trends in the Philippines from 1985 to 2010 by utilizing the methodology of economy‐wide material flow analysis. Using domestic data sources, this study presents disaggregated annual material flow trends in terms of four major material categories, namely: biomass; fossil energy carriers; ores and industrial minerals; and construction minerals. The results describe in detail the growth of material flows in a high‐density country at the onset of its development and reveal the shift of material consumption from dominance of renewable materials in 1985 to nonrenewable materials in 2010. IPAT analysis shows that the increase in material consumption was driven by population growth from 1985 to 1998 and by growth in affluence from 1999 to 2010. However, high inequalities amidst the growing economy suggest that a small group of wealthy people have influenced the acceleration of material consumption in the Philippines. The results of this research are intended to provide a thorough analysis of the processes occurring in Philippine economic growth in order to assist in tackling implications for the important issue of sustainable resource management.     

Consumption‐based Material Flow Accounting

In 2007, imports accounted for approximately 34% of the material input (domestic extraction and imports) into the Austrian economy and almost 60% of the GDP stemmed from exports. Upstream material inputs into the production of traded goods, however, are not yet included in the standard framework of material flow accounting (MFA). We have reviewed different approaches accounting for these upstream material inputs, or raw material equivalents (RME), positioning them in a wider debate about consumption‐based perspectives in environmental accounting. For the period 1995–2007, we calculated annual RME of Austria's trade and consumption applying a hybrid approach. For exports and competitive imports, we used an environmentally extended input‐output model of the Austrian economy, based on annual supply and use tables and MFA data. For noncompetitive imports, coefficients for upstream material inputs were extracted from life cycle inventories. The RME of Austria's imports and exports were approximately three times larger than the trade flows themselves. In 2007, Austria's raw material consumption was 30 million tonnes or 15% higher than its domestic material consumption. We discuss the material composition of these flows and their temporal dynamics. Our results demonstrate the need for a consumption‐based perspective in MFA to provide robust indicators for dematerialization and resource efficiency analysis of open economies.     

The Physical Economy of the United States of America

The United States is not only the world's largest economy, but it is also one of the world's largest consumers of natural resources. The country, which is inhabited by some 5% of the world's population, uses roughly one‐fifth of the global primary energy supply and 15% of all extracted materials. This article explores long‐term trends and patterns of material use in the United States. Based on a material flow account (MFA) that is fully consistent with current standards of economy‐wide MFAs and covers domestic extraction, imports, and exports of materials for a 135‐year period, we investigated the evolution of the U.S. industrial metabolism. This process was characterized by an 18‐fold increase in material consumption, a multiplication of material use per capita, and a shift from renewable biomass toward mineral and fossil resources. In spite of considerable improvements in material intensity, no dematerialization has happened so far; in contrast to other high‐income countries, material use has not stabilized since the 1970s, but has continued to grow. This article compares patterns and trends of material use in the United States with those in Japan and the United Kingdom and discusses the factors underlying the disproportionately high level of U.S. per capita resource consumption.     

Chronological change of resource metabolism and decarbonization patterns in Pakistan: Perspectives from a typical developing country

With economic growth in many developing countries, not all are making similar progress with regard to material and environmental efficiencies. This study examines material use and CO₂ emission patterns and intensities from 1971 to 2015 in a typical developing country, Pakistan, and investigates national‐level and multi‐country‐level efficiency improvements using data envelopment analysis. The results are used to derive key policy insights for a sustainable economic transition with higher resource and carbon efficiencies. Results show that material intensity has reduced by 39.1% while CO₂ intensity has risen by 21.5% in the country. Pakistan, when compared with its top 10 export countries, was relatively more material and CO₂ intensive. National‐level efficiency was found to be low in most of the periods due to material/energy intensive agriculture and industries, low value‐added exports, etc. Insights from the national‐level efficiency analysis indicate that surging CO₂ intensities have started to decline since 2010 and the economy has greatly stabilized. Multi‐country analysis revealed that the efficiency gap between Pakistan and its developed export countries (such as the United Kingdom and France) has widened during the study period. Insights from the multi‐country analysis suggest that the economic growth and industrialization improves material and environmental efficiencies to some extent, yet these improvements are not equally distributed among all countries. As a way forward, integrated policies on sustainable resource consumption, carbon mitigation, and economic growth are necessary for accruing higher benefits from rising global trade and resource connectedness.     

