Material resource decoupling dilemma: Convergence and traps of in-use stock productivity in national economy development.

Various studies have suggested decoupling material stock from economic output as an important measure for promoting sustainable development. Here, we develop three theoretical hypotheses to describe the evolution features and economic effects of material stock intensity, and predict in theory that (1) Countries with higher material stock intensity are more likely to decouple economic growth from material stock. (2) Material stock intensity follows convergence trends. (3) Higher material stock intensity leads to higher long-run economic growth rates. To examine the adaptability of these hypotheses, we choose steel in-use stock as the proxy for the material capital stock and use panel data in 85 countries from 1950 to 2018 to conduct empirical analysis. Our empirical results in most countries support the theoretical predictions of the hypotheses. In particular, a 0.1t/k$ increase in steel stock intensity leads to a 2.12% increase in the probability of decoupling between steel stock and economic output next year and a 0.34% increase in the long-run GDP per capita growth rate annually. Moreover, steel stock intensity converges to approximately 0.25t/k$ to 0.35t/k$ at mature development stages. We predict that, except China, which is expected to follow decoupling trends, other large developing economies will couple economic output with steel stock. However, the shape of intensity curves is still uncertain for highly developed countries in the future.