Integrated Environmental and Economic Assessment of Products and Processes

The eco-efficiency analysis method developed and used by the Öko-Institut analyzes different alternatives that fulfill a defined consumer need, from an environmental as well as an economic perspective.
Like life-cycle assessment (LCA), eco-efficiency analysis makes possible the setting of priorities in purchasing decisions or can be used to show optimization potentials in product development processes.
Eco-efficiency analysis builds upon two methods: LCA, according to ISO 14040 ff. (to assess the environmental aspects of products and processes), and life-cycle costing. Life-cycle costing results in a single figure—the total costs of ownership to one or several actors. The environmental impacts can be evaluated and aggregated as a single score or the impact category indicator results can be kept separate. In either case two single scores can be compared: the total environmental burden or the impact category indicator results, and the total costs of ownership of the alternatives under consideration.
The results can then be plotted in two-dimensional graphs that show the effectiveness of certain measures in environmental and economic terms. The efficiency is expressed as a numerical ratio of environmental savings to difference in costs.
Together with furnishing more detailed results and a discussion of additional benefits or potential barriers, eco-efficiency analysis broadens the basis for decision-making processes.