Case Studies in LCA

1. Case Studies in LCA H. Scott Matthews

2. reminders • HW #3 Back • Can decide whether to do #4 now • Project pres. schedule for Monday • HW #4 and reports due next week

3. Extended Producer Product Responsibility (EPR)or “Aiming towards Closed-Loop Supply Chains”

4. EPR in US • Safety – labeling and potential liability • Children choking on toys • Laptops overheating • Malfunction – warranties • Leasing/Services as marketing opportunity • Copying machines • Vehicles (airplanes, railcars, automobiles) • Solvents • Carpet

5. EPR in US(cont.) • Batteries: legislated return programs • Lead acid battery deposits and restrictions • Rechargeable battery recycling act (big issue – use of post to send batteries) • Recycling encouragement programs • Aluminum • Steel • Motor vehicles • Computers

6. European EPR • Voluntary agreements for product takeback: automobiles, electronic products, packaging • Industry sponsored disassembly and recycling operations

7. Example: European Power Tools • Mfg. agreement to support takeback and recycling of power tools. • Collection at retail stores, ship in bulk to recycling center, repair or shredding. • Recycling loses money for each power tool (shipping + handling > material sale) • charges to mfg of power tool. • Charges roughly equal reverse logistics costs.

8. Power Tools (cont.) Relatively few power tools returned Lack of incentive to return. Pile up in attics, basements, garages, etc. Export of used tools to Eastern Europe Re-manufacturing possibility – Markus Klausner Re-manufacturing more profitable than recycle: return a rebate for returns Re-manufacturing depends upon motor

9. Datalogger • Device inserted into power tool to record use and temperature. • Read-out to aid re-manufacturing decision making • Ancillary use – effective way to gather information on actual power tool use.

10. BOSCH Datalogger

11. Datalogger (cont.) • Cost of datalogger incurred for all power tools. • Profit only for returned power tools suitable for re-manufacturing Wish to Encourage More Returns

12. Design for End-of-Life • Easier disassembly • Information on materials – on product or in database? • Limited number of materials • Valuable materials – reduce life cycle cost? • Mfg. Incentive for DfE-o-L?

13. Electronics Packaging Takeback • From earlier Lecture, how to organize system for cost/environment? • Current system “ships and forgets” • Leads to significant packaging waste • How can system be redesigned? • What are tradeoffs? • See Matthews California Management Review, 2004 paper (given out in class)

14. Packaging Takeback System Energy Cardboard Manuf. Reused Box Transp/ Logistics Emissions Part Manuf. System Packaging Empty Box Transport/ Delivery Computer Assembly Unboxed Part Emissions, (Less?) Cardboard Waste

15. LCI and Accounting • Life Cycle Inventories are inherently accounts of effects as estimated • As discussed earlier, using and interpreting inventories a challenge • This is major current research area • Only limited useful results (we’ll see)

16. Vectors to Scalars • Converting an inventory of even similar effects (e.g. air pollution) into some common unit is difficult • It makes sense to understand how the accounting world works and pursues similar issues • Also to put in context environmental cost accounting and see how LCA can inform those efforts

17. Externalities / External Costs • Real costs to society, but not paid by producers or reflected in typical corporate accounting systems. • Estimate external costs from air emissions of conventional pollutants (e.g., SO2, CO, NO2, VOC, PM, GWP). • Direct and indirect effects of suppliers should be included.

18. Summary of Valuations [$/metric ton]

19. Application of Valuation:Hybrid Electric Vehicles (HEV) • ICE and Battery Powered • Emissions and Fuel Economy Benefits • Toyota Prius - Performance not comparable to current internal combustion engine (ICE) vehicle • Evaluate benefits of improved performance Prius and Corolla ICE- Consumer and Social Perspectives

20. Hybrid Electric Vehicles • Compare lifetime private and social costs of Prius and Corolla • Private Costs • Vehicle purchase price • Maint. cost (battery replacement) • Fuel cost • Social Costs • Costs of air pollutants and GHG emitted

21. Hybrid Electric Vehicles • Cost-effective means to achieve emissions reductions? • Construct scenarios to equate lifetime costs of Prius and Corolla • HEV price premium • Required gasoline price • Valuation of emissions reductions • Social value of abating carbon dioxide • Note data/assumptions from 2000 (may be different now)

25. Hybrid Electric Vehicles • Current Prius or Performance Prius is more costly than the fuel savings, air pollutant and CO2 emissions benefits would justify • To be attractive economically, an HEV will have to offer features that cannot be offered by a conventional ICE

26. Conclusions • Although controversial.. • Valuation/weighting methods are helpful in collapsing information into meaningful comparisons • The types of comparisons possible are large with such methods • The number of interesting policy problems to address is large

27. Resources • We have GaBi license • Obviously, EIO-LCA • Lester Lave on ed. Board of IJLCA • I have journal issues in my office • Journal of Industrial Ecology • EPA: • http://www.epa.gov/ORD/NRMRL/lcaccess/resources.htm

28. LCA Examples

29. LCA of American Cars

30. LEED Green Building Standard • LEED standard all but begs you to do LCA to get credit points

31. LCA: Organic Foods • Mixed - what would you expect?

32. Recycling MSW