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John Spacey, June 21, 2016 updated on February 01, 2019
Dematerialization is an economics term that describes the tendency for economic output to require less materials with time. This is good news for the economy as economic shocks due to commodity price fluctuations become less likely. It's also good news for the environment as economic activity that uses less materials usually doesn't pollute as much. The following are a few examples of dematerialization.
PaperThe shift from paper to electronic data.EfficiencyThe tendency for vehicles, electronics and buildings to become more energy efficient with time.SolarThe phase out of fossil fuels in favor of solar energy.MiniaturizationThe tendency for things to become smaller and lighter with time. Electronic CommerceThe shift from economic activity in physical locations such as shopping malls to virtual locations such as games.
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