Toward an Information Tool for Integrated Product Policy: Requirements for Data and Computation

Integrated product policy, according to the European Union, requires reliable data on the impact of consumer products along their life cycles. We argue that this necessarily requires the development of an information tool for hybrid analysis, combining aspects of life-cycle assessment and input-output analysis. A number of requirements in the development of such a hybrid information tool are identified, mainly concerning data and computational structure. For the former, some important points of attention are discussed, whereas for the latter, operational formulas are developed.     

Setting Priorities within Product-Oriented Environmental Policy

To focus Danish product‐oriented environmental policy, a study applying extended input‐output analysis has been performed, identifying the most important product groups from an environmental perspective. The environmental impacts are analyzed from three different perspectives—the supply perspective, the consumption perspective, and the process perspective—differing primarily in their system delimitation. The top ten environmentally most important product groups (out of 138 industry products and 98 final consumption groups) are listed for each of the three perspectives, using both total environmental impact and environmental impact intensity as ranking principles. The study covers all substances that contribute significantly to the environmental impact categories of global warming, ozone depletion, acidification, nutrient enrichment, photochemical ozone formation, ecotoxicity, human toxicity, and nature occupation. The differences in results between the three perspectives are elaborated and their policy relevance discussed. The top ten product groups account for a surprisingly large share of the total environmental impact of Danish production and consumption (up to 45%, depending upon the perspective). This implies that product‐oriented environmental policy may achieve large improvements by focusing on a rather small number of product groups. Both imported products and products produced for export in general cause more environmental impact than products produced in Denmark for the Danish market. Especially noticeable are the export of meat and ship transport. This leads to the recommendation to include specific policy measures targeting both foreign producers and foreign markets. Because of its relatively large input of labor, public consumption is found to have a much smaller environmental impact intensity than private consumption. The results confirm results of other similar studies, but are more detailed and have lower uncertainty, due to a number of improvements in data and methodology. A short presentation of the methodology is provided as background information, although this is not the main focus of this article.     

Environmental Impacts of Products: A Detailed Review of Studies

Environmental effects of economic activities are ultimately driven by consumption, via impacts of the production, use, and waste management phases of products and services ultimately consumed. Integrated product policy (IPP) addressing the life‐cycle impacts of products forms an innovative new generation of environmental policy. Yet this policy requires insight into the final consumption expenditures and related products that have the greatest life‐cycle environmental impacts. This review article brings together the conclusions of 11 studies that analyze the life‐cycle impacts of total societal consumption and the relative importance of different final consumption categories. This review addresses in general studies that were included in the project Environmental Impacts of Products (EIPRO) of the European Union (EU), which form the basis of this special issue. Unlike most studies done in the past 25 years on similar topics, the studies reviewed here covered a broad set of environmental impacts beyond just energy use or carbon dioxide (CO₂) emissions. The studies differed greatly in basic approach (extrapolating LCA data to impacts of consumption categories versus approaches based on environmentally extended input‐output (EEIO) tables), geographical region, disaggregation of final demand, data inventory used, and method of impact assessment. Nevertheless, across all studies a limited number of priorities emerged. The three main priorities, housing, transport, and food, are responsible for 70% of the environmental impacts in most categories, although covering only 55% of the final expenditure in the 25 countries that currently make up the EU. At a more detailed level, priorities are car and most probably air travel within transport, meat and dairy within food, and building structures, heating, and (electrical) energy‐using products within housing. Expenditures on clothing, communication, health care, and education are considerably less important. Given the very different approaches followed in each of the sources reviewed, this result hence must be regarded as extremely robust. Recommendations are given to harmonize and improve the methodological approaches of such analyses, for instance, with regard to modeling of imports, inclusion of capital goods, and making an explicit distinction between household and government expenditure.     

