IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v71y2021ics030142072100012x.html
   My bibliography  Save this article

Direct and indirect effects of heterogeneous technical change on metal consumption intensity: Evidence from G7 and BRICS countries

Author

Listed:
  • Song, Yi
  • Cheng, Jinhua
  • Zhang, Yijun
  • Dai, Tao
  • Huang, Jianbai

Abstract

To improve metal utilization efficiency, the effects of technical change cannot be ignored. However, existing researches often ignored the heterogeneous effects of different types of technical change on metal consumption intensity. Taking the G7 and BRICS countries as samples, this article first identifies the direct effects of heterogeneous technical change on the consumption intensity of iron ores, copper and aluminum from magnitude of technical change (MTC) and biased technical change (BTC). Then, industrial structure and metal consumption are introduced as mediating variables to identify the indirect effects of heterogeneous technical change. The results show the following: (1) there is a lag in the effect of TC on reducing metal consumption intensity and its effect on iron ore consumption intensity is the most significant. Reduction of iron ore consumption intensity mainly depends on MTC, whereas the reduction of copper and aluminum consumption intensity mainly depends on BTC. (2) The effects of heterogeneous technical change on metal consumption intensity in BRICS countries were consistent with the overall samples, while the effects of BTC on the intensity of copper and aluminum are positive in G7 countries. (3) Three types of technical change can reduce metal consumption intensity through the rationalization and advancement of industrial structure, and their effects are heterogeneous for different metals. (4) TC and BTC cannot reduce metal consumption intensity through reducing metal consumption due to a rebound effect, whereas MTC can significantly reduce iron ore consumption intensity by reducing iron ore consumption.

