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Positive employment effects of increasing material efficiency

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  • Sartorius, Christian

Abstract

As raw and processed materials constitute a major share of the cost of inputs to industrial production in all developed countries and since the raw material crisis in 2009 revealed the criticality of the raw material supply worldwide, the increasingly efficient use of material resources has become an important point on the political agenda. One way to promote this increase is funding of research in efficiency-increasing technology innovations. Data describing the physical and economic effects of sixteen such innovations are used to model on the basis of input-output analysis the employment effect of these technologies once their full application potential in Germany would be exploited. It turns out that the employment effect is positive and its strong robustness is based on the combination of three promoting factors, each of which alone increases the likelihood of increasing employment. These factors refer to the profitability of efficiency-increasing technologies and to the import of foreign value added and the change in labour productivity characterizing many instances of material efficiency increase.

Suggested Citation

  • Sartorius, Christian, 2015. "Positive employment effects of increasing material efficiency," Working Papers "Sustainability and Innovation" S14/2015, Fraunhofer Institute for Systems and Innovation Research (ISI).
    • Handle: RePEc:zbw:fisisi:s142015
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    1. Bernd Meyer & Mark Meyer & Martin Distelkamp, 2012. "Modeling green growth and resource efficiency: new results," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 24(2), pages 145-154, June.
    2. Meyer, Bernd & Distelkamp, Martin & Wolter, Marc Ingo, 2007. "Material efficiency and economic-environmental sustainability. Results of simulations for Germany with the model PANTA RHEI," Ecological Economics, Elsevier, vol. 63(1), pages 192-200, June.
    3. Di Vita, Giuseppe, 2007. "Exhaustible resources and secondary materials: A macroeconomic analysis," Ecological Economics, Elsevier, vol. 63(1), pages 138-148, June.
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    Cited by:

    1. Dachs, Bernhard, 2017. "The impact of new technologies on the labour market and the social economy," MPRA Paper 90519, University Library of Munich, Germany.

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