Baumol's disease and dematerialization of the economy

摘要: This paper argues that there is reason to be skeptical about the idea transition a service economy will bring dematerialization of production and consequent environmental improvement. because shift an illusion in terms real production, but instead generated by fall price manufacturing goods relative services, which turn caused more rapid productivity growth than services. argument relies on insights Baumol provided nature uses Swedish long-term data sectoral development as empirical illustration. On other hand, cautiously optimistic structural change may greening growth, namely changes patterns sometimes labeled third industrial revolution, connected emergence microelectronics. CO2 emissions show decline after 1970, mainly explained politically driven mix energy carriers, also related stabilization consumption. was slow conjunction with substantial declines intensity within sectors absence heavy sectors, had marked between 1870 1970. Microelectronics have contributed permanently transforming sector lighter direction, reducing losses industries stabilizing household So it appears if some gains from this initiated 1970s, not relatively sector.