IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v65y2008i1p136-144.html
   My bibliography  Save this article

Material implication of Chile's economic growth: Combining material flow accounting (MFA) and structural decomposition analysis (SDA)

Author

Listed:
  • J., Pablo Muñoz
  • Hubacek, Klaus

Abstract

Over the last three decades, the economic integration of the Chilean economy into global markets has been taking place at a rapid pace. For example, in 1986, exports represented 29% of GDP while in 1996 they had increased to 38% of GDP. This period of time was characterized by strong economic growth with an average annual growth rate of about 10%. From a physical perspective, material requirements more than doubled from 220 to 500Â million tons of direct material inputs (DMI) during the same decade (the rate of material growth requirements was around 13% per year). The main objective of this study is to explain the changes in DMI by using a structural decomposition analysis (SDA). The changes in material flow accounting (MFA) were broken down into the effects caused by changes in resource use per unit of output (material intensity effect), changes between and within sectors (structural change effect), changes in the composition of final demand (mix effect), changes due to shifting shares of domestic final demand and export categories (category effect) and finally changes in the overall level of economic activities (level effects). The results, as a percentage of the total level of DMI used in 1986, indicate that economic growth was the major source of material changes (109%). The material intensity and category effects explained 31% and 14% of the increase, respectively. The increase in the material intensity is mainly due to a declining quality of ores in copper production. However, these components were partly compensated by the structure (-Â 14%) and mix (-Â 13%) effects. Therefore, for a Southern American country such as Chile, the main causes of these changes in material consumption have been a combination of the nature of economic growth along with an increase in export production and material intensity of production.

