Measuring Preferences on Environmental Damages in LCIA. Part 1: Cognitive Limits in Panel Surveys (9 pp)

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Part 1: Cognitive Limits in Panel Surveys · Part 2: The Question Format in Panel Surveys This series of two papers discusses the elicitation of weights for damage categories in LCIA with the aid of panel surveys. The papers focus especially on methodological aspects in panel surveys. Part 1 discusses potential cognitive limits of the panel members to understand the reference that is weighted. Part 2 focuses on the influence of the question format and compares results from two different weighting tasks: discrete choice (between alternatives) and score allocation.

Goal, Scope and Background

The weighting of environmental impacts and damages on the safeguard subjects Human Health, Ecosystems, and Resources is a significant step of full aggregated LCIA. Panel surveys have become a common approach in LCIA research to investigate the preferences of stakeholders on environmental impacts and damages. Despite the numerous studies, the knowledge on how to elicit reliable weights is still poor and inconsistent. We present a questionnaire study with 58 environmental science students to investigate so-called framing effects in panel surveys.

Main Features

The study investigates the significance of different framings, which were provided by three references. In addition, the significance of quantitative information provided in the questionnaire is tested. The references are (a1) safeguard subjects without specified additional information, (a2) damages in Europe as they are perceived by the panelist, and (a3) quantified scenarios derived from Eco-indicator99. All participants ranked and rated the importance of the safeguard subjects three times, once within each reference system. According to a test-of-scope study, quantitative information given to the panelist was varied. One level (b1) included data from the Ecoindicator99 methodology, whereas the other group (b2) received data with significantly higher Human Health damages and lower Ecosystem damages, ceteris paribus. This design allows testing the influence of quantitative data on the rating.

Results

The weighting of the safeguard subjects (a1) reveals that Human Health is considered a slightly more important safeguard subject than Ecosystems. However, both are judged to be significantly more important than Resources. This picture changes for the references (a2) and (a3) where damages were weighted. For both references, the respondents rated damages to Ecosystems as most important followed by Resources and Human Health, showing by far the lowest weights. Therefore, the framing of the reference that was weighted played a significant role. The ratings of the subgroups (b1) and (b2) did not differ with respect to the importance of damages, though substantially different quantitative information was given.

Conclusion and Outlook

The participants of the study were obviously insensitive with respect to quantitative information provided. This raises three questions, which are discussed. What is the mental model upon which respondents base their beliefs and values? Can we expect that 'more sophisticated' subjects would respond differently? Which prerequisites should an empirical weighting procedure fulfill in order to incorporate numerical data? We propose different approaches for future procedures in order to accurately analyze these questions.     

Operational Eco-efficiency: Comparing Firms' Environmental Investments in Different Domains of Operation

Eco-efficiency has been established as a crucial concept for corporate environmental management. Most approaches deal with eco-efficiency on the level of the company or the product. However, given that companies have special budgets earmarked for environmental operations or investments, the question arises as to which operation within which domain is the most eco-efficient. This article presents an approach to supporting these decisions by calculating eco-efficiency on the operational level. The procedure is demonstrated using a case study of the Swiss National Railway Company. Investments and operations in the domains of energy production, landscape and nature conservation, noise protection, and contaminated soil remediation are assessed and compared. Decision-makers seeking an eco-efficient corporate investment policy will find, in this concept, a guideline for prioritizing various domains of operation as well as the operations within a domain.     

The Environmental Importance of Energy Use in Chemical Production

In many cases, policy makers and laymen perceive harmful emissions from chemical plants as the most important source of environmental impacts in chemical production. As a result, regulations and environmental efforts have tended to focus on this area. Concerns about energy use and greenhouse gas emissions, however, are increasing in all industrial sectors. Using a life cycle assessment (LCA) approach, we analyzed the full environmental impacts of producing 99 chemical products in Western Europe from cradle to factory gate. We applied several life cycle impact assessment (LCIA) methods to cover various impact areas. Our analysis shows that for both organic and inorganic chemical production in industrial countries, energy‐related impacts often represent more than half and sometimes up to 80% of the total impacts, according to a range of LCIA methods. Resource use for material feedstock is also important, whereas direct emissions from chemical plants may make up only 5% to 10% of the total environmental impacts. Additionally, the energy‐related impacts of organic chemical production increase with the complexity of the chemicals. The results of this study offer important information for policy makers and sustainability experts in the chemical industry striving to reduce environmental impacts. We identify more sustainable energy production and use as an important option for improvements in the environmental profile of chemical production in industrial countries, especially for the production of advanced organic and fine chemicals.     

