Dematerialization and income distribution
Student name: Ms Srishti Goyal
Guide: Dr Nandan Nawn
Year of completion: 2016
Host Organisation: TERI University
Abstract: The neoclassical expansionism view of the capitalist society has led to throughput growth along with the economic growth or GDP. In a Full World, such growth has detrimental implications for both, ecological and human, well-being.
The aim of the study is to tread a path to well-being and growth, simultaneously. This would require decoupling of economic activities from environmental degradation. Here, dematerialization can play a crucial role as it leads to same production with less resources. If resource consumption will be less, then, throughput generation will be less. But, the traditional practices to achieve this goal have failed miserably, as it led to deporting of industries, transmaterialization, Jevons Paradox, etc. It is suggested, through the dissertation, that more egalitarian income distribution can pave way to dematerialization, which will positively affect the well-being of both, the environment and humans.
Graphical analysis is used to draw conclusion from the study. Through, global analysis, a positive relationship between income distribution and material intensity is established. However, at the national and state levels, concrete results weren‟t realized, owing to the data limitations. Further, a positive link between dematerialization and well-being is deduced. Also, it is concluded that transfer of income from rich to poor will induce change in consumption pattern, to ensure the change is favorable, policy should be designed with caution and appropriate policy instruments should be employed. Given the equity-efficiency trade off in the short run, traditional ways to achieve dematerialization can accompany income re-distribution, while, instruments that change mental models form the key element of the policy design, as they change consumption patterns which will ensure reduction in energy/ material consumption, through dematerialization, in the long run.
Keywords: Dematerialization, Efficiency, Equity, Income Distribution, Mental Model
