Purpose Assessing impacts of abiotic resource use has been a topic of persistent debate among life cycle impact assessment (LCIA) method developers and a source of confusion for life cycle assessment (LCA) practitioners considering the different interpretations of the safeguard subject for mineral resources and the resulting variety of LCIA methods to choose from. Based on the review and assessment of 27 existing LCIA methods, accomplished in the first part of this paper series (Sonderegger et al. 2020), this paper provides recommendations regarding the application-dependent use of existing methods and areas for future method development. Method Within the “global guidance for LCIA indicators and methods” project of the Life Cycle Initiative hosted by UN Environment, 62 members of the “task force mineral resources” representing different stakeholders discussed the strengths and limitations of existing LCIA methods and developed initial conclusions. These were used by a subgroup of eight members at the Pellston Workshop® held in Valencia, Spain, to derive recommendations on the application-dependent use and future development of impact assessment methods. Results and discussion First, the safeguard subject for mineral resources within the area of protection (AoP) natural resources was defined. Subsequently, seven key questions regarding the consequences of mineral resource use were formulated, grouped into “inside-out” related questions (i.e., current resource use leading to changes in opportunities for future users to use resources) and “outside-in” related questions (i.e., potential restrictions of resource availability for current resource users). Existing LCIA methods were assigned to these questions, and seven methods (ADPultimate reserves, SOPURR, LIME2endpoint, CEENE, ADPeconomic reserves, ESSENZ, and GeoPolRisk) are recommended for use in current LCA studies at different levels of recommendation. All 27 identified LCIA methods were tested on an LCA case study of an electric vehicle, and yielded divergent results due to their modeling of impact mechanisms that address different questions related to mineral resource use. Besides method-specific recommendations, we recommend that all methods increase the number of minerals covered, regularly update their characterization factors, and consider the inclusion of secondary resources and anthropogenic stocks. Furthermore, the concept of dissipative resource use should be defined and integrated in future method developments. Conclusion In an international consensus-finding process, the current challenges of assessing impacts of resource use in LCA have been addressed by defining the safeguard subject for mineral resources, formulating key questions related to this safeguard subject, recommending existing LCIA methods in relation to these questions, and highlighting areas for future method development.
Purpose The safeguard subject of the Area of Protection "natural Resources," particularly regarding mineral resources, has long been debated. Consequently, a variety of life cycle impact assessment methods based on different concepts are available. The Life Cycle Initiative, hosted by the UN Environment, established an expert task force on "Mineral Resources" to review existing methods (this article) and provide guidance for application-dependent use of the methods and recommendations for further methodological development (Berger et al. in Int J Life Cycle Assess, 2020). Methods Starting in 2017, the task force developed a white paper, which served as its main input to a SETAC Pellston Workshop® in June 2018, in which a sub-group of the task force members developed recommendations for assessing impacts of mineral resource use in LCA. This article, based mainly on the white paper and pre-workshop discussions, presents a thorough review of 27 different life cycle impact assessment methods for mineral resource use in the "natural resources" area of protection. The methods are categorized according to their basic impact mechanisms, described and compared, and assessed against a comprehensive set of criteria.
This paper presents a market-price-based method to value sub-soil resources in environmental Cost-Benefit Analysis and Life Cycle Assessment. The market price incorporates the privileged information of the market agents, explicitly or implicitly anticipating future applications of the resource, future backstop technologies, recycling potentials, the evolution of reserves and extraction costs. The market price is therefore considered as the best available integrated information reflecting the actual values of these parameters. Our method is based on the Hotelling rule and the fact that private agents discount future costs and benefits at a higher rate than society as a whole. In practice, the price of the last resource unit sold is calculated with the Hotelling rule using a market discount rate. Then, the price at depletion is retropolated with a social discount rate smaller than the market discount rate. The resulting corrected “socially optimal” price is higher than the market price. The method allows to calculate the social cost of resource exhaustion, which is applicable in Cost-Benefit Analysis and Life Cycle Assessment. The method is applied to mineral and fossil resources and the results are compared with other recent methods that seek to place a monetary value on resource depletion.
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