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In Search of a Consistent Solution to Allocation of Joint Production
Author(s) -
Weidema Bo P.
Publication year - 2018
Publication title -
journal of industrial ecology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.377
H-Index - 102
eISSN - 1530-9290
pISSN - 1088-1980
DOI - 10.1111/jiec.12571
Subject(s) - consistency (knowledge bases) , production (economics) , product (mathematics) , mathematical optimization , point (geometry) , computer science , consistency model , key (lock) , economics , mathematics , microeconomics , data consistency , distributed computing , geometry , computer security , artificial intelligence
Summary Three consistency problems are identified that arise when partitioning a product system with joint production according to an allocation key, such as revenue or mass of the joint products, namely: lacking consistency of rationales and procedures; lacking consistency of monetary, mass, and energy balances in the partitioned product systems; and lacking consistency of results across model resolution and classification of the intermediate flows. Different solutions to these consistency problems are described, including the attempt of ecoinvent to solve the third consistency problem with a system model that uses revenue allocation at the point of substitution. The problems with the different practical implementations are described. For each of the three consistency problems, a solution is proposed and combined into a single consistent solution. The consistency of rationales and procedures is ensured by asking only one question at a time and performing a separate allocation and calculation for each question. The problem of maintaining monetary, mass, and energy balances is solved by a generalized allocation correction. The identified problem with consistency of results across model resolution and classification is solved by redefining the point of substitution. It is described what consequences the solutions will have if their results are misused for decision making that will shift demand between products.