Suggested Citation

  • Song, Yi & Cheng, Jinhua & Zhang, Yijun & Dai, Tao & Huang, Jianbai, 2021. "Direct and indirect effects of heterogeneous technical change on metal consumption intensity: Evidence from G7 and BRICS countries," Resources Policy, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:jrpoli:v:71:y:2021:i:c:s030142072100012x
    DOI: 10.1016/j.resourpol.2021.101995
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142072100012X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2021.101995?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Saunders, Harry D., 2014. "Toward a neoclassical theory of sustainable consumption: Eight golden age propositions," Ecological Economics, Elsevier, vol. 105(C), pages 220-232.
    2. Crompton, Paul, 2000. "Future trends in Japanese steel consumption," Resources Policy, Elsevier, vol. 26(2), pages 103-114, June.
    3. Tomas Baležentis, 2014. "Total factor productivity in the Lithuanian family farms after accession to the EU: application of the bias-corrected Malmquist indices," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 731-746, November.
    4. Feng, Chao & Huang, Jian-Bai & Wang, Miao, 2019. "The sustainability of China’s metal industries: features, challenges and future focuses," Resources Policy, Elsevier, vol. 60(C), pages 215-224.
    5. Altenburg, Tilman & Schmitz, Hubert & Stamm, Andreas, 2008. "Breakthrough China's and India's Transition from Production to Innovation," World Development, Elsevier, vol. 36(2), pages 325-344, February.
    6. Sylvia Gierlinger & Fridolin Krausmann, 2012. "The Physical Economy of the United States of America," Journal of Industrial Ecology, Yale University, vol. 16(3), pages 365-377, June.
    7. Dolata, Ulrich, 2009. "Technological innovations and sectoral change: Transformative capacity, adaptability, patterns of change: An analytical framework," Research Policy, Elsevier, vol. 38(6), pages 1066-1076, July.
    8. Stuermer, Martin, 2017. "Industrialization and the demand for mineral commodities," Journal of International Money and Finance, Elsevier, vol. 76(C), pages 16-27.
    9. Maddala, G S & Wu, Shaowen, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-652, Special I.
    10. Cristiano Antonelli & Francesco Quatraro, 2010. "The effects of biased technological change on total factor productivity: empirical evidence from a sample of OECD countries," The Journal of Technology Transfer, Springer, vol. 35(4), pages 361-383, August.
    11. Spatari, S. & Bertram, M. & Gordon, Robert B. & Henderson, K. & Graedel, T.E., 2005. "Twentieth century copper stocks and flows in North America: A dynamic analysis," Ecological Economics, Elsevier, vol. 54(1), pages 37-51, July.
    12. L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
    13. Pfaff, Matthias & Sartorius, Christian, 2015. "Economy-wide rebound effects for non-energetic raw materials," Ecological Economics, Elsevier, vol. 118(C), pages 132-139.
    14. Alessandro Caiani, 2017. "Innovation Dynamics and Industry Structure Under Different Technological Spaces," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 307-341, November.
    15. Gunnar Prause & Gunnar Prause & Sina Atari, 2017. "On sustainable production networks for Industry 4.0," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(4), pages 421-431, June.
    16. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    17. Jebali, Eya & Essid, Hédi & Khraief, Naceur, 2017. "The analysis of energy efficiency of the Mediterranean countries: A two-stage double bootstrap DEA approach," Energy, Elsevier, vol. 134(C), pages 991-1000.
    18. Ignacio Guzman, Juan & Nishiyama, Takashi & Tilton, John E., 2005. "Trends in the intensity of copper use in Japan since 1960," Resources Policy, Elsevier, vol. 30(1), pages 21-27, March.
    19. Elshkaki, Ayman & Shen, Lei, 2019. "Energy-material nexus: The impacts of national and international energy scenarios on critical metals use in China up to 2050 and their global implications," Energy, Elsevier, vol. 180(C), pages 903-917.
    20. Alam, Md. Samsul & Atif, Muhammad & Chien-Chi, Chu & Soytaş, Uğur, 2019. "Does corporate R&D investment affect firm environmental performance? Evidence from G-6 countries," Energy Economics, Elsevier, vol. 78(C), pages 401-411.
    21. Jaunky, Vishal Chandr, 2012. "Is there a material Kuznets curve for aluminium? evidence from rich countries," Resources Policy, Elsevier, vol. 37(3), pages 296-307.
    22. Krausmann, Fridolin & Gingrich, Simone & Eisenmenger, Nina & Erb, Karl-Heinz & Haberl, Helmut & Fischer-Kowalski, Marina, 2009. "Growth in global materials use, GDP and population during the 20th century," Ecological Economics, Elsevier, vol. 68(10), pages 2696-2705, August.
    23. Gunnar Prause & Sina Atari, 2017. "On sustainable production networks for Industry 4.0," Post-Print hal-01860909, HAL.
    24. Thomas Wiedmann & Heinz Schandl & Daniel Moran, 2015. "The footprint of using metals: new metrics of consumption and productivity," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(3), pages 369-388, July.
    25. Antonelli, Cristiano, 2006. "Localized technological change and factor markets: constraints and inducements to innovation," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 224-247, June.
    26. Miguel A. León-Ledesma & Peter McAdam & Alpo Willman, 2010. "Identifying the Elasticity of Substitution with Biased Technical Change," American Economic Review, American Economic Association, vol. 100(4), pages 1330-1357, September.
    27. Crompton, Paul, 2015. "Explaining variation in steel consumption in the OECD," Resources Policy, Elsevier, vol. 45(C), pages 239-246.
    28. Cheng, Zhonghua & Li, Lianshui & Liu, Jun, 2018. "Industrial structure, technical progress and carbon intensity in China's provinces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2935-2946.
    29. Song, Yi & Huang, Jian-Bai & Feng, Chao, 2018. "Decomposition of energy-related CO2 emissions in China's iron and steel industry: A comprehensive decomposition framework," Resources Policy, Elsevier, vol. 59(C), pages 103-116.
    30. Feng, Chao & Huang, Jian-Bai & Wang, Miao, 2018. "The driving forces and potential mitigation of energy-related CO2 emissions in China's metal industry," Resources Policy, Elsevier, vol. 59(C), pages 487-494.
    31. Tugcu, Can Tansel & Ozturk, Ilhan & Aslan, Alper, 2012. "Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries," Energy Economics, Elsevier, vol. 34(6), pages 1942-1950.
    32. 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.
    33. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    34. Claudia R. Binder & T. E. Graedel & Barbara Reck, 2006. "Explanatory Variables for per Capita Stocks and Flows of Copper and Zinc," Journal of Industrial Ecology, Yale University, vol. 10(1‐2), pages 111-132, January.
    35. Steinberger, Julia K. & Krausmann, Fridolin & Eisenmenger, Nina, 2010. "Global patterns of materials use: A socioeconomic and geophysical analysis," Ecological Economics, Elsevier, vol. 69(5), pages 1148-1158, March.
    36. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    37. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
    38. Tamaki, Tetsuya & Shin, Kong Joo & Nakamura, Hiroki & Fujii, Hidemichi & Managi, Shunsuke, 2018. "Shadow prices and production inefficiency of mineral resources," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 111-121.
    39. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    40. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    41. Korhonen, Janne M., 2018. "Overcoming Scarcities Through Innovation: What Do Technologists Do When Faced With Constraints?," Ecological Economics, Elsevier, vol. 145(C), pages 115-125.
    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. Zhong, Mei-Rui & Xiao, Shun-Li & Zou, Han & Zhang, Yi-Jun & Song, Yi, 2021. "The effects of technical change on carbon intensity in China’s non-ferrous metal industry," Resources Policy, Elsevier, vol. 73(C).
    2. Song, Yi & Ruan, Shengzhe & Cheng, Jinhua & Zhang, Yijun, 2023. "Technological change in critical metallic mineral sub-sectors and its impacts on mineral supply: Evidence from China," Resources Policy, Elsevier, vol. 85(PA).
    3. Song, Yi & Zhang, Zhouyi & Zhang, Yijun & Cheng, Jinhua, 2022. "Technological innovation and supply of critical metals: A perspective of industrial chains," Resources Policy, Elsevier, vol. 79(C).