Suggested Citation

  • J., Pablo Muñoz & Hubacek, Klaus, 2008. "Material implication of Chile's economic growth: Combining material flow accounting (MFA) and structural decomposition analysis (SDA)," Ecological Economics, Elsevier, vol. 65(1), pages 136-144, March.
  • Handle: RePEc:eee:ecolec:v:65:y:2008:i:1:p:136-144
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(07)00337-0
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Roca, Jordi & Padilla, Emilio & Farre, Mariona & Galletto, Vittorio, 2001. "Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve hypothesis," Ecological Economics, Elsevier, vol. 39(1), pages 85-99, October.
    2. Williamson, John, 2000. "What Should the World Bank Think about the Washington Consensus?," The World Bank Research Observer, World Bank Group, vol. 15(2), pages 251-264, August.
    3. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    4. William S. Sessions, 1990. "Washington," Challenge, Taylor & Francis Journals, vol. 33(4), pages 57-59, July.
    5. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    6. Mette Wier, 1998. "Sources of Changes in Emissions from Energy: A Structural Decomposition Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 99-112.
    7. Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
    8. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    9. Arnold Tukker & Peter Eder & Sangwon Suh, 2006. "Environmental Impacts of Products:Policy Relevant Information and Data Challenges," Journal of Industrial Ecology, Yale University, vol. 10(3), pages 183-198, July.
    10. Corbo, Vittorio & de Melo, Jaime, 1987. "Lessons from the Southern Cone Policy Reforms," The World Bank Research Observer, World Bank Group, vol. 2(2), pages 111-142, July.
    11. Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
    12. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    13. Mukhopadhyay, Kakali & Forssell, Osmo, 2005. "An empirical investigation of air pollution from fossil fuel combustion and its impact on health in India during 1973-1974 to 1996-1997," Ecological Economics, Elsevier, vol. 55(2), pages 235-250, November.
    14. Stefan Bringezu & Helmut Schütz & Stephan Moll, 2003. "Rationale for and Interpretation of Economy‐Wide Materials Flow Analysis and Derived Indicators," Journal of Industrial Ecology, Yale University, vol. 7(2), pages 43-64, April.
    15. Rutger Hoekstra, 2005. "Economic Growth, Material Flows and the Environment," Books, Edward Elgar Publishing, number 3700.
    16. Stephen Casler & Adam Rose, 1998. "Carbon Dioxide Emissions in the U.S. Economy: A Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 349-363, April.
    17. Alcantara, Vicent & Duarte, Rosa, 2004. "Comparison of energy intensities in European Union countries. Results of a structural decomposition analysis," Energy Policy, Elsevier, vol. 32(2), pages 177-189, January.
    18. Muradian, Roldan & Martinez-Alier, Joan, 2001. "Trade and the environment: from a 'Southern' perspective," Ecological Economics, Elsevier, vol. 36(2), pages 281-297, February.
    19. Perez-Rincon, Mario Alejandro, 2006. "Colombian international trade from a physical perspective: Towards an ecological "Prebisch thesis"," Ecological Economics, Elsevier, vol. 59(4), pages 519-529, October.
    20. Behrens, Arno & Giljum, Stefan & Kovanda, Jan & Niza, Samuel, 2007. "The material basis of the global economy: Worldwide patterns of natural resource extraction and their implications for sustainable resource use policies," Ecological Economics, Elsevier, vol. 64(2), pages 444-453, December.
    21. Wier, Mette & Hasler, Berit, 1999. "Accounting for nitrogen in Denmark--a structural decomposition analysis," Ecological Economics, Elsevier, vol. 30(2), pages 317-331, August.
    22. Henrik Jacobsen, 2000. "Energy Demand, Structural Change and Trade: A Decomposition Analysis of the Danish Manufacturing Industry," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 319-343.
    23. Hornborg, Alf, 1998. "Towards an ecological theory of unequal exchange: articulating world system theory and ecological economics," Ecological Economics, Elsevier, vol. 25(1), pages 127-136, April.
    24. Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
    25. Pablo Muñoz Jaramillo & Jordi Roca Jusmet, 2006. "Las bases materiales del sector exportador chileno: un análisis input-output," Revista Iberoamericana de Economía Ecológica, Red Iberoamericana de Economía Ecológica, vol. 4, pages 27-40.
    26. Stefan Giljum, 2004. "Trade, Materials Flows, and Economic Development in the South: The Example of Chile," Journal of Industrial Ecology, Yale University, vol. 8(1‐2), pages 241-261, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
    2. Zhu, Zhiyun & Dong, Zhiliang & Zhang, Yanxing & Suo, Guibin & Liu, Sen, 2020. "Strategic mineral resource competition: Strategies of the dominator and nondominator," Resources Policy, Elsevier, vol. 69(C).
    3. Auci, Sabrina & Vignani, Donatella, 2020. "Mines and quarries production: A driver analysis of withdrawals in Italy," Resources Policy, Elsevier, vol. 67(C).
    4. Pothen, Frank & Schymura, Michael, 2015. "Bigger cakes with fewer ingredients? A comparison of material use of the world economy," Ecological Economics, Elsevier, vol. 109(C), pages 109-121.
    5. Ming Zhang & Yan Song, 2015. "Exploring influence factors governing the changes in China’s final energy consumption under a new framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 78(1), pages 653-668, August.
