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Input-output-based life cycle assessment of the wood construction sector in the Walloon region (Belgium) Vanessa R. Zeller, Alinor Richard, Nelle Thyssen, Marc Degrez 05/11/2014 Introduction Walloon region (Belgium) Regional

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Input-output-based life cycle assessment of the wood construction sector in the Walloon region (Belgium)

Vanessa R. Zeller, Aliénor Richard, Nelle Thyssen, Marc Degrez 05/11/2014

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Introduction

Project framework

  • Evaluate and reduce environmental

impacts of the wood construction sector in the Walloon region

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Method

  • Process LCA at product and building

level

  • IO-based LCA at sector/regional level

Walloon region (Belgium)

  • Regional decision-making is particularly important in BE
  • Regional differences in the economic structure
  • Energy intensity of Walloon region is 20 % higher than

the Belgian and 60 % higher than the EU average*

  • Building /construction sector has high environmental

impacts

*State of the Environment Directorate, and SPW - DGO3 - DEMNA - DEE. 2012. Key Environmental Indicators for Wallonia in 2012 (KEIW 2012). Status and Outlook Reports.

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Introduction

Input-output based life cycle assessment (LCA)

  • Environmentally extended input-output analysis (EEIOA)
  • Evaluation of production and consumption activities at high economic and geographic

level

  • IO-based LCA approaches in the 90s (Hertwich 2005)
  • Focus on household environmental impacts
  • Energy and CO2 emissions

3

Recent developments

  • New databases at global level available: as EXIOBASE (Tukker et al. 2013), WIOD

(Dietzenbacher et al. 2013) and GTAP-MRIO (Andrew and Peters 2013)

  • Progress in the modelling of interregional trade
  • E. G. Hertwich, “Life Cycle Approaches to Sustainable Consumption: A Critical Review,” Environ. Sci. Technol., vol. 39, no. 13, pp. 4673–4684, 2005.
  • A. Tukker et al. “Exiopol – Development and Illustrative Analyses of a Detailed Global Mr Ee Sut/Iot,” Econ. Syst. Res., vol. 25, no. 1, pp. 50–70, 2013.
  • E. Dietzenbacher et al., “The Construction of World Input–Output Tables in the Wiod Project,” Econ. Syst. Res., vol. 25, no. 1, pp. 71–98, 2013.
  • R. M. Andrew and G. P. Peters, “A Multi-Region Input–Output Table Based on the Global Trade Analysis Project Database (gtap-Mrio),” Econ. Syst. Res., vol.

25, no. 1, pp. 99–121, 2013.

  • → Models at subnational scale are hardly available
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Method - overview

4 (3) Input-output analysis 𝑦 = (𝐽 − 𝑎)−1𝑧 𝑓 = 𝐶(𝐽 − 𝑎)−1𝑧 (4) Impact assessment (2) Development of environmentally extended input-output tables Inventory results

  • Emissions into air, soil and water
  • Resource use (energy, minerals,

land use)

  • Added value, employment

(6) Scenario analysis

  • Studying improvements
  • Consumption scenarios
  • Technology scenarios

(1) Data collection

  • Economic data: SUT
  • Environmental data
  • Regional, EU and RoW

Development of the model

  • Analysis of production (118

sectors)

  • Analysis of consumption

Modelling trade

Analyses/Application

→Priority setting environmental policy (5) Baseline

→Support decision-making

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Method - overview

5 (3) Input-output analysis 𝑦 = (𝐽 − 𝑎)−1𝑧 𝑓 = 𝐶(𝐽 − 𝑎)−1𝑧 (4) Impact assessment (2) Development of environmentally extended input-output tables Inventory results

  • Emissions into air, soil and water
  • Resource use (energy, minerals,

land use)

  • Added value, employment

(6) Scenario analysis

  • Studying improvements
  • Consumption scenarios
  • Technology scenarios

(1) Data collection

  • Economic data: SUT
  • Environmental data
  • Regional, EU and RoW

Development of the model

  • Analysis of production (118

sectors)

  • Analysis of consumption

Modelling trade

Analyses/Application

→Priority setting environmental policy (5) Baseline

→Support decision-making

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Method - data

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Economic data

  • SUT for 3 Belgian regions, at basic price, million € (2003, 2007, 2011)

Use table

Walloon region, 2003 (M€)

Supply table

Walloon region, 2003 (M€) (1) Data collection

  • Economic data: SUT
  • Environmental data
  • Regional, EU and RoW

Environmental data

  • Air emission and energy use accounts for 3 Belgian regions

Avonds, Luc. 2008. Evaluation d’un cadre entrées-sorties régional pour la Belgique. Planning & Working Papers Working Paper 18-08. Bureau fédérale du Plan.

