Development Patterns of Material Productivity: Convergence by Larissa Talmon-Gros

By Larissa Talmon-Gros

Increasing matters in regards to the world’s common assets and sustainability remain an important factor for worldwide improvement. therefore numerous political tasks and methods for eco-friendly or resource-efficient development either on nationwide and overseas degrees were proposed. A middle portion of those projects is the promoting of a rise of source or fabric productiveness. This dissertation examines fabric productiveness advancements within the OECD and BRICS international locations among 1980 and 2008. via utilising the concept that of convergence stemming from fiscal progress concept to fabric productiveness the research presents insights into either facets: fabric productiveness advancements more often than not in addition potentials for sped up advancements in fabric productiveness which for this reason may perhaps permit a discount of fabric use globally. the result of the convergence research underline the significance of policy-making in regards to expertise and innovation coverage allowing the construction of resource-efficient services and products in addition to know-how move and diffusion.

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Another property of the neoclassical production function, which is essential for convergence, is the diminishing returns to capital accumulation. Firstly, a neoclassical production function exhibits positive and diminishing marginal products with respect to each input, for K > 0 and L > 0: 32 4 Convergence: Theory, Econometrics, and Empirics 2 ∂F > 0, ∂K ∂ F <0 ∂K 2 ∂F > 0, ∂L ∂ F <0 ∂L2 2 ð4:6Þ Thus, every additional capital good generates a positive marginal product, which however decreases over time.

Additionally, the stage of economic development influences resource use. It is assumed that the more industrialized a country is, the lower its resource use per unit GDP. Given these factors and their interdependencies, it is very likely that resource use will continue to intensify in the future and make existing scarcities more acute (Millennium Ecosystem Assessment 2005, p. 17). As a consequence of the overuse of natural resources, the differences between modern and preindustrial environmental damages become more evident.

In addition this underlines the importance of avoiding a rebound effect. The following two chapters present the methods for a systematic analysis of material productivity development. Firstly, a method for analyzing development patterns and empirical regularities of economic variables—convergence analysis— is presented. This is a framework widely used for analyzing empirical regularities in growth and development contexts. Secondly, a method for measuring material flows is presented as well as a review on productivity indicators, including their benefits and limitations.

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