    6. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2012. "Application of the Structural Decomposition Analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1135-1145.
    7. Pothen, Frank & Schymura, Michael, 2014. "Bigger cakes with less ingredients? A comparison of material use of the world economy," ZEW Discussion Papers 14-030, ZEW - Leibniz Centre for European Economic Research.
    8. Song, Yi & Huang, Jianbai & Zhang, Yijun & Wang, Zhiping, 2019. "Drivers of metal consumption in China: An input-output structural decomposition analysis," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    9. Wang, Zhiping & Feng, Chao & Chen, Jinyu & Huang, Jianbai, 2017. "The driving forces of material use in China: An index decomposition analysis," Resources Policy, Elsevier, vol. 52(C), pages 336-348.
    10. Manfred Lenzen & Maria Cecilia Pinto de Moura & Arne Geschke & Keiichiro Kanemoto & Daniel Dean Moran, 2012. "A Cycling Method For Constructing Input--Output Table Time Series From Incomplete Data," Economic Systems Research, Taylor & Francis Journals, vol. 24(4), pages 413-432, February.
    11. Pothen, Frank, 2017. "A structural decomposition of global Raw Material Consumption," Ecological Economics, Elsevier, vol. 141(C), pages 154-165.
    12. Wu, Sanmang & Li, Shantong & Lei, Yalin & Li, Li, 2020. "Temporal changes in China's production and consumption-based CO2 emissions and the factors contributing to changes," Energy Economics, Elsevier, vol. 89(C).
    13. Muñoz, Katherine, 2019. "Análisis y descomposición sectorial de la energía solar incorporada en las exportaciones de Chile y el rol de las políticas energéticas [Analysis and sectorial decomposition of solar energy incorpo," MPRA Paper 97001, University Library of Munich, Germany, revised 30 Oct 2019.
    14. Kagawa, Shigemi & Nansai, Keisuke & Kudoh, Yuki, 2009. "Does product lifetime extension increase our income at the expense of energy consumption?," Energy Economics, Elsevier, vol. 31(2), pages 197-210.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Dietzenbacher & Jesper Stage, 2006. "Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 85-95.
    2. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    3. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    4. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
    5. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
    6. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
    7. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2013. "The role of consumption patterns, demand and technological factors on the recent evolution of CO2 emissions in a group of advanced economies," Ecological Economics, Elsevier, vol. 96(C), pages 1-13.
    8. Serrano, Monica & Roca, Jordi, 2007. "Atmospheric Pollution and Consumption Patterns in Spain: An Input-Output Approach," Climate Change Modelling and Policy Working Papers 9090, Fondazione Eni Enrico Mattei (FEEM).
    9. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    10. Muñoz, Pablo & Strohmaier, Rita & Roca, Jordi, 2011. "On the North-South trade in the Americas and its ecological asymmetries," Ecological Economics, Elsevier, vol. 70(11), pages 1981-1990, September.
    11. B. Venkatraja, 2021. "Does China exhibit any evidence of an Environmental Kuznets Curve? An ARDL bounds testing approach," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 88-110,111-.
    12. Jaeger, William K. & Kolpin, Van, 2008. "The Environmental Kuznets Curve from Multiple Perspectives," Climate Change Modelling and Policy Working Papers 36760, Fondazione Eni Enrico Mattei (FEEM).
    13. Matias Piaggio & Emilio Padilla & Carolina Roman, 2015. "The long-run relationshiop between C02 emissions and economic activity in a small open economy: Uruguay 1882-2010," Working Papers wpdea1506, Department of Applied Economics at Universitat Autonoma of Barcelona.
    14. Papathanasopoulou, Eleni & Jackson, Tim, 2008. "Fossil resource trade balances: Emerging trends for the UK," Ecological Economics, Elsevier, vol. 66(2-3), pages 492-505, June.
    15. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    16. Bettina Bahn-Walkowiak & Sören Steger, 2015. "Resource Targets in Europe and Worldwide: An Overview," Resources, MDPI, vol. 4(3), pages 1-24, August.
    17. Machado, Giovani & Schaeffer, Roberto & Worrell, Ernst, 2001. "Energy and carbon embodied in the international trade of Brazil: an input-output approach," Ecological Economics, Elsevier, vol. 39(3), pages 409-424, December.
    18. Jordi Roca & Monica Serrano, 2008. "Embodied pollution in Spanish household consumption: a disaggregate analysis," Working Papers in Economics 204, Universitat de Barcelona. Espai de Recerca en Economia.
    19. Priscilla Massa-Sánchez & Luis Quintana-Romero & Ronny Correa-Quezada & María de la Cruz del Río-Rama, 2020. "Empirical Evidence in Ecuador between Economic Growth and Environmental Deterioration," Sustainability, MDPI, vol. 12(3), pages 1-20, January.
    20. Kagawa, Shigemi & Nakamura, Shinichiro & Inamura, Hajime & Yamada, Masato, 2007. "Measuring spatial repercussion effects of regional waste management," Resources, Conservation & Recycling, Elsevier, vol. 51(1), pages 141-174.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:65:y:2008:i:1:p:136-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.