Environmental Life Cycle Costing and Sustainability: Insights from Pollution Abatement and Resource Recovery in Wastewater Treatment

The relationship between environmental life cycle costing (ELCC) and sustainability was explored using two detailed wastewater case studies. The case studies were selected to increase the tension between existing market values and values for sustainability; the first case study considered incremental change to an existing plant and the second considered a paradigm shift in wastewater treatment. Pollution control provided the greatest cost savings for the first case study and provided a “win‐win” result—meeting existing standards and saving money. However, benefits for pollution control beyond current standards were not captured, which emphasized the role of standards to internalize as well as limit the values considered in ELCC. In the second case study, the value of water had the potential to change the focus of wastewater design from pollution abatement to resource recovery. However, social acceptance of recovered water and market access for resources created large risk for investment. The ELCC was also sensitive to the discount rate which limited longer‐term considerations. Other sustainability values such as scarcity and ecological thresholds were not captured. The ELCC code of practice suggests including such costs if likely in the foreseeable future; defining these values may also clarify the role of ELCC to evaluate sustainability over the life cycle.     

Implementing Individual Producer Responsibility for Waste Electrical and Electronic Equipment through Improved Financing

Under the European Union (EU) Waste Electrical and Electronics Equipment (WEEE) Directive, producers are responsible for financing the recycling of their products at end of life. A key intention of such extended producer responsibility (EPR) legislation is to provide economic incentives for producers to develop products that are easier to treat and recycle at end of life. Recent research has shown, however, that the implementation of EPR for WEEE has so far failed in this respect. Current WEEE systems calculate their prices according to simple mass‐based allocation of costs to producers, based on broad collection categories containing a mixture of different product types and brands. This article outlines two alternative approaches, which instead calculate charges for products sold by producers by classifying them according to their eventual end‐of‐life treatment requirements and cost. Worked examples indicate that these methods provide both effective and efficient frameworks for financing WEEE, potentially delivering financial incentives to producers substantial enough to affect their potential profitability and, as a likely consequence, the decisions relating to the design of their products. In particular they fulfill three important criteria required by the WEEE Directive: they can financially reward improved design, allocate costs of historic waste proportionately (on the basis of tonnes of new products sold), and provide sufficient financial guarantees against future waste costs and liabilities. They are also relatively practical for implementation because they are based solely on cost allocation and financing. Further research and investigation would be worthwhile to test and verify this approach using real‐world data and under various scenarios.     

Implications of emissions timing on the cost‐effectiveness of greenhouse gas mitigation strategies: application to forest bioenergy systems

Conventional cost‐effectiveness calculations ignore the implications of greenhouse gas (GHG) emissions timing and thus may not properly inform decision‐makers in the efficient allocation of resources to mitigate climate change. To begin to address this disconnect with climate change science, we modify the conventional cost‐effectiveness approach to account for emissions timing. GHG emissions flows occurring over time are translated into an ‘Equivalent Present Emission’ based on radiative forcing, enabling a comparison of system costs and emissions on a consistent present time basis. We apply this ‘Present Cost‐Effectiveness’ method to case studies of biomass‐based electricity generation (biomass co‐firing with coal, biomass cogeneration) to evaluate implications of forest carbon trade‐offs on the cost‐effectiveness of emission reductions. Bioenergy production from forest biomass can reduce forest carbon stocks, an immediate emissions source that contributes to atmospheric greenhouse gases. Forest carbon impacts thereby lessen emission reductions in the near‐term relative to the assumption of biomass ‘carbon neutrality’, resulting in higher costs of emission reductions when emissions timing is considered. In contrast, conventional cost‐effectiveness approaches implicitly evaluate strategies over an infinite analytical time horizon, underestimating nearer term emissions reduction costs and failing to identify pathways that can most efficiently contribute to climate change mitigation objectives over shorter time spans (e.g. up to 100 years). While providing only a simple representation of the climate change implications of emissions timing, the Present Cost‐Effectiveness method provides a straightforward approach to assessing the cost‐effectiveness of emission reductions associated with any climate change mitigation strategy where future GHG reductions require significant initial capital investment or increase near‐term emissions. Timing is a critical factor in determining the attractiveness of any investment; accounting for emissions timing can better inform decisions related to the merit of alternative resource uses to meet near‐, mid‐, and long‐term climate change mitigation objectives.     