Product Environmental Life-Cycle Assessment Using Input-Output Techniques

Life-cycle assessment (LCA) facilitates a systems view in environmental evaluation of products, materials, and processes. Life-cycle assessment attempts to quantify environmental burdens over the entire life-cycle of a product from raw material extraction, manufacturing, and use to ultimate disposal. However, current methods for LCA suffer from problems of subjective boundary definition, inflexibility, high cost, data confidentiality, and aggregation.
This paper proposes alternative models to conduct quick, cost effective, and yet comprehensive life-cycle assessments. The core of the analytical model consists of the 498 sector economic input-output tables for the U.S. economy augmented with various sector-level environmental impact vectors. The environmental impacts covered include global warming, acidification, energy use, non-renewable ores consumption, eutrophication, conventional pollutant emissions and toxic releases to the environment. Alternative models are proposed for environmental assessment of individual products, processes, and life-cycle stages by selective disaggregation of aggregate input-output data or by creation of hypothetical new commodity sectors. To demonstrate the method, a case study comparing the life-cycle environmental performance of steel and plastic automobile fuel tank systems is presented.     

Environmental Impacts of Products:Policy Relevant Information and Data Challenges

The research and analysis presented in this special issue shows that the same limited number of consumption categories are consistently revealed to be responsible for the largest share of environmental impact: mobility (automobile and air transport), food (meat, poultry, fish, and dairy followed by plant‐based food), and residential energy use in the house (heating, cooling, electrical appliances, and lighting). It appears that differences in impact per euro between the product groupings are relatively limited, so it is essential to reduce the life‐cycle impacts of products as such, rather than to shift expenditures to less impact‐intensive product groupings. Furthermore, the effectiveness of expenditure on material products to improve quality of life leaves much room for improvement. Environmentally extended input‐output (EEIO) tables probably form, in this field, the most appropriate information support tool for priority setting, prospective assessment of options, scenario analysis, and monitoring. A clear benefit would result from integrating the input–output (IO) tables in the report to Eurostat of the 25 individual countries that make up the European Union (EU), with other officially available information on emissions and resources use, into a 60‐sector EEIO table for the EU. This, obviously, would be the first step toward more detailed tables. Three strategies are suggested to realize the additional, desirable detail of 150 sectors or more, each achievable at an increasing time horizon and with increasing effort: (1) developing further the current CEDA EU25 table; (2) building a truly European detailed input–output table accepting the restrictions of existing data gathering procedures; and (3) as (2), but developing new, dedicated data gathering and classification procedures. In all cases, a key issue is harmonizing classification systems for industry sectors, consumer expenditure categories, and product classifications (as in import/export statistics) in such a way that data sets may adequately be linked to input–output tables.     

Charging up Battery Recycling Policies: Extended Producer Responsibility for Single‐Use Batteries in the European Union,Canada, and the United States

Extended producer responsibility (EPR) policies have proven effective at raising consumer awareness, expanding waste collection infrastructure, and shifting costs of end‐of‐life (EOL) management from municipalities to stewardship organizations. Yet, such policies have been less successful in advancing waste management programs that ensure a net environmental benefit. This article analyzes how EPR policies for single‐use batteries in the European Union (EU), Canada, and the United States address the environmental costs and benefits of EOL management. Considering these EPR policies is instructive, because single‐use batteries have high collection costs and are of relatively low economic value for waste processors. Without deliberate planning, the environmental burdens of collecting and recycling such batteries may exceed the benefits. This article considers how EPR policies for single‐use batteries integrate performance requirements such as collection rates, recycling efficiencies, and best available techniques. It argues that for such policies to be effective, they need to be extended to address waste collection practices, the life cycle consequences of EOL management, and the quality of recovered materials. Such strategies are relevant to EPR policies for other products with marginal secondary value, including some textiles, plastics, and other types of electronic waste.     

Strategic Responses to Environmental Regulation in the U.K. Automotive Sector: The European Union End-of-Life Vehicle Directive and the Porter Hypothesis

As of 1 January 2006 all automotive OEMs (original equipment manufacturers) and component manufacturers operating within the European Union will need to comply with the End-of-Life Vehicle Directive (referred to hereafter as the EU ELV Directive). The EU ELV Directive compels all OEMs to take back and dismantle all motor vehicles for domestic use at the end of their useful lives. Each component part will then be either reused or recycled. To this end, the ultimate goal of the EU ELV Directive is that all motor vehicles for domestic use will have a reuse or recyclable content of 85% at the end of their useful lives, moving toward 95% by 2015. The burden of the EU ELV Directive falls on both the OEMs and their component manufacturers, forcing them to innovate and "design for disassembly." This being the case, it offers a unique real world example with which to test the Porter Hypothesis. Porter asserts that strict, correctly formulated environmental regulation can offer a firm secondary benefits through improved product design and the reduction of waste. This in turn allows the firm to offset the cost of compliance. Because the EU ELV Directive has been fashioned to force firms into a process of innovation and redesign, the magnitude of these so-called offsets can be judged. This article employs Rugman and Verbeke's 1998 strategic matrix of firm response to environmental regulation to examine qualitative details of the strategic response of automotive component manufacturers and OEMs in the United Kingdom to the demands of the directive to judge the volume of offsets generated. This analysis shows no support for the Porter Hypothesis and challenges the assumptions of Rugman and Verbeke's model.     

The Importance of Imports for Household Environmental Impacts

A promising way to reduce environmental impacts of consumer expenditure is through the encouragement of more sustainable consumption patterns. Consumers cause environmental impacts both directly, such as by fuel use in personal cars, and indirectly, by paying for the production of consumables. With increased international trade, the indirect environmental impacts are difficult to determine because a portion of the emissions occurs in different geographical regions. Many previous studies have unrealistically assumed that imports are produced using domestic production technology. For countries with diverging technology and energy mixes the likely errors are significant. This study applies a methodology that explicitly includes technology differences to the case of Norwegian households. It is found that a significant portion of pollution is embodied in Norwegian household imports. Further, a disproportionately large amount of pollution is embodied in imports from developing countries. Overall, as in previous studies, we find that mobility and food are most important in terms of household environmental impacts. By analyzing the imports in more detail we find that for some sectors the majority of emissions occur in foreign regions; in particular, this is true for food, business services, clothing, chemicals, furniture, cars, agriculture, textiles, and most manufactured products.     

Differences in Perception of Extended Producer Responsibility and Product Stewardship among Stakeholders: An International Questionnaire Survey and Statistical Analysis

Different perceptions of the concept of extended producer responsibility and product stewardship (EPR/PS) have tended to lead to prolonged policy disputes and have likely affected the design of EPR/PS policies. We therefore surveyed stakeholders’ perceptions of the concept of EPR/PS, including its aims, application, and rationales, and analyzed 376 responses with regression analysis and cluster analysis. The results clearly demonstrated the diversity in stakeholders’ perceptions and identified/confirmed several patterns between stakeholders’ perceptions and attributes. Concerning aims, our analysis showed that stakeholders from middle‐/low‐income countries placed more importance on proper treatment and waste reduction in EPR/PS policy, while those from Europe, North America, Japan, and the rest of Asia had different perceptions on seven aims of EPR/PS, especially for increasing collection and shifting responsibility to producers, and paid varying attention to upstream and downstream improvement (e.g., better product design and recycling, respectively). Our analysis also confirmed that respondents perceiving lack of capability of local governments regarding waste management advocated EPR/PS more and respondents positive about information acquisition put more importance on physical responsibility. The largest contributing variables to the perception of EPR/PS were 14 specific EPR/PS mechanisms/issues, suggesting that discussion about specific mechanisms of EPR/PS policy is a key if common and better understandings of the EPR/PS concept are to develop. The dominant rationale of EPR/PS agreed upon by the respondents was producers’ capability, but the concept of beneficiary bears was also supported by 58% of respondents, especially by national governments and North Americans. Finally, implications of the results for EPR/PS policy development were discussed.     

The Everyday Life Context of Increasing Energy Demands: Time Use Survey Data in a Decomposition Analysis

Industrial ecologists have modeled with precision the material foundations of industrial systems, but given less attention to the demand for products and the drivers of structural changes in these systems. This article suggests that time use data complement data on monetary expenditure and can be used to elucidate the everyday life context in which the changes in the economy take place. It builds upon the claim that goods are not direct sources of utility, but enter specific household activities as inputs. A second argument for the proposed approach is that it can be used to introduce and foster human agency in analyses of production systems. The article uses Finnish time use survey data, consumption expenditure data, and data on the sectoral energy intensities of financial output in the Finnish economy. First, a measure of the energy intensity of activities is derived by relating consumer time use and the required direct and indirect energy requirements. Second, the results include a decomposition of changes in the energy requirements of private consumption in Finland during the 1990s. It is shown that although the same activities on average require increasing energy inputs per unit of time, Finns have simultaneously changed the structure of their everyday life toward less energy-intensive activities.     

