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Demateralizing the economy isn’t happening (Hint: All that material is actually hiding in plain sight)

Demateralizing the economy isn’t happening (Hint: All that material is actually hiding in plain sight)

If you are trying to prove something is true and certain facts get in the way, it’s almost always useful to exclude them. This is apparently what technology cheerleader Andrew McAfee has done in his recent book More from Less, which claims that advanced economies have been dematerializing for something like the last 40 years. Simply put, those economies are producing more output with little or no increase in physical resources.

There’s just one little problem as anthropologist Jason Hickel points out in his review of More from Less: McAfee forgot to count the physical resources used in making products imported from other countries by all those advanced economies. McAfee only counts those resources extracted within the boundaries of the advanced countries.

I am highlighting Hickel’s piece not so much as a book review. There are dozens of books making similar ridiculous claims that are contradicted by the facts. I am highlighting the piece because Hickel provides perhaps the clearest, most concise refutation of the nonsense that McAfee and others like him are peddling.

Let me touch on the high points though I encourage you to read the full article:

  1. “There has been zero dematerialization. No green growth. It was all an illusion of accounting.”
  2. Global resource use has actually been accelerating faster than growth in the global economy. We are becoming more resource-intensive, not less.
  3. Ecologists believe human societies are 90 percent over any sustainable rate of resource consumption.
  4. The economy can’t become infinitely more efficient. There are limits on how much efficiency can be taken out of any process as each increment of efficiency in resource use is more costly to implement.

…click on the above link to read the rest of the article…

A Response to McAfee: No, the “Environmental Kuznets Curve” Won’t Save Us

A RESPONSE TO MCAFEE: NO, THE “ENVIRONMENTAL KUZNETS CURVE” WON’T SAVE US

A number of people have asked me to respond to a piece that Andrew McAfee wrote for Wired, promoting his book, which claims that rich countries – and specifically the United States – have accomplished the miracle of “green growth” and “dematerialization”, absolutely decoupling GDP from resource use. I had critiqued the book’s central claims here and here, pointing out that the data he relies on is not in fact suitable for the purposes to which he puts it.

In short, McAfee uses data on domestic material consumption (DMC), which tallies up the resources that a nation extracts and consumes each year. But this metric ignores a crucial piece of the puzzle. While it includes the imported goods a country consumes, it does not include the resources involved in extracting, producing, and transporting those goods. Because the United States and other rich countries have come to rely so heavily on production that happens in other countries, that side of resource use has been conveniently shifted off their books.

In other words, what looks like “green growth” is really just an artifact of globalization. Given how much the U.S. economy relies on globalization, McAfee’s data cannot be legitimately compared to U.S. GDP, and cannot be used to make claims about dematerialization. If McAfee wants to compare GDP to domestic resource consumption, then he needs to first subtract the share of US GDP that is derived from production that happens elsewhere. He does not. Nor is this possible to do.

Ecological economists have been aware of this problem for a long time. To correct for it, they use a more holistic metric called “raw material consumption,” or Material Footprint, which fully accounts for materials embodied in trade.

…click on the above link to read the rest of the article…

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