Dematerialisation of consumption: a win-win strategy?

Tobias Kronenberg

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Sustainable consumption; input-output model; social sustainability; income distribution (search for similar items in EconPapers)
JEL-codes: C67 E12 Q01 Q43 Q57 (search for similar items in EconPapers)
Date: 2010-10-01
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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