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activities is still very limited. First trade-related indicators have been proposed and<br />

studies applying them will be presented in the following section. Most MFA indicators<br />

on the economy-wide level are highly aggregated and do not allow assessments<br />

disaggregated by economic sectors or products. Another important point is the fact<br />

that in aggregated MFA indicators, qualitative aspects (like the potential for<br />

environmental harm) of different types of material flows remains unconsidered. MFA<br />

indicators thus can reflect environmental pressures stemming from human activities,<br />

but do not provide information on specific environmental impacts.<br />

3.1 Review of trade-related physical accounting studies<br />

In MFA studies on the national level, direct physical trade flows between the country<br />

under consideration and the rest of the world are assessed. Figure 1 shows empirical<br />

examples for selected industrialized and two Latin American countries.<br />

Figure 1: Imports and exports as shares of direct material input for selected<br />

industrialized and Southern countries, 1975-1995 (Venezuela 1988-1997)<br />

60<br />

50<br />

40<br />

30<br />

20<br />

Germany<br />

10<br />

0<br />

1975 1980 1985 1990 1995<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

United Kingdom<br />

0<br />

1975 1980 1985 1990 1995<br />

Source: Fischer-Kowalski and Amann, 2001<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

The Netherlands<br />

0<br />

19 75 19 8 0 19 8 5 19 9 0 19 9 5<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

The four examples of industrialized countries illustrate, that in these countries<br />

physical imports exceed physical exports, resulting in a physical trade surplus. 4<br />

Densely populated countries with a scarce endowment of natural resources are in<br />

particular dependent on resource imports from abroad. In the case of Japan, most<br />

resources are consumed domestically by the Japanese socio-economic system. In<br />

the case of the Netherlands, a large fraction of its high physical imports is re-exported<br />

4 Note that the calculation of physical trade balances is done by subtracting exports from imports, in<br />

reverse to monetary trade balances. Deficit in this context refers to the loss of biophysical resources.<br />

11<br />

Japan<br />

0<br />

1975 1980 1985 1990 1995<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

Brazil<br />

0<br />

1975 1980 1985 1990 1995<br />

60<br />

50<br />

40<br />

30<br />

20<br />

10<br />

Venezuela<br />

0<br />

1988 1990 1992 1994 1996

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