Case Studies in LCA

H. Scott Matthews

reminders

• HW #3 Back– Can decide whether to do #4 now

• Project pres. schedule for Monday• HW #4 and reports due next week

Extended Producer Product Responsibility (EPR)

or “Aiming towards Closed-Loop Supply Chains”

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

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

European EPR

• Voluntary agreements for product takeback: automobiles, electronic products, packaging

• Industry sponsored disassembly and recycling operations

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.

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

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.

BOSCH Datalogger

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

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?

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)

Packaging Takeback System

Manuf.System

PartPackaging

Transport/Delivery

Emissions, (Less?) Cardboard Waste

Computer Assembly

Cardboard Manuf.

Unboxed Part

Empty Box

Transp/Logistics

Reused Box

Energy

Emissions

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)

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

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.

Summary of Valuations [$/metric ton]

Impact Min Median Max CO $1 $520 $1,050 CO2 (GWP) $2 $14 $23 NOx $220 $1,060 $9,500 PM $950 $2,800 $16,200 SO2 $770 $1,800 $4,700 VOCs $160 $1,400 $4,400

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

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

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)

Table 1. Vehicle Attributes and Exhaust Emissions

Vehicle Car Class TestWt1.(lb.)

HC(g/mi)

CO(g/mi)

NOx

(g/mi)CO2

(g/mi)FuelEconomy(mpg)

Acceln.0-60 mph(sec)

SuzukiMetro

Sub-compact

2125 0.042

0.0830.30.34

0.040.11

158207

54.5 15.36

ToyotaPrius

Sub-compact

3000 0.060.1

0.50.55

0.050.13

177232

48.6 14.2

Perf-Prius4

Sub-compact

0.065

0.10.50.56

0.050.14

210273

42.74 10.5

ToyotaCorolla

Compact 2750 0.180.23

1.21.27

0.120.22

236309

36.5 9.78

Corolla-AT

Compact 0.185

0.241.21.27

0.120.23

254333

33.8 9.77

AHEV Sub-compact

0.060.09

0.50.53

0.050.10

121158

72.9 14.2

Table 3. Gasoline Prices and Social Valuations of Emissions and Carbon Dioxide thatMake a Hybrid Electric Vehicle and Corolla Comparable1

Vehicle Perf- Prius Prius AHEV2

$4,000 More Expensive Than Corolla-AT3

Gasoline Price4:$/gal

9.31 6.28 3.47

Emissionsmultiplier5

46 42 31

CO26: $/ton 586 320 141

$2,000 More Expensive Than Corolla-ATGasoline Price:$/gal

5.68 3.80 2.06

Emissionsmultiplier

25 20 9

CO2: $/ton 321 161 50No More Expensive Than Corolla-AT

Gasoline Price:$/gal

2.06 1.32 0.65

Emissionsmultiplier

4 - -

CO2: $/ton 55 2 -Breakeven Vehicle Price Difference7

Price: $ -306 148 1203No Battery Repl.:$ 1174 1628 2683

Attractiveness of Advanced Vehicles

Corolla-AT Perf. Prius Adv. CarPurchase Price plusBattery Replacement

$16,210 $22,100 ?

Fuel $ 5,520 $ 4,370 ?Consumer Total $21,730 $26,470 < $21,730?Air Pollutants* $ 260 $ 120 ?Carbon Dioxide* $ 640 $ 520 ?Social Total $22,630 $27,110 < $22,630?

* Includes vehicle and upstream emissionsVehicle Lifetime: 200,000 km, 12 yearsGasoline Price: $1.50/gallonAir Pollutants: $1400/ton HC, $1050/ton, NOx, $1060/ton COCarbon Dioxide: $14/tonAssumes zero discount rate

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

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

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

LCA Examples

LCA of American Cars

LEED Green Building Standard

• LEED standard all but begs you to do LCA to get credit points

LCA: Organic Foods

• Mixed - what would you expect?

Recycling MSW