A Dynamic Model for Determining the Temporal Distribution of Environmental Burden

Abstract: In an article on the role of temporal information in life-cycle assessment in this journal, Field and colleagues argued that frequently it is not the single product but the "fleet" (or cohort) of products that "is the appropriate unit of analysis," and that in focusing on the fleet one "explicitly introduces the notion of time as a critical element of comparative life-cycle assessments. …" Major transitions, such as replacement of one fleet of products by an alternative fleet, correspond to a system in a transient rather than steady state, and explicit consideration of time is central to transient analysis.
One tool increasingly used as part of life-cycle assessment, economic input-output (EIO) analysis, at best deals with time in an implicit fashion. This article illustrates how the sequential interindustry model (SIM), a formulation of the EIOmodel that explicitly represents time, might be utilized in life-cycle assessment. SIM introduces this temporal component by explicitly accounting for the time required by production activities and the resulting sequencing of the inputs. This can be thought of as engineering rather than accounting information. The data demands of such a model are not likely to be met at present or at any time in the near future. Even so, simulation methods and the use of so-called synthetic data have a history of productive use in a number of fields, including the social sciences.
SIM also utilizes the contribution of Joshi on the application of the EIO model to environmental impact and the inclusion of the use as well as the production phases of a product in EIO analysis. The possibility of accounting for discounting of future events, with its impact on decision making, is also briefly discussed.     

An Input‐Output Model of Extended Producer Responsibility

Under an extended producer responsibility (EPR) system, when a producer delivers a product to the market it must also pay a takeback fee, which is used to cover the costs of end‐of‐life disposal. EPR systems are currently used in Europe and beyond to manage a variety of products, including packaging and used tires. In this article we develop an input‐output (IO) model that is able to assess the impacts of an EPR system, and is based on the waste IO (WIO) model. The WIO model is itself a hybrid‐unit model extension of the Leontief model that is able to capture the substitution effect between recycled/recovered material/energy from waste treatment and their non‐waste cognates. The resulting EPRIO model, besides the conventional direct and indirect effects of the Leontief model and the substitution effects of the WIO model, is able to capture the opportunity costs of financing the EPR system, and additionally requires the specification of an alternative waste management policy, with its own opportunity costs. The impact of an EPR policy is thus the difference between the impacts of the reference EPR and the alternative waste treament policies. The resulting model is illustrated with a simple example of a used tire management EPR system.     

Environmental Impacts of Consumption in the European Union:High-Resolution Input-Output Tables with Detailed Environmental Extensions

For developing product policy, insight into the environmental effects of products is required. But available life-cycle assessment studies (LCAs) are hardly comparable between different products and do not cover total consumption. Input-output analysis with environmental extensions (EEIOA) of full consumption is not available for the European Union. Available country studies have a low sector resolution and a limited number of environmental extensions. This study fills the gap between detailed LCA and low-resolution EEIOA, specifying the environmental effects of household consumption in the European Union, discerning nearly 500 sectors, while specifying a large number of environmental extensions. Added to the production sectors are a number of consumption activities with direct emissions, such as automobile driving, cooking and heating, and a number of postconsumer waste management sectors. The data for Europe have been constructed by using the sparse available and coarse economic and environmental data on European countries and adding technological detail mainly based on data from the United States.
A small number of products score high on environmental impact per Euro and also have a substantial share of overall consumer expenditure. Several meat and dairy products, household heating, and car driving thus have a large share of the total environmental impact. Due to their sales volume, however, products with a medium or low environmental score per Euro may also have a substantial impact. This is the case with bars and restaurants, clothing, residential construction, and even a service such as telecommunications. The limitations in real European data made heroic assumptions necessary to operationalize the model. One conclusion, therefore, is that provision of data in Europe urgently needs to be improved, at least to the level of sector detail currently available for the United States and Japan.     

