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Integrated Environmental and Economic Assessment of Products and Processes

Author

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  • Ina Rüdenauer
  • Carl‐Otto Gensch
  • Rainer Grießhammer
  • Dirk Bunke

Abstract

The eco‐efficiency analysis method developed and used by the Öko‐Institut analyzes different alternatives that fulfill a defined consumer need, from an environmental as well as an economic perspective. Like life‐cycle assessment (LCA), eco‐efficiency analysis makes possible the setting of priorities in purchasing decisions or can be used to show optimization potentials in product development processes. Eco‐efficiency analysis builds upon two methods: LCA, according to ISO 14040 ff. (to assess the environmental aspects of products and processes), and life‐cycle costing. Life‐cycle costing results in a single figure—the total costs of ownership to one or several actors. The environmental impacts can be evaluated and aggregated as a single score or the impact category indicator results can be kept separate. In either case two single scores can be compared: the total environmental burden or the impact category indicator results, and the total costs of ownership of the alternatives under consideration. The results can then be plotted in two‐dimensional graphs that show the effectiveness of certain measures in environmental and economic terms. The efficiency is expressed as a numerical ratio of environmental savings to difference in costs. Together with furnishing more detailed results and a discussion of additional benefits or potential barriers, eco‐efficiency analysis broadens the basis for decision‐making processes.

Suggested Citation

  • Ina Rüdenauer & Carl‐Otto Gensch & Rainer Grießhammer & Dirk Bunke, 2005. "Integrated Environmental and Economic Assessment of Products and Processes," Journal of Industrial Ecology, Yale University, vol. 9(4), pages 105-116, October.
    • Handle: RePEc:bla:inecol:v:9:y:2005:i:4:p:105-116
    DOI: 10.1162/108819805775248061
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    Cited by:

    1. Rita Mura & Francesca Vicentini & Ludovico Maria Botti & Maria Vincenza Chiriacò, 2024. "Achieving the circular economy through environmental policies: Packaging strategies for more sustainable business models in the wine industry," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1497-1514, February.
    2. Kytzia, Susanne & Walz, Ariane & Wegmann, Mattia, 2011. "How can tourism use land more efficiently? A model-based approach to land-use efficiency for tourist destinations," Tourism Management, Elsevier, vol. 32(3), pages 629-640.
    3. Baharam Roy & Peter Kleine-Möllhoff & Antoine Dalibard, 2022. "Superheated Steam Torrefaction of Biomass Residues with Valorisation of Platform Chemicals Part—2: Economic Assessment and Commercialisation Opportunities," Sustainability, MDPI, vol. 14(4), pages 1-21, February.
    4. Peng, Hongsong & Zhang, Jinhe & Lu, Lin & Tang, Guorong & Yan, Bingjin & Xiao, Xiao & Han, Ya, 2017. "Eco-efficiency and its determinants at a tourism destination: A case study of Huangshan National Park, China," Tourism Management, Elsevier, vol. 60(C), pages 201-211.
    5. Mura, Rita & Vicentini, Francesca & Botti, Ludovico Maria & Chiriacò, Maria Vincenza, 2023. "Economic and environmental outcomes of a sustainable and circular approach: Case study of an Italian wine-producing firm," Journal of Business Research, Elsevier, vol. 154(C).
    6. Marileena Koskela & Jarmo Vehmas, 2012. "Defining Eco‐efficiency: A Case Study on the Finnish Forest Industry," Business Strategy and the Environment, Wiley Blackwell, vol. 21(8), pages 546-566, December.

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