Life Cycle Assessment (LCA), Bottom-Up model (BU) and Computable - - PowerPoint PPT Presentation

Life Cycle Assessment (LCA), Bottom-Up model (BU) and Computable General Equilibrium (CGE) model LCA: Focused on one product and traces the environmental load occurred upstream and down stream in production / disposal. Good for calculating a perturbation effect of usage / preference change of the product Usually ignore the substitution effect among production factors, intermediate goods for production. Focused on the material chain cycle of good’s production and disposal. BU: The quantities to be produced /consumed are

• prescribed. Calculates the effect of improvement of

production technology, required amount of product and so on. The reduction efforts of energies / products are not reflect to the prescribed quantities to be produced

Life Cycle Assessment (LCA), Bottom-Up model (BU) and Computable General Equilibrium (CGE) model CGE: Focused on the mutual interaction on economic sectors, and calculate the interactive effects among technology improvement, change of consumer preference, economic policies. Focused on the financial /economic chain cycle of good’s production and consumption AIM/Material : Coupling of LCA and CGE strong-ness, the model describes environmental loads from the view point of material chain cycle and financial /economic chain cycle.

Energy and Material Chain Cycle

production sector household capital labor abroad market import export produced commodity (goods and bads)

energy intermediate

CO2 energy final demand CO2

pollution

pollution management

energy intermediate

CO2 recycle pollution

environmental capital and labor

LCA approach

production sector household capital labor abroad market import export produced commodity (goods and bads)

energy intermediate

CO2 CO2

pollution

pollution management

energy intermediate

CO2

environmental capital and labor

recycle pollution

Focused on one product

Bottom up approach

Focused on energy efficiency change mechanism and its effect

Household energy service prescribed Focused on household production efficiency change

capital labor abroad market import export produced commodity (goods and bads)

energy intermediate

CO2 energy final demand CO2

pollution

pollution management

energy intermediate

CO2

environmental capital and labor

environmental Industry/investment recycle pollution

AIM/Material

production sector household capital labor abroad market import export produced commodity (goods and bads)

energy intermediate

CO2 energy final demand CO2

pollution

pollution management

energy intermediate

CO2

environmental capital and labor

environmental Industry/investment recycle pollution

Summary

appr pproach cha charact cter eristics cs LC LCA Good f for es estimating ng t the ef he effect ect o

• f o
• ne p

ne product uct int ntroduct uction a n and nd r ret etrea eat t to/f /from s soci ciet ety, ef effect ect

• f cha

chang nge o e of a alter erna native p e product uction m n met etho hods. Good

• od f

for

• r c

com

• mparing e

environ

• nmental l

loa

• ads of
• f a

a product uct w with a h a s same s e sur urvice k ce kind nd/a /amount unt BU Easy t to a apply r reg egiona nal/na /nationa nal env environm nment ental policy cy, ea easy t to ha have co e cons nsistency ency w with eco h econo nomic plans

• ns. E

Easy t to ca calcul culate t e the ef he effect ect o

• f d

det etailed ed ener energy t techno echnology i improvem ement ent AIM/Material Good

• od a

at t to e

• estimate s

soc

• cial c

cos

• sts a

and s soc

• cial

benef enefits a and nd m mut utua ual i int nter eract ction o n of env environm nment ental a and nd eco econo nomic p c polici cies es, cl clea early taken a en acco ccount unt o

• f p

price cha ce chang nge ef e effect ects