Products Economic activities

NACE 01-05 NACE 10-45 NACE 50-95 Total

  • Intern. imports Regional imports Total products

CPA 01-05 1.922 5 50 1.977 1.132 67 3.176 CPA 10-45 35 43.964 1.955 45.954 32.387 5.255 83.596 CPA 50-95 3 1.625 68.419 70.047 5.049 11.391 86.487 Total economic activity 1.960 45.594 70.424 117.978 38.568 16.713 173.259 NACE 01-05 NACE 10-45 NACE 50-95 Total Households Fixed capital formation Exports Total products CPA 01-05 99 1.054 122 1.275 654 37 1.209 3.175 CPA 10-45 664 20.209 7.665 28.538 12.000 8.637 34.419 83.594 CPA 50-95 378 10.027 18.707 29.112 44.947 1.843 10.584 86.486 Total 1.141 31.290 26.494 58.925 57.601 10.517 46.212 173.255 Net taxes 20 111 1.413 1.544 5.010 1.268 59 7.881 Gross value added 798 14.192 42.517 57.507 Total economic activity 1.959 45.593 70.424 117.976 CH4 (t) 92.010 8.983 9.593 110.586 3.728 114.314 N2O (t) 7.920 3.142 1.157 12.219 471 12.690 CO2 (t) 361.253 27.892.832 6.757.857 35.011.943 11.356.350 46.368.293

Emissions

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Method - data treatment

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  • Disaggregation of air emission and energy use account

(2) Development of environmentally extended input-output tables Z = (U − V′OD)V′D

−1 Z= Input-output table OD= Off-diagonals D= Diagonal entries

  • Fixed capital formation →creation of an investment

matrix

  • S. Suh, B. Weidema, J. H. Schmidt, and R. Heijungs, “Generalized Make and Use Framework for Allocation in Life Cycle Assessment,” J. Ind. Ecol., vol. 14, no. 2,
  • pp. 335–353, Mar. 2010.
  • Treatment of co-

products: by-product- technology model

NACE 01-05 NACE 10-45 NACE 50-95 Total Households Fixed capital formation Exports Total products CPA 01-05 99 1.054 122 1.275 654 37 1.209 3.175 CPA 10-45 664 20.209 7.665 28.538 12.000 8.637 34.419 83.594 CPA 50-95 378 10.027 18.707 29.112 44.947 1.843 10.584 86.486 Total 1.141 31.290 26.494 58.925 57.601 10.517 46.212 173.255 Net taxes 20 111 1.413 1.544 5.010 1.268 59 7.881 Gross value added 798 14.192 42.517 57.507 Total economic activity 1.959 45.593 70.424 117.976 CH4 (t) 92.010 8.983 9.593 110.586 3.728 114.314 N2O (t) 7.920 3.142 1.157 12.219 471 12.690 CO2 (t) 361.253 27.892.832 6.757.857 35.011.943 11.356.350 46.368.293 NACE 01-05 NACE 10-45 NACE 50-95 Total

  • Intern. imports Regional imports Total products

CPA 01-05 1.922 5 50 1.977 1.132 67 3.176 CPA 10-45 35 43.964 1.955 45.954 32.387 5.255 83.596 CPA 50-95 3 1.625 68.419 70.047 5.049 11.391 86.487 Total economic activity 1.960 45.594 70.424 117.978 38.568 16.713 173.259

Supply table (V’) Use table (U)

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Method

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(3) Input-output analysis

𝑦 = (𝐽 − 𝑎)−1𝑧 𝑓 = 𝐶(𝐽 − Z)−1𝑧

CPA 01-05 CPA 10-45 CPA 50-95 CPA 01-05 0,05 0,02 0,00 CPA 10-45 0,33 0,46 0,08 CPA 50-95 0,20 0,19 0,27 CH (t) 47,87 0,20 0,14 CPA 01-05 CPA 10-45 CPA 50-95 CPA 01-05 1,07 0,05 0,01 CPA 10-45 0,72 1,96 0,23 CPA 50-95 0,48 0,53 1,44

Emission matrix (B) Input-output table (Z)

  • Specify the final demand vector y
  • E.g. the total production of wood construction

products

  • All products consumed in Walloon region

(4) Impact assessment

  • Characterisation factors according to

CML 2 baseline 2000 methodology (April 2013)

CH4 (t) 47,87 0,20 0,14 N2O (t) 4,12 0,07 0,02 CO2 (t) 187,96 634,45 98,77

Leontief inverse (I-Z)-1

x = Total demand e= Environmental intervention B= environmental intervention matrix

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Preliminary results

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Inventory results

Air emission kg/M€ Air emission kg/M€ NH3 48 NO2 1.669 CO2 397.906 NMVOC 1873 CO 2763 PM 10 167 N2O 103 PM 2.5 143 CH4 329 SO2 516 Global warming potential (100 y.) 436872 kg CO2-eq./ M€ Human toxicity 2312 kg 1.4-DB-eq./ M€ Photochemical

  • xidation

148 kg C2H4-eq./ M€ Acidification 1530 kg SO2-eq./ M€ Eutrophication 262 kg PO4-eq./ M€

Impact assessment

Contribution analysis (%) for global warming potential of wood building products produced in Walloon region

For the wood construction sector of the Walloon region in million € (2007)

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Preliminary results

500 1000 1500 2000 2500 3000

Global warming potential (t CO2-eq./M€)

Iron, steel Wood products Clay building materials, bricks, cement, concrete

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Discussion

Limitations

  • Incomplete environmental and economic data
  • Simplified approach for investments and distribution of environmental

interventions to sectors

  • Domestic technology assumption
  • Use phase and end-of life are not included (they are modelled as separate

sectors)

  • No cut-offs, inputs such as services and capital goods are included
  • Identification of hot-spots for global warming potential

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Conclusions

  • With IO-based LCA at the regional (subnational) level can be addressed
  • Availability of data
  • → Regional comparisons
  • With IO-based data it is possible to link regional production/consumption

with international supply chains

  • But multiregional assessments are data intensive
  • Compatibility issues
  • Additional information to process-LCA, no substitution
  • Evaluate each sector within an economic system
  • Large scale scenarios

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Contact: Vanessa Zeller vzeller@ulb.ac.be Project information: www.enecobois.be

Thank you for your attention