IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i9p4870-d543955.html
   My bibliography  Save this article

The Commodity Life Cycle Costing Indicator. An Economic Measure of Natural Resource Use in the Life Cycle

Author

Listed:
  • Giulio Mela

    (Ricerca sul Sistema Energetico (RSE), 20134 Milan, Italy)

  • Maria Leonor Carvalho

    (Ricerca sul Sistema Energetico (RSE), 20134 Milan, Italy)

  • Andrea Temporelli

    (Ricerca sul Sistema Energetico (RSE), 20134 Milan, Italy)

  • Pierpaolo Girardi

    (Ricerca sul Sistema Energetico (RSE), 20134 Milan, Italy)

Abstract

This study defines a methodology for the development of an economic indicator of natural resource use to be applied in the framework of the Life Cycle Assessment (LCA) methodology to integrate the assessment of the environmental performances of products or processes during their life-cycle. The indicator developed-called Commodity Life Cycle Costing (or C-LCC)-is based on market prices, therefore incorporating information from both the demand and supply sides. Monte Carlo analysis is used to take price volatility into account. Alternative versions of the indicator, based on open-source data or calculated considering European Union’s critical raw materials only, are also developed. The study also provides a comparison between the C-LCC indicator and ReCiPe’s Mineral and Fossil Resource Depletion indicators and applies the proposed methodology to several types of batteries for stationary energy storage.

Suggested Citation

  • Giulio Mela & Maria Leonor Carvalho & Andrea Temporelli & Pierpaolo Girardi, 2021. "The Commodity Life Cycle Costing Indicator. An Economic Measure of Natural Resource Use in the Life Cycle," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4870-:d:543955
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/9/4870/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/9/4870/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maria Leonor Carvalho & Andrea Temporelli & Pierpaolo Girardi, 2021. "Life Cycle Assessment of Stationary Storage Systems within the Italian Electric Network," Energies, MDPI, vol. 14(8), pages 1-19, April.
    2. David S. Jacks, 2019. "From boom to bust: a typology of real commodity prices in the long run," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(2), pages 201-220, May.
    3. József Popp & Judit Oláh & Mária Farkas Fekete & Zoltán Lakner & Domicián Máté, 2018. "The Relationship Between Prices of Various Metals, Oil and Scarcity," Energies, MDPI, vol. 11(9), pages 1-19, September.
    4. Matthias Finkbeiner & Erwin M. Schau & Annekatrin Lehmann & Marzia Traverso, 2010. "Towards Life Cycle Sustainability Assessment," Sustainability, MDPI, vol. 2(10), pages 1-14, October.
    5. Joost Vogtländer & David Peck & Dorota Kurowicka, 2019. "The Eco-Costs of Material Scarcity, a Resource Indicator for LCA, Derived from a Statistical Analysis on Excessive Price Peaks," Sustainability, MDPI, vol. 11(8), pages 1-20, April.
    6. Krautkraemer, Jeffrey A., 2005. "Economics of Natural Resource Scarcity: The State of the Debate," Discussion Papers 10562, Resources for the Future.
    7. Krautkraemer, Jeffrey, 2005. "Economics of Natural Resource Scarcity: The State of the Debate," RFF Working Paper Series dp-05-14, Resources for the Future.
    8. Alessia Gargiulo & Maria Leonor Carvalho & Pierpaolo Girardi, 2020. "Life Cycle Assessment of Italian Electricity Scenarios to 2030," Energies, MDPI, vol. 13(15), pages 1-16, July.
    9. Eskinder D. Gemechu & Christoph Helbig & Guido Sonnemann & Andrea Thorenz & Axel Tuma, 2016. "Import-based Indicator for the Geopolitical Supply Risk of Raw Materials in Life Cycle Sustainability Assessments," Journal of Industrial Ecology, Yale University, vol. 20(1), pages 154-165, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julian Gaus & Sven Wehking & Andreas H. Glas & Michael Eßig, 2022. "Economic Sustainability by Using Life Cycle Cost Information in the Buying Center: Insights from the Public Sector," Sustainability, MDPI, vol. 14(3), pages 1-28, February.
    2. