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 Part Packaging 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., SO 2, CO, NO 2, VOC, PM, GWP). Direct and indirect effects of suppliers should be included.

Summary of Valuations [$/metric ton]

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)

Hybrid Electric Vehicles Current Prius or Performance Prius is more costly than the fuel savings, air pollutant and CO 2 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: –

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