Material Flows and Economic Growth in Developing China

The concept of sustainable development concerns not only the natural environment but also human societies and economies. The method of economy‐wide materials flow accounting and analysis (EW‐MFA) is internationally recognized as a valuable tool for studying the physical dimensions of economies. EW‐MFA has been carried out in many industrialized countries, but very little work has been done for developing China; this article can be regarded as one of the first attempts to study China's economy in terms of materials flows. In this article we have compiled materials flow accounts for China during the time series 1990 to 2002 and derived indicators associated with international comparison. Results show that the annual material consumption of China's economy continuously increased except for a slump around 1998, whereas the material efficiency exhibited a three‐phase trend reflecting different macropolicies of the Eighth, Ninth, and Tenth Five‐Year Plans implemented by the central government. Based on this experience with EW‐MFA for China, suggestions for methodology development and further research are given for improving EW‐MFA as a more effective tool for environmental management.     

Materials Flows in Finland: Resource Use in a Small Open Economy

In this article, the development of natural resource use in Finland during the period 1970-1997 is analyzed. In measuring natural resource use, the concept of total material requirement (TMR) is applied. The focus is on the linkages of resource use with the changing structures of the economy. The linkages are studied using input-output analysis.
Using input-output analysis, the TMR is further partitioned into resources used for domestic final use or for total material consumption (TMC) and total material requirement of exports (TME). The analysis shows that TMR has the problem of double accounting: if the TMRs of all countries of the world are summed, then international trade would be accounted for twice in the world TMR, once in imports and once in exports of each country.
The TMC concept does not have this kind of defect. In a small, open economy like that of Finland, where the share of foreign trade is large, the difference between the TMR and the TMC is also large. We show that by 1997, the TME comprised about half of Finland's TMR and that the growth of the TMR over the study period has been due to the TME only as the TMC has stayed rather constant.     

Uncertainties of Domestic Road Freight Statistics: Insights for Regional Material Flow Studies

Freight statistics are at the core of many studies in the field of industrial ecology because they depict the physical interdependencies of territories and allow links to be made worldwide between production and consumption. Recent studies have focused increasingly on subnational scales, often relying on domestic freight data. In this perspective, this article analyses the uncertainties of the French domestic road freight survey, road being by far the most common mode of transport in the country. Based on a statistical analysis of the survey, we propose a model to estimate the uncertainty of any given domestic road transport flow. We also assess uncertainty reduction when averaging the flows over several years, and obtain for instance a 30% reduction for a three‐year average. We then study the impact of the uncertainties on regional material flow studies such as the economy‐wide material flow analysis of the Bourgogne region. Overall the case studies advocate for a systematic assessment of freight uncertainties, as neither the disaggregation level nor the quantities traded are good enough predictors. This justifies the need for an easy‐to‐implement estimation model. Finally, basic comparison with the German and Swedish surveys tends to indicate that the main conclusions presented in this article are likely to be valid in other European countries.     

The Raw Material Equivalents of International Trade

This article aims at estimating the raw material equivalents (RMEs)—the upstream used material flows required along the production chain—of imports and exports for some Latin American countries: Brazil, Chile, Colombia, Ecuador, and Mexico. Furthermore, the United States is included in the analysis as a reference for a high‐income economy. The RME concept and the empirical evidence are articulated by use of an input?output methodology. Results are set out for the year 2003 for each of the countries and in time series for the years 1977, 1986, 1996, and 2003 in the case of Chile. The findings show not only the physical dimensions behind direct material traded but also how the previous exporter (importer) position of a country (based on standard material flow analysis indicators) deteriorates, alleviates, or changes. Implications for material consumption indicators, such as direct material consumption (DMC) and raw material consumption (RMC), are also drawn. The results suggest basing the discussion of material flows on a broader set of indicators to obtain a more comprehensive picture of the implications of international trade and its impacts on the environment.     

