Growth in materials use, coupled with the environmental consequences of material extraction, processing and waste, is likely to increase the pressure on the resource bases of our economies and jeopardise future gains in well-being. This outlook can help decision-makers understand the direction in which we are heading and help to assess which policies can support a more circular economy.

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Question restatement: Growth in materials use, coupled with the environmental consequences of material extraction, processing and waste, is likely to increase the pressure on the resource bases of our economies and jeopardise future gains in well-being. This outlook can help decision-makers understand the direction in which we are heading and help to assess which policies can support a more circular economy.

Option 1: True. This statement aligns with the concept that higher material throughput and the associated environmental impacts put greater stress on natural resource bases (minerals, forests, water, biodiversity) and can threaten long-term well-being if resources become scarcer or more costly to access. It also reflects the idea that understanding this outlook is useful for decision-makers, as it provides a basis for evaluating policies aimed at decoupling economic growth from material use, promoting circular economy strategies, resource efficiency, and waste reduction. The justification hinges on established links between material life cycles, environmental externalities, and policy planning for sustainable pathways.

Option 2: False. The claim would be incorrect if one argued that material growth and environmental consequences do not affect resource bases or well-being, or that such outlooks offer no utility for policy. However, counterarguments would require denying the empirical relationships between material throughput, environmental pressure, and resource limitation, or disputing the usefulness of an outlook for policy design. These positions misinterpret the role of systemic resource constraints and the purpose of scenario analysis for circular economy policy development.

In sum, the first option emphasizes the causal chain from material use and environmental impact to resource stress and potential well-being implications, while the second option would deny or minimize those connections and the policy-relevance of such outlooks.

25847 Sustainable Finance - Spring 2025 Quiz 4: Topic 4 - Role of Environmental Modelling

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