India's E‐Waste Rules and Their Impact on E‐Waste Management Practices: A Case Study

India, like many other developed and developing countries, has adopted an extended producer responsibility (EPR) approach for electronic waste (e‐waste) management under its E‐waste (Management and Handling) Rules, 2011. Under these rules, producers have been made responsible for setting up collection centers of e‐waste and financing and organizing a system for environmentally sound management of e‐waste. In this article, we use the implementation of these rules in Ahmedabad in western India as a case study to conduct a critical analysis of the implementation of India's Rules. Interviews of main stakeholder groups, including a sample of regulated commercial establishments, regulatory agencies enforcing the Rules, informal actors involved in waste collection and handling, as well as publicly available information on the implementation constitute data for our case study. Our results indicate that while there has been an increase in the formal waste processing capacity after the implementation of the Rules, only 5% to 15% of the total waste generated is likely channeled through formal processing facilities. While the EPR regulation forced the producers to take action on a few relatively inexpensive aspects of the Rules, the collection and recycling system has not been made convenient for the consumers to deposit e‐waste in formal collection and recycling centers. Based on our findings, we argue that Indian EPR regulation should go beyond simple take‐back mandates and consider implementing other policy instruments such as a deposit‐refund system. An important implication for developing countries is the need for careful attention to instrument choice and design within EPR regulations.     

A Dynamic Life-Cycle Energy Model of Mobile Phone Take-back and Recycling

This paper reports the results of a life-cycle energy model of a pilot mobile phone "take-back" scheme carried out by the Cellular Phones Take-back Working Group of the European Trade Organisation for the Telecommunication and Professional Electronics Industry (ECTEL) in the United Kingdom (UK) and Sweden during 1997. Using data collected from the scheme, the model calculates a snapshot "energy balance" associated with mobile phone take-back for a variety of phone types and take-back scenarios in the year 1997. It also develops a time-series model for the UK, describing the environmental implications of different take-back scenarios in the future. Because of its emphasis on interactive, dynamic modeling techniques, the methodology developed for the life-cycle model has the potential for wide application in regulatory and industrial decision making.     

Comparative Analysis of Extended Producer Responsibility Policy in the United States and Canada

This article analyzes the policy choices and programmatic elements of extended producer responsibility (EPR) as implemented in the United States and Canada. The article traces the historical development of EPR in each country and defines common features of EPR in each nation. The U.S. states and the Canadian provinces have assumed the primary role, rather than the federal governments, for enacting producer responsibility requirements in their respective countries. However, the paths taken demonstrate several fundamental differences, including the prevalence of individual versus collective responsibility and the financing mechanisms implemented for EPR. Given the deepening experience with EPR and the breadth of its application to a widening array of products in the United States, the Canadian model for EPR is starting to receive more examination from policy makers in the United States, indicating that the policy and programmatic differences between the two nations may eventually be narrowing. The comparative policy analysis is illustrated through the lens of EPR regulatory efforts for waste electronics, with particular profiles of the programs in the State of Minnesota and Province of Ontario. Both approaches broadly reflect many of the policy considerations and governance and programmatic themes that dominate EPR programs in each country. Finally, the article offers recommendations for collaborative work between the United States and Canada to explore consistency between programs and other complementary strategies to support producer responsibility activities.     

Feasibility of Using Radio Frequency Identification to Facilitate Individual Producer Responsibility for Waste Electrical and Electronic Equipment

Regulatory measures that hold producers accountable for their products at end of life are increasingly common. Some of these measures aim at generating incentives for producers to design products that will be easier and cheaper to recover at the postconsumer stage. However, the allocation of recovery costs to individual producers, which can facilitate realization of the goals of these policies, is hindered by the practical barrier of identification and/or sorting of the products in the waste stream. Technologies such as radio frequency identification (RFID) can be used for brand or model recognition in order to overcome this obstacle. This article assesses the read rate of RFID technology (i.e., the number of successful retrievals of RFID tag data [“reads”] in a given sample of tagged products) and the potential role of RFID tags in the management of waste electrical and electronic equipment (WEEE) at current levels of technical development. We present the results of RFID trials conducted at a civic amenity site in the city of Limerick, Ireland. The experiment was performed for fixed distances up to 2 meters on different material substrates. In the case of white goods (i.e., large household appliances), a 100% read rate was achieved using an RFID handheld reader. High read rates were also achieved for mixed WEEE. For a handheld scan of a steel cage containing mixed WEEE, read rates varied from 50% to 73% depending on the ultrahigh frequency (UHF) metal mount tag employed and the relative positioning of the tags within the cage. These results confirm that from a technical standpoint, RFID can achieve much greater brand or model identification than has been considered feasible up to now, and thus has a role to play in creating a system that allocates recovery costs to individual producers.     

