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 produced commodity (goods and bads) pollution abroad management pollution recycle CO 2 import export production energy market sector intermediate environmental CO 2 capital and labor energy intermediate CO 2 capital labor energy household final demand pollution

LCA approach produced commodity (goods and bads) pollution abroad management pollution recycle CO 2 import export production energy market sector intermediate environmental CO 2 capital and labor energy intermediate CO 2 capital labor household Focused on one product pollution

Bottom up approach produced commodity (goods and bads) pollution abroad management pollution recycle CO 2 import Focused on energy export efficiency change energy market mechanism and its intermediate effect environmental CO 2 environmental capital and labor Industry/investment energy intermediate CO 2 capital labor Household energy service prescribed energy Focused on household pollution final demand production efficiency change

AIM/Material produced commodity (goods and bads) pollution abroad management pollution recycle CO 2 import export production energy market sector intermediate environmental CO 2 environmental capital and labor Industry/investment energy intermediate CO 2 capital labor energy household final demand pollution

Summary appr pproach cha charact cter eristics cs LC LCA Good f for es estimating ng t the ef he effect ect o of o one 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 of cha chang nge o e of a alter erna native p e product uction m n met etho hods. Good ood f for or c com omparing e environ onmental l loa oads of of 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 of d det etailed ed ener energy t techno echnology i improvem ement ent AIM/Material Good ood a at t to e o estimate s soc ocial c cos osts a and s soc ocial 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 of p price cha ce chang nge ef e effect ects