基于生命周期方法的生活垃圾资源化利用系统生态效率分析

我国生活垃圾产量大但处理能力不足,产生多种环境危害,对其资源化利用能够缓解环境压力并回收资源。为探讨生活垃圾资源化利用策略,综合生命周期评价与生命周期成本分析方法,建立生态效率模型。以天津市为例,分析和比较焚烧发电、卫生填埋-填埋气发电、与堆肥+卫生填埋3种典型生活垃圾资源化利用情景的生态效率。结果表明,堆肥+卫生填埋情景具有潜在最优生态效率;全球变暖对总环境影响贡献最大,而投资成本对经济影响贡献最大。考虑天津市生活垃圾管理现状,建议鼓励发展生活垃圾干湿组分分离及厨余垃圾堆肥的资源化利用策略。     

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.     

基于物质流分析的废纸回收利用体系生态成本研究

废弃物回收利用在一定程度上对缓解资源和环境危机起到积极的作用,已经成为可持续发展的重要举措,但生产过程中消耗的资源、能源,排放的污染物同样也会对自然环境产生负面影响。为解决此问题,以废纸回收利用体系为例,基于物质流分析方法构建了生态成本核算模型,为废弃物回收利用体系优化提供基础。在对生态成本相关研究归纳总结的基础上,定义了生态成本的概念,界定了生态成本的研究内容,并分析基于物质流核算生态成本的可行性。生态成本是对生态负荷的价值化,主要分为资源耗减成本、污染产生和环境保护成本以及生态环境损害成本3部分。污染产生和环境保护成本可以通过将总成本按比例分配给正、负产品的方式求得,资源耗减成本和环境损害成本借助LIME方法核算,总生态成本是回收利用体系内部各项生态成本的总和。生态成本核算是评价生态负荷的重要手段,在废纸回收利用体系物质流动图的基础上,分析各生产流程生态成本的构成情况。提出的生态成本核算模型不仅适用于废纸回收利用体系,其他废弃物也同样适用。通过生态成本的核算,寻找到对生态环境影响较大的工序、流程,为废弃物回收利用体系经济与环境的双赢提供理论与实践指导。     

Will Pollution Taxes Improve Joint Ecological and Economic Efficiency of Thermal Power Industry in China?: A DEA‐Based Materials Balance Approach

Previous studies of the efficiency of Chinese electricity industry have been limited in providing insights regarding policy implications of inherent trade‐offs of economic and environmental outcomes. This study proposes a modified data envelopment analysis method combined with materials balance principle to estimate ecological and cost efficiency in the Chinese electricity industry. The economic cost and ecological impact of energy input reallocation strategies for improving efficiency are identified. The possible impacts of pollution taxes upon the levels of sulfur dioxide (SO₂) emissions are assessed. Estimation results show that (1) both energy input costs and SO₂ could be reduced through increasing technical efficiency. (2) It is possible to adjust energy input mix to attain ecological efficiency, and, correspondingly, SO₂ would be reduced by 15%. (3) The Chinese electricity industry would reduce its unit cost by 9% if optimal ecological efficiency is attained and reduce its unit pollution by 13% if optimal cost efficiency is attained, implying that there are positive ecological synergy effects associated with energy cost savings and positive economic synergy effects associated with SO₂ pollution reductions. (4) Estimated shadow costs of SO₂ reduction are very high, suggesting that, in the short term, the Chinese electricity industry should pursue cost efficiency instead of ecological efficiency, since alternative abatement activities are less costly and some of the abatement cost could be further offset by energy input cost savings. (5) There would be no significant difference between the impacts of pollution discharge fees and pollution taxes on SO₂ emissions levels because of the relatively low pollution tax rate.     

Environmental Implications and Costs of Municipal Solid Waste‐Derived Ethylene

Carbon recycling, in which organic waste is recycled into chemical feedstock for material production, may provide benefits in resource efficiency and a more cyclical economy—but may also create “trade‐offs” in increased impacts elsewhere. We investigate the system‐wide environmental burdens and cost associated with carbon recycling routes capable of converting municipal solid waste (MSW) by gasification and Fischer‐Tropsch synthesis into ethylene. Results are compared to business‐as‐usual (BAU) cases in which ethylene is derived from fossil resources and waste is either landfilled with methane and energy recovery (BAU#1) or incinerated (BAU#2) with energy recovery. Monte Carlo and sensitivity analysis is used to assess uncertainties of the results. Results indicate that carbon recycling may lead to a reduction in cumulative energy demand (CED), total material requirement (TMR), and acidification, when compared to BAU#1. Global warming potential is found to be similar or slightly lower than BAU#1 and BAU#2. In comparison to BAU#2, carbon recycling results in higher CED, TMR, acidification, and smog potential, mainly as a result of larger (fossil‐based) energy offsets from energy recovery. However, if a renewable power mix (envisioned for the future) is assumed to be offset, BAU#2 impacts may be similar or higher than carbon recycling routes. Production cost per kilogram (kg) MSW‐derived ethylene range between US$1.85 and US$2.06 (Jan 2011 US$). This compares to US$1.17 per kg for fossil‐based ethylene. Waste‐derived ethylene breaks even with its fossil‐based counterpart at a tipping fee of roughly US$42 per metric ton of waste feedstock.     

Comparison of Plastic Packaging Waste Management Options: Feedstock Recycling versus Energy Recovery in Germany

Plastics recycling, especially as prescribed by the German Ordinance on Packaging Waste (Verpackungsverordnung), is a conspicuous example of closing material loops on a large scale. In Germany, an industry‐financed system (Duales System Deutschland) was established in 1991 to collect and recycle packaging waste from households. To cope with mixed plastics, various “feedstock‐recycling” processes were developed. We discuss the environmental benefits and the cost‐benefit ratio of the system relative to municipal solid waste (MSW) incineration, based on previously published life‐cycle assessment (LCA) studies. Included is a first‐time investigation of energy recovery in all German incinerators, the optimization opportunities, the impact on energy production and substitution processes, an estimation of the costs, and a cost‐benefit assessment. In an LCA, the total environmental impact of MSW incineration is mainly determined by the energy recovery ratio, which was found on average to reach 39% in current German incineration plants. Due to low revenues from additional energy generation, it is not cost‐effective to optimize the plants energetically. Energy from plastic incineration substitutes for a specific mixture of electric base‐load power, district heating, and process steam generation. Any additional energy from waste incineration will replace, in the long term, mainly natural gas, rather than coal. Incineration of plastic is compared with feedstock recycling methods in different scenarios. In all scenarios, the incineration of plastic leads to an increase of CO2 emissions compared to landfill, whereas feedstock recycling reduces CO2 emissions and saves energy resources. The costs of waste incineration are assumed to decrease by about 30% in the medium term. Today, the calculated costs of CO2 reduction in feedstock recycling are very high, but are ex‐pected to decline in the near future. Relative to incineration, the costs for conserving energy via feedstock recycling are 50% higher, but this gap will close in the near future if automatic sorting and processing are implemented in Germany.     

Informing Packaging Design Decisions at Toyota Motor Sales Using Life Cycle Assessment and Costing

Throughout their life cycle stages—material production, package manufacture, distribution, end-of-life management—packaging systems consume natural resources and energy, generate waste, and emit pollutants. Each of these stages also carries a financial cost. Motivated by a desire to decrease environmental burdens while reducing financial costs associated with the packaging of accessory and service parts, Toyota Motor Sales (TMS) partnered with the Donald Bren School of Environmental Science & Management to build a life cycle assessment and costing tool to support packaging design decisions. The resulting Environmental Packaging Impact Calculator (EPIC) provides comprehensive life cycle assessment (LCA) and life cycle costing (LCC). It allows packaging designers to identify environmentally and economically preferable packaging systems in daily decision-making. EPIC's parameterized process flow model allows users to assess many different packaging systems using a single model. Its input/output interface is designed for users without preexisting knowledge of LCA theory or practice and calculates results based on relatively few input data. The main motivation behind this environmental design tool is to provide relevant information to those individuals who are in the best position to reduce life cycle impacts and costs from TMS's packaging and distribution systems.     

