EIO-LCA Case Studies

1. EIO-LCA Case Studies Scott Matthews Civil and Environmental Engineering Carnegie Mellon University

2. EIO-LCA Software • Internet version http://www.eiolca.net/ • About 1 million users to date • About 1,500 registered users • update notices • other benefits • First LCA tool completely free on Internet in full version (not a ‘demo’)

3. Paper vs. Plastic Cups: Comparison of Two Studies Hocking, M. B. (1991), “Paper versus Polystyrene: A Complex Choice.” Science, Vol. 251, February 1, pp. 504-505. Lave, L. B., E. Cobas, C. Hendrickson and F. C. McMichael, “Using Input-Output Analysis to Estimate Economy-Wide Discharges,” Environmental Science and Technology, 29(9), pp. 153-161, September 1995.

4. Example: CDs vs. Paper • Conference proceedings: switch from paper to CDs • New: $3 per CD ($1500 for 500 CDs) • Old: 200 pages per person (300 people) • Double-sided • 60,000 pages @ $0.05/page = $3,000 • Production only

5. Economic Effects - 2 options Paper CDs

6. Some Environmental Effects

7. Analysis • CDs: Win-win scenario • Indirect effects much larger than direct • Small direct effects within industry • Proves supply chain management is critical for corporate pollution prevention efforts • Need to identify sources of effects • Detailed analysis can show “hot spots”

8. Using EIO-LCA to Improve Life Cycle Analysis • You are a pharmaceutical manufacturer • Need to do an LCA of main drug product • You can’t include everything; what is in and what is out? • Drawing boundaries is an appropriate simplifying step - but it is an art not a shortcut • Are you including/excluding the right parts?

9. Product Comparisons • Need to compare equivalent designs - benefits equal • Manufacturing, O&M, end-of-life costs • Service life/durability/longevity (obsolescence, technological change) • Valuing environmental burdens (Full Cost Accounting) • Planning period, discount rate • Discounted, annualized costs

10. Illustrative Example • To make your life easier, you focus on your processes’ top 10 ‘direct inputs’ • Could get this from product manager, accounting, other departments • Assume that your primary inputs are the primary sources of impacts for LCA • This is a common boundary assumption

11. Chemicals Plastics Electricity Paperboard/ Boxes Paper Trucking Printing Computer Services Telephone Services Refined Petroleum (e.g. gas/diesel) Top ‘Direct’ Inputs for Drugs

12. Sector Econ. ($) Drugs $150,000 Wholesale trade $90,200 Advertising $75,000 Industrial chemicals $45,000 Miscellaneous plastics $30,000 Real estate mgmt. $21,000 … … Accounting & auditing $20,000 Legal services $18,000 Electric utilities $16,000 Repair & maintenance $16,000 Paperboard containers $15,000 Paper mills $14,500 Trucking and courier $14,000 Actual “Top Ten” Economic Effects (incl. Supply Chain) “per million dollars of output” Your ‘direct’ top ten list would have ignored 6 of the actual top ten supply chain sectors (processes) for making drugs.

13. What’s Missing? • Would have only considered local (direct) impacts of purchases • i.e., the items your firm bought • Would have completely ignored the ‘supply chain effects’ in the industry • i.e. for electricity, would have only considered local use, not systemwide use

14. Greenhouse Gas Sources(Total Supply Chain, MT CO2 Equiv.) Total Local/Direct Total all sectors 626 306 (49%) Electric services (utilities) 219 96 (44%) Drugs 196 176 (90%) Industrial chemicals 49 23 (47%) Trucking and courier serv. 24 7 (29%) Paper & paperboard mills 19 0.1 (0.5%) Petroleum refining 6 1 (15%) Paperboard boxes 2 1 (50%) Plastics Products 1 1 (100%)

15. Your initial boundary would have missed 50+% of greenhouse gases There are significant emissions From the support services within the firm and also across supply chain Overall View of Drug Manufacturing Business GWP 219 306

16. Lessons Learned • Your perception of ‘what matters’ is biased by local factors • Overestimates dependence on these items • Underestimates supply chain effects • Our perceptions of ‘process inputs’ usually are goods not services • Services are not environmentally benign! • Use EIO-LCA to help you frame your LCA problems and set your boundaries (screening) • Potentially as a starting point for conventional LCA

17. Cement production Reinforced concrete product Electricity Coal mining Lime Iron ore mining Reinforced Concrete Product Aggregates mining Recycling Concrete production Chemical additives Reinforcing steel production Recycling End-of-life Landfilling Transportation involved

18. Simplified Process Model Input Requirements for a $2 Reinforced Concrete Product ($1 concrete and $1 steel)

19. Total Requirements Table from EIO-LCA for Inputs of a Reinforced Concrete Product

20. steel $1.17 concrete $1.01 cement $0.20 electricity $0.15 trucking services $0.13 sand and gravel $0.12 chemicals $0.08 coal mining $0.07 iron ore mining $0.04 lime $0.005 wholesale trade $0.10 banking $0.02 advertising $0.02 maintenance $0.02 computer services $0.01 eating places $0.008 air transportation $0.008 hotels $0.007 construction machines $0.004 paper $0.004 aluminum $0.003 plastics $0.003 postal services $0.003 fertilizers $0.001 meat $0.0003 Inputs for a $2 Reinforced Concrete Product

21. RCRA Hazardous Waste Generators for $150,000 of Reinforced Concrete Using the Simplified Process Model

22. Top 10 RCRA Hazardous Waste Generators for a $150,000 of Reinforced Concrete Using EIO-LCA