Machinery and equipment,
integral as technology-specific
capital
goods, play a dual role in climate change: it acts as both a mitigator
and an exacerbator due to its carbon-intensive life cycle. Despite
their importance, current climate mitigation analyses often overlook
these items, leaving a gap in comprehensive analyses of their material
stock and environmental impacts. To address this, our research integrates
input–output analysis (IOA) with dynamic material flow analysis
(d-MFA) to assess the carbon and material footprints of machinery.
It finds that in 2019, machinery production required 30% of global
metal production and 8% of global carbon emissions. Between 2000 and
2019, the metal footprint of the stock of machinery grew twice as
fast as the economy. To illustrate the global implications and scale,
we spotlight key countries. China’s rise in machinery material
stock is noteworthy, surpassing the United States in 2008 in total
amount and achieving half of the US per capita level by 2019. Our
study also contrasts economic depreciation—a value-centric
metric—with the tangible lifespan of machinery, revealing how
much the physical size of the capital stock exceeds its book values.
As physical machinery stocks saturate, new machinery can increasingly
be built from metals recycled from retired machinery.