ORIGINAL RESEARCH
How Does Metal Consumption Decouple?
Evidence from Copper Based upon
Tapio Theory and LMDI Model
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1
Faculty of International Trade, Shanxi University of Finance and Economics, Taiyuan 030006, China
2
Institute of Industrial Economics, Chinese Academy of Social Sciences, Beijing 100836, China
3
Faculty of Business and Administration, Shanxi University of Finance and Economics, Taiyuan 030006, China
Submission date: 2024-02-29
Final revision date: 2024-09-12
Acceptance date: 2024-10-13
Online publication date: 2024-12-16
Corresponding author
Shanshan Liang
Faculty of International Trade, Shanxi University of Finance and Economics, Taiyuan 030006, China
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ABSTRACT
Copper, the cornerstone metal in sustainable energy initiatives, plays a crucial role in applications
such as electric vehicles, wind turbines, and other green energy projects. This paper aims to study
the evolution and decoupling relationship between copper consumption and economic growth. We
first quantified the trends of the Copper Decoupling Index. Utilizing an expanded Kaya identity
and logarithmic mean Divisia index (LMDI) decomposition method, the analysis explores the key
drivers behind copper consumption. The results are as follows: 1) Developed countries such as the United
Kingdom and the United States have showcased an ideal state of strong decoupling between economic
growth and copper consumption, whereas Germany and Japan have generally shown signs of negative
or weak decoupling. Conversely, in China, the consumption of copper has experienced negative
decoupling growth. 2) During China’s industrialization process, the primary catalyst for changes
in copper consumption was the scale effect, while the structural and efficiency effects exerted negative
regulatory influences. 3) Recent structural adjustments in China have highlighted the inhibitory impact
of structural changes on electricity consumption growth. From 2006–2022, the influence of industrial
structural changes on copper consumption has been predominantly governed by negative regulation,
with its intensity increasing year by year since 2014. These research findings offer valuable insights for
policymakers globally in developing tailored strategies for copper supply and consumption in varying
economic growth scenarios.