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Extraction and dematerialization in Latin America, 1970–2023

Abstract:

The aim of this article is to examine the causes of the increase in material extraction in Latin America and the Caribbean (LAC) in a context of weak relative dematerialization. It argues that Gross Domestic Product (GDP) growth, far from reducing pressure on natural resources, has driven the expansion of extraction by sustaining a growth pattern based on material-intensive activities. In this context, the article analyses the causes and consequences of this intensification between 1970 and 2023, highlighting its negative impacts on ecosystems and the emergence of social conflicts, and incorporates a comparative perspective with other world regions. The results, based on a VAR model, show that in LAC and South America extraction increases in response to economic growth, as expressed by GDP; and, using a PVAR model and Granger causality tests reveals that LAC extraction affects only fossil fuel exports. In South America, there is bidirectional causality between extraction and fossil fuel exports, while biomass exports depend on extraction. These findings stress the urgent need to redirect economic strategies toward more sustainable and equitable development models in the region.