Environmental impact assessment: the growing importance of science in government decision making

The broad acceptance of the conclusions and recommendations contained in the Brundtland Report with its emphasis on environmentally sustainable development is a good indication that this concept is gaining world-wide recognition. Science and the ensuing technology must be credited for creating and sustaining our modern society and we must now apply our expertise to minimize the adverse impacts of industrial growth and preserve our environment.Real progress towards the reconciliation of economic and environmental goals will require effective incorporation of environmental impact assessment (EIA) into the planning process and this paper describes the steps taken to improve the concept and practice of EIA in Canada. Public trust and participation in the process are key ingredients for its success as well as good science and meaningful dialogue between the scientists, the public and the decision makers. The availability of standard and reliable bioassessment techniques, which is the theme of this conference, should be helpful in strengthening the scientific basis for biophysical aspects of EIA.     

Corporate and Product Carbon Footprint under Compound Hybrid Analysis: Application to a Spanish Timber Company

The European Union (EU) is advancing steadily toward the stabilization of atmospheric greenhouse gas concentrations. Various sectors are now obliged to make reductions, and new policies based on the carbon footprint are being encouraged. However, voluntary reporting of so‐called scope 3 emissions is hindering successful implementation of these policies. In this study, we present a tiered hybrid analysis to report emissions according to the ISO/TR 14069 standards and to obtain complete measures of scope 3 emissions. A process analysis for scope 1 and scope 2 emissions is complemented with a multiregional input‐output analysis for upstream scope 3 emissions. This novel approach is applied to the case study of a Spanish timber company. Its total carbon footprint in 2011 was 783,660 kilograms of carbon‐dioxide equivalent, of which 88% correspond to scope 3 emissions. These emissions are globally distributed; 71% are from European countries, followed by 8% from emerging economies (Brazil, Russia, India, Indonesia, Australia, and Turkey), 5% from China, and, finally, 16% from the rest of the world. We identify and discuss the advantages and disadvantages of this novel approach, the European implementation of which could be highly effective in reducing global carbon emissions.     

Corporate Carbon and Financial Performance: A Meta‐analysis

We use meta‐analytical techniques to address the question“When does it pay to be green?” Existing meta‐studies in this research field cover a range of ecological issues and synthesize a variety of environmental performance measurements. This precludes a detailed examination of how differences in measurement approaches account for variations in empirical results. In order to conduct such an examination, we focus on only one ecological issue, climate change, and one particular operational performance dimension: corporate carbon performance as expressed by a firm's level of carbon dioxide (CO₂) emission equivalents. Our sample comprises 68 estimations from 32 empirical studies, covering a total of 101,775 observations. In addition to our examination of the causal relationship, we analyze whether differences in operationalizations of carbon performance and financial performance predetermine empirical outcomes. The meta‐analytic findings indicate that carbon emissions vary inversely with financial performance, indicating that good carbon performance is generally positively related to superior financial performance. The results show that relative emissions are more likely to produce statistically significant results than absolute emissions. Furthermore, market‐based measures of financial performance are more positively related to carbon performance than accounting‐based measures. We conclude that measurement characteristics, which were not analyzed in detail by previous meta‐studies, may present a great source of cross‐study variability.     

