Uploaded by: Knoema
Accessed On: 29 March, 2018
Domestic material consumption (DMC) measures the total amount of materials directly used by an economy and is defined as the annual quantity of raw materials extracted from the domestic territory of the focal economy, plus all physical imports minus all physical exports. The indicator Domestic Material Consumption (DMC) is based on the Economy-wide Material Flow Accounts (EW-MFA). The theory of Economy-wide material flow accounts (EW-MFA) includes compilations of the overall material inputs into national economy, the changes of material stock within the economy and the material outputs to other economies or to the environment. EW-MFA covers all solid, gaseous, and liquid materials, except water and air. Water included in products is included.
The three main components of the DMC are:
- the raw materials domestically extracted (domestic extraction);
- the total import;
- the total export.
It is important to note that the term "consumption" as used in DMC denotes apparent consumption and not final consumption. DMC does not include upstream hidden flows (materials that are extracted or moved, but do not enter the economy) related to imports and exports of raw materials and products.
The indicator provides a basis for policies to decouple the growth of the economy from the use of natural resources so as to achieve a reduction of environment degradation resulting from primary production, material processing, manufacturing and waste disposal. DMC is a useful indicator, as it provides an assessment of the absolute level of use of resources and allows distinguishing consumption driven by domestic demand from consumption driven by the export market. Combined with GDP, it also provides insight into whether decoupling between the use of natural resources and growth of the economy is taking place.
The indicator is a Sustainable Development Indicator (SDI). It has been chosen for the assessment of the progress towards the objectives and targets of the EU Sustainable Development Strategy.
tsdpc220´s table: Eurobase > Tables by themes > Environment and energy > Environment > Environmental accounts > Components of domestic material consumption (tsdpc220)
tsdpc220´s table within the SDI set: Eurobase > Tables on EU policy > Sustainable Development Indicators > Sustainable consumption and production > Resource use and waste > Components of domestic material consumption (tsdpc220)