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Dematerialisation of consumption: a win-win strategy?

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  • Kronenberg, Tobias

Abstract

A dematerialisation of the economy can provide a crucial contribution toward sustainable devel-opment. It can take place in the production sphere through technological change or in the con-sumption sphere through altered consumer behaviour. This paper focuses on the second case, a shift of expenditure from material consumption (e.g. manufactured products) to non-material consumption (e.g. services). Since all production requires material, an input-output model is used to account for indirect material use. The model features post-Keynesian macroeconomic founda-tions, which make it possible to study the effects of altered consumption patterns on total con-sumption, output, and income distribution. The empirical application for the case of Germany shows that a dematerialisation of consumption might be considered a win-win strategy from an ecological and economic viewpoint. However, its effects on the distribution of income and inter-national trade may be problematic.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25704.

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Date of creation: 01 Oct 2010
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Handle: RePEc:pra:mprapa:25704

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Keywords: Sustainable consumption; input-output model; social sustainability; income distribution;

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Cited by:
  1. Armon Rezai & Lance Taylor & Reinhard Mechler, 2012. "Ecological Macroeconomics: An application to climate change," SRE-Disc, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business sre-disc-2012_06, Institute for the Environment and Regional Development, Department of Socioeconomics, Vienna University of Economics and Business.

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