Matter Matters: Reconsidering the (De)materialization of a Hundred Years of Growth

The present study attempts an empirical evaluation of the dependency of economic growth on mass resources. The distinct role of mass (non-energy) resources in the production process is investigated. We attempt a methodological contribution by delineating an improved approximation of the economy’s ultimate outcome in the evaluation of the resource intensity. Remaining within the monetary realm, the income index is adopted as the appropriate indicator for the ultimate outcome of the economic system and, hence, the material requirements for producing one unit of income determine the actual dependency of the economy on resources. Our empirical analysis focuses on the historical trajectories of the link between mass resources and the economy over approximately the last 100 years, a period of tremendous growth rates and efficiency gains induced by technological progress. Data availability restricts our analysis to the global economy, the USA and Japan. These are two national economies which have experienced technological miracles in the production process, and the re-orientation of their economies toward knowledge-based sectors. Our findings indicate an increasing dependency of the global economy on mass resources throughout the period of available data (1900–2009). The 4.8-fold increase in global income led to a disproportionate 8.5-fold rise in mass flow. The USA and Japan initiated a decoupling trend in the mid 70’s, after the strong coupling period that followed World War II. These estimates question the prevailing vision of “dematerialization” and cast doubts over the efficiency of current resource policies.