Alternative operation models for using a feed‐in terminal as a part of the forest chip supply system for a CHP plant

The fuel supply of forest chips has to adapt to the annual fluctuations of power and heat generation. This creates inefficiency and unbalances the capacity utilization of the fuel supply fleet in the direct fuel supplies from roadside storages to power and heat generation. Terminals can offer an alternative approach for the fleet management of fuel supplies in terms of smoothing the unbalanced fleet use towards more even year‐round operations. The aim of the study was to compare the supply costs of a conventional direct forest chip supply to an alternative fuel supply with the use of a feed‐in terminal using the discrete‐event simulation method. The influences of the terminal location, terminal investment cost, outbound terminal transport method, terminal truck utilization and quality changes of terminal‐stored forest chips for the fuel supply cost were studied in the case environment. By introducing a feed‐in terminal and a shuttle truck for the transports of terminal‐stored forest chips, the total supply cost was 1.4% higher than the direct fuel supply scenario. In terminal scenarios, the supply costs increased 1–2% if the cost of the terminal investment increased 30%, the distance to the terminal increased from 5 to 30 km or the total annual use of a terminal truck decreased 1500 h. Moreover, a 1 per cent point per month increase in the dry matter loss of terminal‐stored chips increased the total supply cost 1%. The study revealed that with the relatively low additional cost, the feed‐in terminal can be introduced to the conventional forest chip supply. Cost compensation can be gained through the higher annual use of a fuel supply fleet and more secured fuel supply to power plants by decreasing the need for supplement fuel, which can be more expensive at a time of the highest fuel demand.     

SEVERE COSTS OF REPRODUCTION PERSIST IN ANOLIS LIZARDS DESPITE THE EVOLUTION OF A SINGLE‐EGG CLUTCH

A central tenet of life‐history theory is that investment in reproduction compromises survival. We tested for costs of reproduction in wild brown anoles (Anolis sagrei) by eliminating reproductive investment via surgical ovariectomy and/or removal of oviductal eggs. Anoles are unusual among lizards in that females lay single‐egg clutches at frequent intervals throughout a lengthy reproductive season. This evolutionary reduction in clutch size is thought to decrease the physical burden of reproduction, but our results show that even a single egg significantly impairs stamina and sprint speed. Reproductive females also suffered a reduction in growth, suggesting that the cumulative energetic cost of successive clutches constrains the allocation of energy to other important functions. Finally, in each of two separate years, elimination of reproductive investment increased breeding‐season survival by 56%, overwinter survival by 96%, and interannual survival by 200% relative to reproductive controls. This extreme fitness cost of reproduction may reflect a combination of intrinsic (i.e., reduced allocation of energy to maintenance) and extrinsic (i.e., increased susceptibility to predators) sources of mortality. Our results provide clear experimental support for a central tenet of life‐history theory and show that costs of reproduction persist in anoles despite the evolution of a single‐egg clutch.     

Life Cycle Management of Municipal Solid Waste

Life-cycle assessment concepts and methods are currently being applied to evaluate integrated municipal solid waste management strategies throughout the world. The Research Triangle Institute and the U.S. Environmental Protection Agency are working to develop a computer-based decision support tool to evaluate integrated municipal solid waste management strategies in the United States. The waste management unit processes included in this tool are waste collection, transfer stations, recovery, compost, combustion, and landfill. Additional unit processes included are electrical energy production, transportation, and remanufacturing. The process models include methodologies for environmental and cost analysis. The environmental methodology calculates life cycle inventory type data for the different unit processes. The cost methodology calculates annualized construction and equipment capital costs and operating costs per ton processed at the facility. The resulting environmental and cost parameters are allocated to individual components of the waste stream by process specific allocation methodologies. All of this information is implemented into the decision support tool to provide a life-cycle management evaluation of integrated municipal solid waste management strategies.     