Cape Town’s Metabolism: Insights from a Material Flow Analysis

This work aims to contribute to the number of urban metabolism case studies using a standardized methodology. An economy‐wide material flow analysis (EW‐MFA) was conducted on the Metropolitan Municipality of Cape Town (South Africa) for the year 2013, using the Eurostat framework. The study provides insights into the city's metabolism through various indicators including direct material input (DMI), domestic material consumption (DMC), and direct material output (DMO), among others. In order to report on the uncertainty of the data, a set of data quality indicators originating from the life cycle assessment literature was used. The results show that domestic extraction involves significant quantities of non‐metallic minerals, and that imports consist primarily of biomass and fossil fuels. The role of the city as a regional hub is also made clear from this study and illustrated by large quantities of food and other materials flowing through the city on their way to or from international markets. The results are compared with indicators from other cities and with previous metabolism work done on Cape Town. To fully grasp the impacts of the city's metabolism, more work needs to be done. It will be necessary to understand the upstream impact of local consumption, and consumption patterns should be differentiated on a more nuanced level (taking into account large differences between household income levels as well as separating the metabolism of industry and commerce from residential consumption).     

Economic Integration in Tanzania (1970–2011): A Biophysical Assessment

This article assesses the impact of economic integration on Tanzania's sociometabolic profile for the years 1970–2011, which witnessed an opening and further integration of Tanzania's economy through increased trade and foreign investment, through a time‐series economy‐wide material flows analysis (EW‐MFA). The EW‐MFA results show that contrary to the trade patterns of many developing countries, increased economic integration has resulted in Tanzania becoming a net importer of resources across all material categories when measured by the physical trade balance indicator. Additionally, the article discusses the conceptual and empirical challenges of measuring ecologically unequal exchange with EW‐MFAs for developing countries whose export profiles are dominated by lightweight, high‐value precious stones and metals. It also assesses the degree to which the Tanzanian economy has undergone dematerialization over the past 40 years of economic integration.     

A Comprehensive Material Flow Account for Lao PDR to Inform Environmental and Sustainability Policy

Modern environmental and sustainability policy that acknowledges the linkages between socioeconomic processes and environmental pressures and impacts, and designs policies to decouple economic activity from environmental pressures and impacts, requires a sophisticated and comprehensive knowledge base. The concept of industrial metabolism provides a sound conceptual base, and material flow accounting—including primary material inputs and outflows of waste and emissions—provides a well‐accepted operationalization. Studies presenting a comprehensive material flow account for a national economy are rare, especially for developing countries. Countries such as Lao People's Democratic Republic (Lao PDR or Laos) face dual objectives of improving the material standard of living of their people while managing natural resources sustainably and mitigating adverse environmental impacts from growing resource throughput. Our research fills a knowledge gap, presents a comprehensive account of material inputs and outflows of waste and emissions for the Lao PDR national economy, and applies the accounting approach for a low‐income economy in Asia. We present a material balance for the years 2000 and 2015. For this research, we used data from Lao PDR national statistics and the accounting guidelines of the European Statistical Office (Eurostat), which pioneered the use of material flow data as part of its official statistical reporting. We demonstrate the feasibility of the accounting approach and discuss the robustness of results using uncertainty analysis conducted with statistical approaches commonly used in the field of industrial ecology, including Gauss's law of error propagation and Monte Carlo simulation. We find that the fast‐changing scale and composition of Lao PDR material flows, waste, and emissions presents challenges to the existing policy capacity and will require investment into governance of changed patterns of material use, waste disposal, and emissions. We consider the data analysis sufficiently robust to inform such a change in policy direction.     

