HBR IdeaCast Dematerialization and What It Means for the Economy — and Climate Change
Sep 17, 2019
Andrew McAfee, a principal research scientist at MIT and co-founder of the Initiative on the Digital Economy, discusses the intriguing trend of dematerialization. He explains how advanced economies are thriving while using fewer resources thanks to technology. This shift is promising for environmental sustainability but requires supportive public policies. McAfee also highlights the need for urgent decarbonization efforts and the importance of collaboration between businesses, government, and the public to combat climate change effectively.
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Dematerialization
- Advanced economies are growing while using less material overall, a trend called dematerialization.
- This is counterintuitive, as growth has historically meant increased resource consumption.
Timber and Paper Use Decline
- US timber use has decreased due to substitutions like concrete railroad ties and a decline in wooden shipbuilding.
- Paper use has also fallen significantly due to digital alternatives like GPS and online documents.
Plateau in Cardboard Use
- Despite increased online shopping, cardboard use has plateaued since 1995.
- Companies like Amazon continuously innovate to reduce packaging, driven by cost-saving motivations.