Distance-to-Target Weighting in Life Cycle Impact Assessment Based on Chinese Environmental Policy for the Period 1995-2005 (6 pp)

Background and Objective

. Values in the known weighting methods in Life Cycle Assessment are mostly founded by the societal systems of developed countries. What source of weights and which weighting methods are reliable for a big developing country like China? The purpose of this paper is to find a possible weighting method and available data that will work well for LCA practices conducted in China. Since government policies and decisions play a leading role in the process of environmental protection in developing countries, the weights derived from political statements may be a consensus by representatives of the public.

Methods

'Distance-to-political target' principle is used in this paper to derive weights of five problem-oriented impact categories. The critical policy targets are deduced from the environmental policies issued in the period of the Ninth Five-year (1996-2000) and the Tenth Five-year (2001-2005) Plan for the Development of National Economy and Society of China. Policy targets on two five-year periods are presented and analyzed. Weights are determined by the quotient between the reference levels and target levels of a certain impact category.

Results and Discussion

Since the Tenth Five-year Plan put forward the overall objective to reduce the level of regional pollution by 2005, the weights for AP, EP and POCP for 2000-2005 are more than 1. By comparison between the Ninth Five-year and Tenth Five-year period, the results show that the weights obtained in this paper effectively represent Chinese political environmental priorities in different periods. For the weights derived from China's political targets for the overall period 1995-2005, the rank order of relative importance is ODP>AP>POCP>EP>GWP. They are recommended to the potential users for the broader disparity among the five categories. By comparison with the weights presented by the widespread EDIP method, the result shows that there's a big difference in the relative importance of ozone depletion and global warming.

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In conclusion, the weighting factors and rank order of impact categories determined in this study represent the characteristics of the big developing country. The derived weighting set can be helpful to LCA practices of products within the industrial systems of China.

     

How Political Connections Affect Corporate Environmental Performance: The Mediating Role of Green Subsidies

This study investigates the relationship between political connections and corporate environmental performance, and examines the role of government green subsidies on this relationship within the current Chinese context. Using data from publicly traded private manufacturing firms, empirical results show that politically connected firms are significantly more likely to obtain green subsidies than non-connected firms. Assisted by green subsidies, firms with political connections show better environmental performance than those without. Our findings reveal the mechanism by which corporate political connections influence environmental performance.     

Environmental Assessment of Single‐Walled Carbon Nanotube Processes

The environmental assessment of nanomanufacturing during the initial process design phase should lead to the development of competitive, safe, and environmentally responsible engineering and commercialization. Given the potential benefits and concerns regarding the use of single‐walled carbon nanotubes (SWNTs), three SWNT production processes have been investigated to assess their associated environmental impacts. These processes include arc ablation (arc), chemical vapor deposition (CVD), and high‐pressure carbon monoxide (HiPco). Without consideration of the currently unknown impacts of SWNT dispersion or other health impacts, life cycle assessment (LCA) methodology is used to analyze the environmental impact and provide a baseline for the environmental footprint of each manufacturing process. Although the technical attributes of the product resulting from each process may not be fully comparable, this study presents comparisons that show that the life cycle impacts are dominated by energy, specifically the electricity used in production. Under base case yield conditions, HiPco shows the lowest environmental impact, while the arc process has the lowest impact under best case yield conditions.     

Alternative Scenarios for Managing the Environmental Performance of a Service Sector Company

This article presents a scenario analysis for a life-cycle model of service sector companies. The model is based on six case companies and it is applied to test the influence of 32 management scenarios. The scenarios simulate feasible options for environmental management measures in companies, and the life-cycle assessment method is used to model their relevance in terms of the total environmental impact of the company. The study found that the bulk of tested scenarios had only a minor influence on the total environmental impact of the company. Some individual management scenarios, though, turned out to have a major influence on the organization's environmental performance. The scenarios with greatest influence were those related to the procurement of electricity, building energy consumption, commuting vehicle mix, space usage efficiency, and refurbishment periods of the building. All of these management scenarios had an influence of more than 10% on the environmental impact of the model organization.     

