The dynamics of material consumption in phases of the economic cycle for selected emerging countries

Abstract

Domestic materials are vital for production and consumption patterns and their sustainable use holds a prominent place in supporting a virtuous circle of wellbeing-environment-ecological system. In this context, this study contributes to the comprehension of material use dynamics during different phases of the economic cycle, bringing new insights into the dematerialization process. Therefore, this paper examined the effect of economic cycles on material consumption using a STIRPAT framework for 12 emerging economies for the period 1970–2017. In order to ascertain robustness, our estimation techniques account for (country-specific factors) endogenous economic growth, cross-sectional dependence, and cross-country heterogeneity within a panel framework. Thus, evidence suggests that economic expansion constitutes periods of increase in material consumption mainly due to the consumption side effect of expansion, while the occurrence of recession is associated with economic dematerialization. In addition, we found a moderating effect of material productivity on materials utilization. Based on these insights, we submit that increasing material productivity leads to sustainable practices and patterns of materials utilization. On this note, policymakers should understand the effective mechanisms that are detrimental to achieving the sustainable development goals (SDGs) such as curbing material consumption during the recession and maintain a smooth material consumption balance over economic cycles.