Development of a Consumer Environmental Index and Results for Washington State Consumers

Consumer choices affect sustainability of societal systems, and state governments increasingly are interested in environmental impacts of consumption. This article describes a Consumer Environmental Index (CEI) to track the impacts of product purchase, use, and disposal and applies this initial CEI to Washington State in the United States. CEI has modules for product and service use, upstream resource extraction and manufacturing, and downstream disposal. CEI uses hybrid life cycle assessment (LCA) methods, combined with purchasing data from the Bureau of Labor Statistics (BLS) Consumer Expenditure Survey. For Washington State, when human health and ecosystem toxicity impact was assessed with the TRACI/CalTOX methods, weighted aggregate and per consumer impacts in all categories increased during the 6 years from 2000 to 2005. For impacts per real dollar spent, only the CEI's climate change component declined, falling nearly 7% between 2000 and 2005. Purchasing details in the BLS expenditure surveys enable the CEI to track environmental impact details on 700 individual categories of products and services. For example, sugar, motor oil, and wood heat appear to have serious environmental impacts, whereas recycling of paper, cardboard, and food and beverage container discards can be as effective at reducing greenhouse gas emissions as cutting vehicle fuel usage nearly in half. Such results may serve to increase understanding of environmentally effective actions to reduce climate, human health, and ecosystem impacts of consumption.     

Strategies for Meeting EU End-of-Life Vehicle Reuse/Recovery Targets

Disposal of end-of-life vehicles (ELVs) is a relatively new focus of the European policy community. Technical requirements for car design and minimum reuse and recovery rates for end-of-life vehicles are the subject of a recent European Union directive on ELVs. This directive is expected to induce changes in the infrastructure required for ELV processing, and presents a substantial challenge to maintaining such an infrastructure as economically viable.
This paper assesses current and emerging ELV recycling technologies, in order to provide guidelines for the development of future ELV recycling strategies. Emphasis is given to technologies dedicated to automobile shredder residue (ASR) recovery, as an alternative/complement to more labor-intensive dismantling activities. The ultimate goal is to develop a vision of the type of ASR processing technology that could emerge in the future.
The analysis is based on a model developed to simulate ELV processing infrastructures, and shredding data are taken from full-scale experiments. The results obtained show that ASR mechanical separation and recycling technologies may enable more extensive recycling and contribute to achieving European Union recycling targets, and can thus be considered as far more promising than technologies based on energy recovery.     

With a Little Help from EPR?: Technological Change and Innovation in the Norwegian Plastic Packaging and Electronics Sectors

In this article we discuss the interplay between extended producer responsibility (EPR) and technological change and innovation (TCI) in Norway. We ask whether Norwegian EPR policy has an effect on TCI and, if so, whether it makes any difference how the EPR policies are designed. By carrying out a comparative study between the plastic packaging (PP) sector and electrical and electronic (EE) sector in Norway, we conclude that there is a correlation between Norwegian EPR policy and TCI, but the causality is rather weak. EPR has an effect on downstream activities through increased recycling and indirectly through institutional innovation and learning. It does not, however, make a significant difference how the policies are designed, because they are considered similar by a majority of actors contributing financially to the EPR schemes. As for technological change and innovation upstream, the role of Norwegian EPR policies in the observed trends is not significant. Other factors such as the EPR-based Restriction on Hazardous Substances (RoHS) Directive promulgated by the European Union (EE sector) and the need for competitiveness (PP sector) seem far more important. In order to make collective EPR policies more powerful in inducing technological change and innovation, decision-makers should consider more specific measures that directly address the core businesses of the producers.