Raw Material Equivalents: The Challenges of Accounting for Sustainability in a Globalized World

Abstract

Abstract:The indicator domestic material consumption (domestic extraction + importsexports) is widely used to track the scale, composition, and dynamics of material use. As production increasingly occurs at a spatial distance from the demand it ultimately satisfies, new accounting challenges arise that this indicator may not be able to meet. In response, indicators in raw material equivalents (RME) have been developed to account for material use, no matter where it occurs, associated with final demand. RME indicators are most commonly calculated based on monetary input-output tables with material extensions. The resulting indicators, which are rapidly gaining scientific and political importance, must be interpreted as stemming from a mixed monetary and physical accounting approach. How such an approach differs from a physical accounting approach is shown in this article using an input-output model with a material extension. Neither the physical nor the mixed monetary and physical approach is found to generate results which are incorrect. Instead, the results must be interpreted in light of the assumptions entailed in the approach on which they are based. In making possibilities and limits of interpretation in both cases transparent, RME indicators can more readily be discussed and used by sustainability scientists and practitioners.

Assessing sustainable biophysical human–nature connectedness at regional scales

“…Therefore, we encourage consultation of relevant stakeholders to assure the validity of data where necessary. Likewise, the calculation of embodied flows is a sensitive methodological endeavor (Schaffartzik et al 2015b). It will therefore be important to provide detailed information on steps of the decisions that have been made regarding data sources and estimations to ensure transparency and traceability.…”

Challenges for Social-Ecological Transformations: Contributions from Social and Political Ecology

“…As conflicts over access and control of natural resources are becoming more prevalent in the future, resource fairness and justice becomes a major topic of SETs, both between and within countries [70]. Several concepts exist to analyse such large scale and long term perspectives, e.g., unequal ecological exchange between countries [69], and the unequal carbon footprint of households within China [71].…”

“…Different transition pathways can be analysed within capitalism in more detail to assess the potential for successful interventions and more sustainable development pathways. For example, the "Great Acceleration" after WW2 [43] is marked by totally different resource use patterns at different times in different world regions [69]-and these differences may provide a starting point to define alternative transformation strategies.…”

The environmental burden of food waste

“…food wastage in mass terms) intrinsically assumes that mass flows are proportional to financial flows. This can be extremely problematic for sectors (such as the food industry) where the price per kg of different products varies substantially (Schaffartzik et al, 2015).…”

“…While that approach has some obvious appeal in countries where MIOT are compiled by statistical agencies, it does rely on an allocation of overall food wastage in proportion to food flows measured in monetary terms. Given that monetary allocation can be problematic for products (such as food) that vary greatly in price per unit mass (Schaffartzik et al, 2015), further critique of that approach is warranted.…”