Rationale for and Interpretation of Economy-Wide Materials Flow Analysis and Derived Indicators

Economy-wide material flow analysis (MFA) and derived indicators have been developed to monitor and assess the metabolic performance of economies, that is, with respect to the internal economic flows and the exchange of materials with the environment and with other economies. Indicators such as direct material input (DMI) and direct material consumption (DMC) measure material use related to either production or consumption. Domestic hidden flows (HF) account for unused domestic extraction, and foreign HF represent the upstream primary resource requirements of the imports. DMI and domestic and foreign HF account for the total material requirement (TMR) of an economy. Subtracting the exports and their HF provides the total material consumption (TMC).
DMI and TMR are used to measure the (de-) coupling of resource use and economic growth, providing the basis for resource efficiency indicators. Accounting for TMR allows detection of shifts from domestic to foreign resource requirements. Net addition to stock (NAS) measures the physical growth of an economy. It indicates the distance from flow equilibrium of inputs and outputs that may be regarded as a necessary condition of a sustainable mature metabolism.
We discuss the extent to which MFA-based indicators can also be used to assess the environmental performance. For that purpose we consider different impacts of material flows, and different scales and perspectives of the analysis, and distinguish between turnover-based indicators of generic environmental pressure and impact-based indicators of specific environmental pressure. Indicators such as TMR and TMC are regarded as generic pressure indicators that may not be used to indicate specific environmental impacts. The TMR of industrial countries is discussed with respect to the question of whether volume and composition may be regarded as unsustainable.     

Towards a Circular Economy in Australian Agri‐food Industry: An Application of Input‐Output Oriented Approaches for Analyzing Resource Efficiency and Competitiveness Potential

The food industry in Australia (agriculture and manufacturing) plays a fundamental role in contributing to socioeconomic sectors nationally. However, alongside the benefits, the industry also produces environmental burdens associated with the production of food. Sectorally, agriculture is the largest consumer of water. Additionally, land degradation, greenhouse gas emissions, energy consumption, and waste generation are considered the main environmental impacts caused by the industry. The research project aims to evaluate the eco‐efficiency performance of various subsectors in the Australian agri‐food systems through the use of input‐output–oriented approaches of data envelopment analysis and material flow analysis. This helps in establishing environmental and economic indicators for the industry. The results have shown inefficiencies during the life cycle of food production in Australia. Following the principles of industrial ecology, the study recommends the implementation of sustainable processes to increase efficiency, diminish undesirable outputs, and decrease the use of nonrenewable inputs within the production cycle. Broadly, the research outcomes are useful to inform decision makers about the advantages of moving from a traditional linear system to a circular production system, where a sustainable and efficient circular economy could be created in the Australian food industry.     

Materials Flow Accounting in Sweden Material Use for National Consumption and for Export

This article presents Swedish economy‐wide material flow accounts for the period 1987‐1998. It also shows possibilities for enhancing the international comparability of aggregated data on material use, by distinguishing between materials used for consumption and export purposes. The direct material input (DMI) is used as an aggregate measure to estimate the amounts of natural resources (except water and air) that are taken from nature into the economy within a year, including imports to and production within the region in question. The division of materials used for consumption and export purposes avoids double counting trade flows when DMI is applied to a group of countries. The annual DMI in Sweden for 1997‐1998, including production and imports, amounts to 24 to 27 metric tons per capita (t/c). The fossil fuel input varies only slightly over the period, from 3.2 t/c in 1991 to 3.6 t/c in 1996, a level deemed unsustainable by the Swedish Environmental Protection Agency. The input of renewable raw materials varies between 8 and 9 t/c. Ores and minerals vary between 11 and 15 t/c. The DMI puts Sweden above estimates made for Germany, the United States, and Japan and in the same range as the Netherlands. The differences in these values can mainly be explained by the relative importance of exports as compared to the size of the economy and by the variation in system boundaries for the data on natural resources. The system boundaries and data sources for natural resources need to be further defined to make the measures fully comparable. Around 5 t/c is exported, whereas the rest, around 20 t/c, is national consumption. The aggregate direct material consumption (DMC), which is the DMI minus exports, communicates the magnitude of resource use. Comparisons of the input with solid waste statistics indicate that quantity of waste (excluding mining waste) in Sweden is equal to about 10% relative of the total resource use. Material collected for recycling by the waste management system is equal to about 5% of the amount of virgin resources brought into society each year.     