    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. 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.
    2. Xuejiao Ma & Qichuan Jiang, 2019. "How to Balance the Trade-off between Economic Development and Climate Change?," Sustainability, MDPI, vol. 11(6), pages 1-30, March.
    3. Bertinelli, Luisito & Cardi, Olivier & Restout, Romain, 2022. "Labor market effects of technology shocks biased toward the traded sector," Journal of International Economics, Elsevier, vol. 138(C).
    4. Dorothée Charlier & Florian Fizaine, 2020. "Does Becoming Richer Lead to a Reduction in Natural Resource Consumption? An Empirical Refutation of the Kuznets Material Curve," Working Papers 2020.05, FAERE - French Association of Environmental and Resource Economists.
    5. Ozcan, Burcu & Temiz, Mehmet & Gültekin Tarla, Esma, 2023. "The resource curse phenomenon in the case of precious metals: A panel evidence from top 19 exporting countries," Resources Policy, Elsevier, vol. 81(C).
    6. Gao, Da & Li, Ge & Yu, Jiyu, 2022. "Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities," Energy, Elsevier, vol. 247(C).
    7. Ruijing Zheng & Yu Cheng & Haimeng Liu & Wei Chen & Xiaodong Chen & Yaping Wang, 2022. "The Spatiotemporal Distribution and Drivers of Urban Carbon Emission Efficiency: The Role of Technological Innovation," IJERPH, MDPI, vol. 19(15), pages 1-22, July.
    8. Apergis, Nicholas & El-Montasser, Ghassen & Sekyere, Emmanuel & Ajmi, Ahdi N. & Gupta, Rangan, 2014. "Dutch disease effect of oil rents on agriculture value added in Middle East and North African (MENA) countries," Energy Economics, Elsevier, vol. 45(C), pages 485-490.
    9. Chen, Ming & Chen, Junying, 2023. "Natural resources extraction in emerging economies: Does it promote sustainable development or crowd-out real sector?," Resources Policy, Elsevier, vol. 83(C).
    10. Cardi, Olivier & Restout, Romain, 2023. "Sectoral fiscal multipliers and technology in open economy," Journal of International Economics, Elsevier, vol. 144(C).
    11. Fernandez, Viviana, 2018. "Mineral commodity consumption and intensity of use re-assessed," International Review of Financial Analysis, Elsevier, vol. 59(C), pages 1-18.
    12. Ifeoluwa Adeola Ologunde & Forget Mingiri Kapingura & Kin Sibanda, 2020. "Sustainable Development and Crude Oil Revenue: A Case of Selected Crude Oil-Producing African Countries," IJERPH, MDPI, vol. 17(18), pages 1-30, September.
    13. Magali Dauvin, 2013. "Energy prices and the real exchange rate of commodity-exporting countries," EconomiX Working Papers 2013-33, University of Paris Nanterre, EconomiX.
    14. Dizaji, S.F., 2019. "The potential impact of oil sanctions on military spending and democracy in the Middle East," ISS Working Papers - General Series 644, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    15. José Fuinhas & António Marques & Alcino Couto, 2015. "Oil rents and economic growth in oil producing countries: evidence from a macro panel," Economic Change and Restructuring, Springer, vol. 48(3), pages 257-279, November.
    16. He, Rui-fang & Zhong, Mei-rui & Huang, Jian-bai, 2021. "The dynamic effects of renewable-energy and fossil-fuel technological progress on metal consumption in the electric power industry," Resources Policy, Elsevier, vol. 71(C).
    17. Taguchi, Hiroyuki & Ganbayar, Javkhlan, 2022. "An econometric study on the classification and effectiveness of natural resource funds," MPRA Paper 114392, University Library of Munich, Germany.
    18. Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
    19. Hiroyuki Taguchi & Javkhlan Ganbayar, 2022. "Natural Resource Funds: Their Objectives and Effectiveness," Sustainability, MDPI, vol. 14(17), pages 1-20, September.
    20. Tanja Fatur Šikiæ, 2020. "The impact of energy consumption on economic growth in developed and post-transition countries of European Union," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 475-497.

    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:jrpoli:v:71:y:2021:i:c:s030142072100012x. 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/inca/30467 .

    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.