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Integrated Environmental and Economic Assessment of Products and Processes
Author(s) -
Rüdenauer Ina,
Gensch CarlOtto,
Grießhammer Rainer,
Bunke Dirk
Publication year - 2005
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 - 10.1162/108819805775248061
Subject(s) - life cycle assessment , activity based costing , environmental economics , industrial ecology , environmental impact assessment , purchasing , product (mathematics) , life cycle costing , eco efficiency , total cost of ownership , economic efficiency , operations management , production (economics) , business , operations research , environmental resource management , economics , sustainable development , sustainability , engineering , mathematics , marketing , accounting , microeconomics , geometry , political science , law , biology , ecology
Summary The eco‐efficiency analysis method developed and used by the Öko‐Institut analyzes different alternatives that fulfill a defined consumer need, from an environmental as well as an economic perspective. Like life‐cycle assessment (LCA), eco‐efficiency analysis makes possible the setting of priorities in purchasing decisions or can be used to show optimization potentials in product development processes. Eco‐efficiency analysis builds upon two methods: LCA, according to ISO 14040 ff. (to assess the environmental aspects of products and processes), and life‐cycle costing. Life‐cycle costing results in a single figure—the total costs of ownership to one or several actors. The environmental impacts can be evaluated and aggregated as a single score or the impact category indicator results can be kept separate. In either case two single scores can be compared: the total environmental burden or the impact category indicator results, and the total costs of ownership of the alternatives under consideration. The results can then be plotted in two‐dimensional graphs that show the effectiveness of certain measures in environmental and economic terms. The efficiency is expressed as a numerical ratio of environmental savings to difference in costs. Together with furnishing more detailed results and a discussion of additional benefits or potential barriers, eco‐efficiency analysis broadens the basis for decision‐making processes.