Enhancing the Economic Dimension of LCA + DEA Studies for Sustainability Assessment

Diego Iribarren,Mario Martín-Gamboa

doi:10.3390/wsf-4-c005

Abstract

The combination of Life Cycle Assessment (LCA) and Data Envelopment Analysis (DEA) has been recently proposed as a methodological framework for the sustainability assessment and benchmarking of multiple similar entities. While important benefits are associated with this combined methodology (e.g., quantification of performance indicators and eco-efficiency verification), some underdeveloped aspects need to be addressed. In this respect, further efforts are required so that the LCA + DEA methodology succeeds in coping with the different sustainability dimensions in balance. In particular, previous studies pinpoint the need for further exploring the economic dimension of this type of assessment. Within this context, the present work presents different pathways to enhance the economic component of LCA + DEA studies. On the one hand, straightforward options for widening the economic scope of the LCA + DEA methodology include the calculation of economic savings and/or life-cycle costing indicators linked to the operational benchmarks calculated by the method. On the other hand, indirect pathways rely on the previous calculation of environmental or emergy benchmarks. Environmental benchmarks can be translated into economic terms through the monetization of externalities, while emergy benchmarks can be translated into market-driven indicators for the valuation of ecosystem services. These pathways (either separately or jointly) help boost the use of the LCA + DEA methodology for sustainability assessment.

Highlights

Sustainable development is progressively becoming an aspect of paramount importance for governments and companies worldwide, as well as an integral component of decision-making processes
Life Cycle Assessment (LCA) is a standardized methodology to assess the environmental aspects and potential impacts associated with a product [12,13], while emergy analysis (Em) offers an approximation of the solar energy previously provided to generate a product and/or to support a system and its level of organization [11,14]
As can be observed in this figure, two of these solutions rely directly on the operational benchmarks from the Data Envelopment Analysis (DEA) step. These straightforward strategies for reinforcing the economic scope of the assessment include the calculation of economic savings and/or lifecycle costing (LCC) indicators linked to the operational benchmarks calculated by the method

Summary

Introduction

Sustainable development is progressively becoming an aspect of paramount importance for governments and companies worldwide, as well as an integral component of decision-making processes. Decisions on e.g. product and process development or policy-making must take into account the three dimensions of sustainability (i.e., the environmental, economic and social pillars) in order to favor human well-being and social equity, while significantly reducing environmental impacts [1]. Within this context, sound methodological approaches are needed when it comes to identifying and assessing current sustainability concerns, defining future scenarios and setting strategies toward sustainable production and consumption [2]. LCA is a standardized methodology to assess the environmental aspects and potential impacts associated with a product [12,13], while Em offers an approximation of the solar energy previously provided to generate a product and/or to support a system and its level of organization [11,14]

Methods

Results

Conclusion