ABSTRACT
East Asia is a net importer of raw materials, and economic growth is driving increased rates of consumption. This chapter focuses on damages to the natural environment resulting from use of raw materials, which include limited availability of natural resources and resource depletion, environmental destruction by resource mining and environmental loads caused by economic activities related to resource mining.
This chapter explores some of the key linkages between energy and material consumption, including the potential resource requirements of reducing greenhouse gas emissions. Using the E3ME model, we estimate the economic and environmental impacts of applying a materials (or resource) tax. We find that a simple materials tax is effective at reducing material consumption, but it may lead to negative economic impacts. A broader range of policy options, however, may mitigate some of these negative economic effects and could even lead to positive impacts on GDP.