Materials Flow Analysis of the Italian Economy

This article analyzes the mass of the materials that flowed through the Italian economy during 1994 and compares the results with a similar analysis of Germany, Japan, the Netherlands, and the United States published by a collaboration headed by the World Resources Institute. In order to perform this comparison, we have evaluated the mass of the materials produced within the country and the mass of the imported materials and commodities. For the domestic production, imports and exports, we have also evaluated the mass of the materials that accompany—as "hidden flows"—each physical flow.
Our analysis indicates that, in 1994, Italy experienced total material requirements (TMR) of 1,609 million metric tons (Mt), of which 727 Mt was used as direct material input (DMI). A comparison with other developed countries shows that the TMR and DMI flows, measured in mass per person and in mass per GDP unit, are, in Italy, lower than the corresponding figures evaluated for the United States, Germany, and the Netherlands. An interpretation of these results is presented. The analysis may give information useful for environmental considerations, although the limits of such an approach are made clear.     

Materials Metabolism Analysis of China's Highway Traffic System (HTS) for Promoting Circular Economy

With the rapid growth of highway mileage and vehicles, the Chinese highway traffic system (HTS) has become one of the great resource consumers. This article attempts to evaluate the material metabolism of China's HTS during 2001–2005 using the approach of material flow analysis (MFA) and to explore possible measures to promote circular economy throughout HTS. We measured a set of indicators to illustrate the whole material metabolism of China's HTS. The results indicated that the direct material input (DMI) of China's HTS increased from 1181.26 million tonnes (Mt) in 2001 to 1,874.57 Mt in 2005, and about 80% of DMI was accumulated in the system as infrastructure and vehicles. The domestic processed output (DPO) increased by 59.0% from 2001 to 2005. Carbon dioxide and solid waste accounted for 80.5% and 10.4% of DPO, respectively. The increase of resource consumption and pollutant emissions kept pace with the growth of transportation turnover. All these suggest that China's HTS still followed an extensive linear developing pattern with large resource consumption and heavy pollution emissions during the study period, which brought great challenges to the resources and the environment. Therefore, it's high time for China to implement a circular economy throughout the HTS by instituting resource and energy savings, by reducing emissions in the field of infrastructure construction and maintenance, by reducing vehicles’ energy and materials consumption, and by recycling waste materials.     

基于MFA和DEA的区域经济环境效率评价-以辽宁省为例

对经济与环境效率的科学评价是实现区域可持续发展的前提。运用物质流分析将辽宁省经济系统中数据进行物质化处理,再利用改进的数据包络分析模型对环境和经济效率进行综合评价。结果表明:辽宁省物资消费不主要依赖于进口,向其它地区物质输出量大;环境效率评价的综合效率主要受规模因素影响而显著低于纯技术效率,而整体经济的综合效率却主要受纯技术效率影响而下降。第二产业比重依然偏大的产业结构特征是导致上述结果的主因。进一步改造提升传统产业,发展战略性新兴产业,提高第三产业发展水平,扩大环保规模,促进居民生活质量水平全面提升,将是辽宁省以及与之相似的资源依赖型区域可持续发展的方向。     

Labor Embodied in Trade

Global production chains carry environmental and socioeconomic impacts embodied in each traded good and service. Even though labor and energy productivities tend to be higher for domestic production in high‐income countries than those in emerging economies, this difference is significantly reduced for consumption, when including imported products to satisfy national demand. The analysis of socioeconomic and environmental aspects embodied in consumption can shed a light on the real level of productivity of an economy, as well as the effects of rising imports and offshoring. This research introduces a consumption‐based metric for productivity, in which we evaluate the loss of productivity of developed nations resulting from imports from less‐developed economies and offshoring of labor‐intensive production. We measure the labor, energy, and greenhouse gas emissions footprints in the European Union's trade with the rest of the world through a multiregional input‐output model. We confirm that the labor footprint of European imports is significantly higher than the one of exports, mainly from low‐skilled, labor‐intensive primary sectors. A high share of labor embodied in exports is commonly associated with low energy productivities in domestic industries. Hence, this reconfirms that the offshoring of production to cheaper and low‐skilled, labor‐abundant countries offsets, or even reverts, energy efficiency gains and climate‐change mitigation actions in developed countries.