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Decomposition Analysis of Finnish Material Flows: 1960–1996

Author

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  • Jukka Hoffrén
  • Jyrki Luukkanen
  • Jari Kaivo‐oja

Abstract

To the extent that environmental impacts are the consequence of the magnitude of total material input into production in an economy, they can be lessened by reducing the use of materials—by concentrating on what has been called qualitative growth. This article presents a summary of Finnish resource use over the period 1960–1996 as a means of evaluating the trends in material use and providing a basis for assessments of sustainability. It adapts the technique of decomposition analysis developed in the field of energy studies to distinguish the effects of changes in aggregate economic activity (“activity effect”), composition of industrial activity (“structural effect”) and materials intensity of use (“intensity effect”) on a sectoral basis.p According to the analysis presented here, materials consumption in Finland has grown substantially between 1960 and 1996 in the electricity, gas and water supply, pulp and paper production, civil engineering, and mining and quarrying sectors. In the same period, the ratio of GDP/mass of material mobilized has improved by 175 percent. Economic growth has caused the largest increases in materials use in the building of infrastructures; for example roads, waterways, means of supplying electricity, gas, and water, and in the production of paper and paper products. The least growth took place in the transport, basic metals production, and mining and quarrying sectors.

Suggested Citation

  • Jukka Hoffrén & Jyrki Luukkanen & Jari Kaivo‐oja, 2000. "Decomposition Analysis of Finnish Material Flows: 1960–1996," Journal of Industrial Ecology, Yale University, vol. 4(4), pages 105-125, October.
    • Handle: RePEc:bla:inecol:v:4:y:2000:i:4:p:105-125
    DOI: 10.1162/10881980052541972
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    Cited by:

    1. Babak Ebrahimi & Leonardo Rosado & Holger Wallbaum, 2022. "Machine learning‐based stocks and flows modeling of road infrastructure," Journal of Industrial Ecology, Yale University, vol. 26(1), pages 44-57, February.
    2. Pothen, Frank, 2017. "A structural decomposition of global Raw Material Consumption," Ecological Economics, Elsevier, vol. 141(C), pages 154-165.
    3. Brijesh Mainali & Jyrki Luukkanen & Semida Silveira & Jari Kaivo-oja, 2018. "Evaluating Synergies and Trade-Offs among Sustainable Development Goals (SDGs): Explorative Analyses of Development Paths in South Asia and Sub-Saharan Africa," Sustainability, MDPI, vol. 10(3), pages 1-25, March.
    4. Lombardini, Chiara & Kosenius, Anna-Kaisa & Kulmala, Soile & Lindroos, Marko, 2011. "Is there a Finnish Animal Welfare Kuznets Curve?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114379, European Association of Agricultural Economists.
    5. Tobias Wendler, 2019. "About the Relationship Between Green Technology and Material Usage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1383-1423, November.
    6. Auci, Sabrina & Vignani, Donatella, 2020. "Mines and quarries production: A driver analysis of withdrawals in Italy," Resources Policy, Elsevier, vol. 67(C).
    7. Pothen, Frank & Schymura, Michael, 2014. "Bigger cakes with less ingredients? A comparison of material use of the world economy," ZEW Discussion Papers 14-030, ZEW - Leibniz Centre for European Economic Research.
    8. Song, Yi & Huang, Jianbai & Zhang, Yijun & Wang, Zhiping, 2019. "Drivers of metal consumption in China: An input-output structural decomposition analysis," Resources Policy, Elsevier, vol. 63(C), pages 1-1.

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