Techno-Economic Assessment (TEA) and Life Cycle Costing Analysis (LCCA): discussing methodological steps and integrability

Abstract

Researchers have always been concerned about investigating new methods of economic evaluation, in order to endow reliable observations and support the sustainable development of new products. In this sense, clarity and homogeneity are necessary to exploit the effectiveness of such instruments that, only in this way, can provide consistent recommendations among sectors and industries of the economy. With respect to technological innovation, two diffused methods are the techno-economic assessment (TEA) and the life-cycle costing analysis (LCCA). However, despite their diffusion and approval, these instruments still lack clear guidelines and a complete documentation of their distinctive elements. Furthermore, no discussion exists about their complementarity and integrability, despite the fact that these methods are frequently concurrently used in the analyses. With the goal of reviewing what sets one method apart from the other, this research shed some lights on the distinctive elements of TEA and LCCA, as well as providing a preliminary discussion on their (possible) methodical integration. At a first glance, present literature provides numerous cues for an analysis which aim is to improve the comprehension of the norms of application of TEA and LCCA. Though, it is necessary a reorganisation of contents which, at present time, appears heterogenous and uncoordinated. Despite some limitations and its preliminary nature, this research contributes to improve the comprehension of the methods under investigation, also introducing a new vision which sees TEA and LCCA converge in a structured model.