Life-cycle assessment (LCA) is a method for evaluating the environmental impacts of products holistically, including direct and supply chain impacts. The current LCA methodologies and the standards by the International Organization for Standardization (ISO) impose practical difficulties for drawing system boundaries; decisions on inclusion or exclusion of processes in an analysis (the cutoff criteria) are typically not made on a scientific basis. In particular, the requirement of deciding which processes could be excluded from the inventory can be rather difficult to meet because many excluded processes have often never been assessed by the practitioner, and therefore, their negligibility cannot be guaranteed. LCA studies utilizing economic input-output analysis have shown that, in practice, excluded processes can contribute as much to the product system under study as included processes; thus, the subjective determination of the system boundary may lead to invalid results. System boundaries in LCA are discussed herein with particular attention to outlining hybrid approaches as methods for resolving the boundary selection problem in LCA. An input-output model can be used to describe at least a part of a product system, and an ISO-compatible system boundary selection procedure can be designed by applying hybrid input-output-assisted approaches. There are several hybrid input-output analysis-based LCA methods that can be implemented in practice for broadening system boundary and also for ISO compliance.
A In order to achieve equitable reduction targets, international trade has to be taken into account when assessing nations' responsibility for abating climate change. Especially for open economies such as Denmark, greenhouse gases embodied in internationally traded commodities can have a considerable influence on the national 'greenhouse gas responsibility'. We set up a five-region input-output model including Denmark, Germany, Sweden and Norway in order to calculate CO 2 multipliers and trade balances. We investigate multidirectional feedback between these countries, and hence the error inherent in a single-region input-output model. We also examine the effect of aggregation on the model results. In the case of Denmark, an 11 Mt CO 2 trade surplus resulting from a single-region model turns into balance when multidirectional trade is considered. Moreover, aggregated models are likely to result in significant errors. Therefore, both the type and the degree of aggregation used for modelling CO 2 responsibilities could have a major bearing in international negotiations.
a b s t r a c tWind power has a strong position at the Danish electricity market, mainly caused by high feed-in tariffs in the 1990s. Investments in new wind-power installations on land, however, have declined dramatically after the Danish electricity market was liberalised in 1999. First, the paper describes how policy measures directed towards wind power have been redesigned to match the liberalised market. Then, we estimate the impact of the redesigned tariffs on the electricity prices. Finally, we assess whether the new tariffs make an incentive to invest in wind power. The paper concludes that the new tariffs not by itself make evidence for the actual Danish recession in new wind-power installations after the electricity reform. The main causes could include a combination of problems in spatial planning, high risk aversion of new wind turbine investors and perhaps more favourable support schemes in other countries.
SummaryInput-output modeling is a useful tool for tracing environmental impacts of consumption. Because it includes impacts originating from production layers of infinite order (capturing the entire economy), input-output modeling is highly relevant for studies operating in a life-cycle context. In this article we show how the input-output approach can be used to enumerate the problem of sustainable consumption. Based on a literature survey including research done by the authors we present measures of the emissions of carbon dioxide at different spatial levels: nation, city, and household. Further, we take more environmental effects into account and introduce the concept of environmental efficiency by combining inputoutput modeling and data envelopment analysis. Finally, we discuss the policy relevance of the different measures. The article demonstrates that input-output modeling has a wide range of life-cycle oriented applications when combined with other data sources such as detailed trade statistics, foreign input-output and environmental statistics, and household expenditure data.
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