Evaluating Land-Use Impacts: Selection of Surface Area Metrics for Life-Cycle Assessment of Mining

Land use is an increasingly important component of sustainability evaluations, and numerous performance metrics have evolved to meet this need. The selection of appropriate land-use metrics for decision makers, however, remains an ongoing challenge. Additionally, life-cycle practitioners often struggle to provide meaningful impact assessment because of challenges associated with traditional land-use impact metrics. This article is intended to assist decision makers and life-cycle practitioners who wish to more effectively measure and evaluate one aspect of land use: surface area occupation. Existing performance metrics are discussed, and the specific circumstances under which each is appropriate are identified. Building on leading-edge research and analysis in the field of life-cycle impact assessment, a modified methodology for evaluating surface area occupation is proposed. This approach is demonstrated for a series of mining practices including three individual gold mines, a bauxite mine, and a copper mine. The specific data requirements and resulting equivalency factors for each mine are discussed. Results indicate that equivalency factors for gold (average of 700 acre-yr/ton) are expected to be several orders of magnitude higher than for either bauxite (0.004 acre-yr/ ton) or copper (0.03 acre-yr/ton). These dramatic differences in results demonstrate that equivalency factors are appropriate and necessary for including land-use impact potential as part of a life-cycle assessment that includes several different minerals or material requirements.     

Improving Environmental Performance Assessment: A Comparative Analysis of Weighting Methods Used to Evaluate Chemical Release Inventories

Managers, management scholars, regulators, nonprofit organizations, and the media are increasingly using emissions inventory data to measure organizations' environmental performance. Whereas some analysts use total mass emitted, others have applied one or more of the growing number of toxicity-weighting databases aimed at predicting the environmental and health impacts of emissions. Little research is available to guide analysts in selecting among these databases. This article compares 13 methods in terms of their sophistication, complexity, and comprehensiveness. Seven of these methods are then evaluated as to their usefulness in weighting emissions data from the U.S. Environmental Protection Agency's (U.S. EPA's) toxic release inventory, and three pair-wise comparisons are conducted. We recommend the U.S. EPA's Risk Screening Environmental Indicators for estimating impacts to human health. We recommend the Tool for the Reduction and Assessment of Chemical Impacts for estimating impacts to human health and the environment.     

Characterisation and Normalisation Factors for Life Cycle Impact Assessment Mined Abiotic Resources Categories in South Africa: The manufacturing of catalytic converter exhaust systems as a case study (10 pp)

Goal and Background Current Life Cycle Impact Assessment (LCIA) procedures have demonstrated certain limitations in the South African manufacturing industry. The aim of this paper is to propose new characterisation and normalisation factors for classified mined abiotic resource depletion categories in the South African context. These factors should reflect the importance of mined resources as they relate to region-specific resource depletion. The method can also be applied to determine global factors. Methods The reserve base (as in 2001) of the most commonly produced minerals in South Africa is used as basis to determine characterisation factors for a non-renewable mineral resources category. The average production of these minerals from 1991 to 2000 is compared to economically Demonstrated and Demonstrated Marginal Reserves (and not ultimate reserves) to obtain the characterisation factors in equivalence units, with platinum as the reference mineral. Similarly, for a non-renewable energy resources category, coal is used in South Africa as equivalent unit as it is the most important fossil fuel for the country. Crude oil and natural gas resources are currently obtained from reserves elsewhere in the world and characterisation factors are therefore determined using global resources and production levels. The normalisation factors are based on the total economic reserves of key South African minerals and world non-renewable energy resources respectively. A case study of the manufacturing of an exhaust system for a standard sedan is used to compare LCIA results for mined abiotic resource categories that are based on current LCIA factors and the new South African factors. Results and Discussion The South African LCIA procedure differs from current methods in that it shows the importance of other mined resources, i.e. iron ore and crude oil, relative to PGMs and coal for the manufacturing life cycle of the exhaust system. With respect to PGMs, the current characterisation factors are based on the concentrations of the metals in the ores and the ultimate reserves, which are erroneous with respect to the actual availability of the mineral resources and the depletion burden placed on these minerals is consequently too high. Conclusions The South African LCIA procedure for mined abiotic resources depletion shows the significance of choosing a method, which is inline with the current situation in the mining industry and its limitations. Recommendations and Outlook It is proposed to similarly investigate the impacts of the use of other natural resource groups. Water, specifically, must receive attention in the characterisation phase of LCIAs in South African LCAs.     

Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance

Previous empirical work suggests that firms with high environmental performance tend to be profitable, but questions persist about the nature of the relationship. Does stronger environmental performance really lead to better financial performance, or is the observed relationship the outcome of some other underlying firm attribute? Does it pay to have cleanrunning facilities or to have facilities in relatively clean industries? To explore these questions, we analyze 652 U.S. manufacturing firms over the time period 1987–1996. Although we find evidence of an association between lower pollution and higher financial valuation, we find that a firm's fixed characteristics and strategic position might cause this association. Our findings suggest that “When does it pay to be green?” may be a more important question than “Does it pay to be green?”     

Evaluating Environmental Performance of Pulp and Paper Manufacturing Using the Analytic Hierarchy Process and Life-Cycle Assessment

This article addresses the need for a structured and compre-hensive methodology for assessing the environmental perfor-mance of manufacturing processes. The analytic hierarchy pro-cess (AHP) is used as the basic framework for analyzing environmental impacts and improvement options following a streamlined life-cycle assessment (LCA) approach that is fo-cused on the manufacturing operation. The multicriteria de-cision analysis approach of the AHP is consistent with the LCA concept because the environmental factors can be hierarchi-cally structured into impacts and improvement options. Its po-tential as a valuation tool for impact and improvement assess-ment addresses both qualitative and quantitative issues in environmental decision making.
Through application to a pulp and paper manufacturing case study, the viability of the AHP for evaluating environmen-tal impacts and prioritizing process improvement options rela-tive to these impacts is demonstrated. AHP was used to pro-vide a quantitative tool for the design of a set of weighting factors for impact and improvement analyses.     

The Environmental Impacts of Reuse: A Review

The fear that human consumption is causing climate change, biodiversity loss, and mineral scarcity has recently prompted interest in reuse because of the intuitive belief that it reduces new production and waste. The environmental impacts of reuse have, however, received little attention—the benefits typically assumed rather than understood—and consequently the overall effects remain unclear. In this article, we structure the current work on the topic, reviewing the potential benefits and pitfalls described in the literature and providing a framework for future research. Many products’ use‐phase energy requirements are decreasing. The relative importance of the embodied impacts from initial production is therefore growing and the prominence of reuse as an abatement strategy is likely to increase in the future. Many examples are found in the literature of beneficial reuse of standardized, unpowered products and components, and repairing an item is always found to be less energy intensive than new production. However, reusing a product does not guarantee an environmental benefit. Attention must be paid to restoring and upgrading old product efficiencies, minimizing overspecification in the new application, and considering whether more efficient, new products exist that would be more suitable. Cheap, reused goods can allow many consumers access to products they would otherwise have been unable to afford. Though socially valuable, these sales, which may help minimize landfill in the short term, can represent additional consumption rather than a net environmental benefit compared to the status quo.     

Economic Development Matters: A Meta‐Regression Analysis on the Relation between Environmental Management and Financial Performance

Although the existing body of empirical literature on the relation between corporate environmental performance (CEP) and corporate financial performance (CFP) is continuously growing, results are still inconclusive about this fundamental question in industrial ecology. Comparisons are difficult because of various estimation methods as well as the overall heterogeneous and complex interaction between the two constructs, but especially because of country‐specific data sets. Consequently, we raise the question of whether regional differences are the driving force buried underneath the inconclusiveness. Therefore, the aim of this article is to explore this heterogeneity by aggregating 893 existing results from 142 empirical primary studies that are based on more than 750,000 firm‐year observations. Our findings suggest a convex impact of a country's economic development on the magnitude of the CEP‐CFP effect (i.e., the effect is positive in developing countries, disappears in emerging countries, and is again positive in highly developed countries). We also find that the overall positive relation strengthens for market‐based CFP measures and diminishes for countries with civil law systems, firms from the service sector, reactive environmental activities, and process‐based CEP measures. Further, several aspects of the examined data sample and the inclusion of relevant control variables explain heterogeneity in previous research results.     