Avoiding Co-Product Allocation in Life-Cycle Assessment

Abstract: In a life‐cycle assessment (LCA) involving only one of several products from the same process, how are the resource consumption and the emissions associated with this process to be partitioned and distributed over these co‐products? This is the central question in co‐product allocation, which has been one of the most controversial issues in the development of the methodology for life‐cycle assessment, as it may significantly influence or even determine the result of the assessments. In this article, it is shown that in prospective life‐cycle assessments, co‐product allocation can always be avoided by system expansion. Through a number of examples, it is demonstrated how system expansion is performed, with special emphasis on issues that earlier have been a focus of the allocation debate, such as joint production (e.g., of chlorine and sodium hydroxide, zinc and heavy metals, and electricity and heat), the handling of “near‐to‐waste” by‐products, processes simultaneously supplying services to multiple product systems, and credits for material recycling and downcycling. It is shown that all the different co‐product situations can be covered by the same theoretical model and the same practical procedure, and that it is also possible to include the traditional co‐product allocation as a special case of the presented procedure. The uncertainty aspects of the presented procedure are discussed. A comparison is made with the procedure of ISO 14041, “Life‐cycle assessment—Goal and scope definition and inventory analysis,” the international standard.     

Does more mean less? The value of information for conservation planning under sea level rise

Many studies have explored the benefits of adopting more sophisticated modelling techniques or spatial data in terms of our ability to accurately predict ecosystem responses to global change. However, we currently know little about whether the improved predictions will actually lead to better conservation outcomes once the costs of gaining improved models or data are accounted for. This severely limits our ability to make strategic decisions for adaptation to global pressures, particularly in landscapes subject to dynamic change such as the coastal zone. In such landscapes, the global phenomenon of sea level rise is a critical consideration for preserving biodiversity. Here, we address this issue in the context of making decisions about where to locate a reserve system to preserve coastal biodiversity with a limited budget. Specifically, we determined the cost‐effectiveness of investing in high‐resolution elevation data and process‐based models for predicting wetland shifts in a coastal region of South East Queensland, Australia. We evaluated the resulting priority areas for reserve selection to quantify the cost‐effectiveness of investment in better quantifying biological and physical processes. We show that, in this case, it is considerably more cost effective to use a process‐based model and high‐resolution elevation data, even if this requires a substantial proportion of the project budget to be expended (up to 99% in one instance). The less accurate model and data set failed to identify areas of high conservation value, reducing the cost‐effectiveness of the resultant conservation plan. This suggests that when developing conservation plans in areas where sea level rise threatens biodiversity, investing in high‐resolution elevation data and process‐based models to predict shifts in coastal ecosystems may be highly cost effective. A future research priority is to determine how this cost‐effectiveness varies among different regions across the globe.     

Implementing Extended Producer Responsibility Legislation

The goal of this article is to contribute to the understanding of how the multiple, and sometimes conflicting, stakeholder perspectives and prevailing conditions (economic, geographic, etc.) in the implementation locality shape extended producer responsibility (EPR) “on the ground.” We provide an in‐depth examination of the implementation dimension of EPR in a specific case study by examining concrete activities at the operational front of the collection and recycling system, and probing the varying stakeholder preferences that have driven a specific system to its status quo. To this end, we conduct a detailed case study of the Washington State EPR implementation for electronic waste. We provide an overview of various stakeholder perspectives and their implications for the attainment of EPR policy objectives in practice. These findings shed light on the intrinsic complexity of EPR implementation. We conclude with recommendations on how to achieve effective and efficient EPR implementation, including improving design incentives, incorporating reuse and refurbishing, expanding product scope, managing downstream material flows, and promoting operational efficiency via fair cost allocation design.     