Survey Insights into Weighting Environmental Damages: Influence of Context and Group

When one models impact pathways due to stressors that are caused by the provision of product systems, it results in indicators for environmental damages. These indicators are incommensurable and cannot be compared per se. For example, the statistical life years lost for a human population cannot necessarily be compared with the potentially affected fraction of species within an ecosystem. However, some decision makers who use life-cycle assessment (LCA) prefer a single index, because it facilitates interpretation better than a multi-indicator system. This requires a method for aggregating environmental damages of differing types, thereby confronting LCA with a valuation problem.
The article describes a nonmonetary approach to valuation in LCA that incorporates the findings of a survey among LCA practitioners and users. The survey focuses on the weighting of three safeguard subjects for Eco-indicator 99, a damage-oriented impact-assessment method: human health, ecosystem quality, and resources. Of particular interest here is what influence the context provided in the survey (framing) and an individual's characteristics have on his or her weighting of environmental damages. The results indicate that damages on the European level are easier to compare than damages on a micro level. Additionally, although only half of the survey participants could be classified unequivocally into one of three cultural perspectives, each perspective rated the damage categories presented to them significantly differently from the others. Our conclusions were that framing effects need to be more carefully considered in weighting procedures and that weighting preferences vary significantly according to a group's archetypical attitudes.     

Rare Earths from Mines to Metals: Comparing Environmental Impacts from China's Main Production Pathways

Over the past decade, China has supplied over 90% of global rare earths, and in doing so bore significant environmental burdens from processing its complex ores. In this study, we used life cycle assessment to quantify environmental impacts for producing 1 kilogram (kg) of 15 rare earth elements from each major production pathway. The scope of assessment included the largest rare earth oxide (REO) production chain in Bayan Obo, as well as lesser known production chains for bastnäsite in Sichuan and in‐situ leaching of kaolin clays in the Seven Southern Provinces of China. This was followed by assessing impacts from the three major metal refining processes: molten salt electrolysis, calciothermic reduction, and lanthanothermic reduction. Among 11 impact categories assessed, results were highest for human toxicity that ranged between 13.1 and 50.4 kg 1,4‐dichlorobenzene‐eq (equivalent)/kg of rare earth metal^?1, followed by eutrophication (0.04 to 1.26 kg phosphate‐eq/kg of rare earth metal^?1), abiotic depletion potential of fossil fuels (592 to 1,857 megajoules per kg of rare earth metal^?1), acidification (0.25 to 0.87 kg sulfur dioxide‐eq/kg of rare earth metal^?1), and global warming (39.1 to 109.6 kg carbon dioxide‐eq/kg of rare earth metal^?1) potentials. Regionally, impacts in Sichuan were lower across all key impact categories than in Bayan Obo: 32% lower for human toxicity, 67% lower for eutrophication, 58% lower for acidification, and 45% lower for global warming. A scenario analysis between the industry average and best available technologies revealed considerable potential to mitigate impacts across all production chains, particularly by improving waste treatment practices.     

Construction Matters: Comparing Environmental Impacts of Building Modular and Conventional Homes in the United States

Modular construction practices are used in many countries as an alternative to conventional on‐site construction for residential homes. While modular home construction has certain advantages in terms of material and time efficiency, it requires a different infrastructure than conventional home construction, and the overall environmental trade‐offs between the two methods have been unclear. This study uses life cycle assessment to quantify the environmental impacts of constructing a typical residential home using the two methods, based on data from several modular construction companies and conventional homebuilders. The study includes impacts from material production and transport, off‐site and on‐site energy use, worker transport, and waste management. For all categories considered, the average impacts of building the home are less for modular construction than for conventional construction, although these averages obscure significant variation among the individual projects and companies.