Consumer‐driven nutrient dynamics in urban environments: the stoichiometry of human diets and waste management

Studies in both terrestrial and aquatic ecosystems have documented the potential importance of consumers on ecosystem‐level nutrient dynamics. This is especially true when aggregations of organisms create biogeochemical hotspots through nutrient consumption, assimilation, and remineralization via excretion and egestion. Here, we focused on aggregations of humans in cities to examine how diet and waste management interact to drive nitrogen‐ (N) and phosphorus‐ (P) fluxes into nutrient pollution, inert forms, and nutrient recycling. We constructed six diet patterns (five US‐based and one developing nation) to examine N‐ and P‐consumption and excretion, and explored their implications for human health. Next, we constructed six waste‐management patterns (three US and three for developing nations) to model how decisions at household and city scales determine the eventual fates of N and P. When compared to the US Recommended Daily Intake, all US diet patterns exceeded N and P requirements. Other than the “enriched CO₂ environment scenario” diet, the typical US omnivore had the greatest excess (37% N and 62% P). Notably, P from food additives could account for all of the excess P found in US omnivore and vegetarian diets. Across all waste‐management approaches, a greater proportion of P was stored or recycled (0 to > 100% more P than N) and a greater proportion of N was released as effluent (20 to > 100% more N than P) resulting in pollution enriched with N and a recycling stream enriched with P. In developing nations, 60% of N and 50% of P from excreta entered the environment as pollution because of a lack of sanitation infrastructure. Our study demonstrates a novel addition to modeling sustainable scenarios for urban N‐ and P‐budgets by linking human diets and waste management through socio‐ecological systems.     

Return on environment

The Return on Environment (ROE) is developed, and tested, as an objective indicator to support the results of Life Cycle Assessments. It is based on the observation that a ratio of life cycle costs incurred throughout the extraction, transport, manufacturing, use and disposal stages, to the selling price, appears to scale linearly with a quantitative impact assessment. ROE is therefore a normalization method which permits comparison of new assessments with existing data, even from products with quite different characteristics. It can, alternatively, be applied to estimate either the life cycle cost, or quantify environmental impact, provided the other is known. Like its economic cousin, the return on investment, cases studied typically have ROEs in over the range of 2–20%. ROE is intended as a preliminary estimation method, akin to engineering costing, which has a precision of +-30%. As such, it can be used to rapidly determine if a more detailed cost assessment can be justified and, if so, where the efforts should be oriented. ROE is a measurable life cycle index intended to render LCAs more suitable for decision making. A further benefit that ROE provides is the guidance to a life cycle practitioner, or product development team, to assess if sufficient data has been collected, or if costs and impacts have been over or under-estimated. It has advantages over specific ecoindicators, such as manufacturing energy or waste emissions, which are both product specific and subjective. The Return on Environment also serves as a systematic index for reporting improvements or as a relative environmental rating.     

Sex differences in the effects of juvenile and adult diet on age‐dependent reproductive effort

Sexual selection should cause sex differences in patterns of resource allocation. When current and future reproductive effort trade off, variation in resource acquisition might further cause sex differences in age‐dependent investment, or in sensitivity to changes in resource availability over time. However, the nature and prevalence of sex differences in age‐dependent investment remain unclear. We manipulated resource acquisition at juvenile and adult stages in decorated crickets, Gryllodes sigillatus, and assessed effects on sex‐specific allocation to age‐dependent reproductive effort (calling in males, fecundity in females) and longevity. We predicted that the resource and time demands of egg production would result in relatively consistent female strategies across treatments, whereas male investment should depend sharply on diet. Contrary to expectations, female age‐dependent reproductive effort diverged substantially across treatments, with resource‐limited females showing much lower and later investment in reproduction; the highest fecundity was associated with intermediate lifespans. In contrast, long‐lived males always signalled more than short‐lived males, and male age‐dependent reproductive effort did not depend on diet. We found consistently positive covariance between male reproductive effort and lifespan, whereas diet altered this covariance in females, revealing sex differences in the benefits of allocation to longevity. Our results support sex‐specific selection on allocation patterns, but also suggest a simpler alternative: males may use social feedback to make allocation decisions and preferentially store resources as energetic reserves in its absence. Increased calling effort with age therefore could be caused by gradual resource accumulation, heightened mortality risk over time, and a lack of feedback from available mates.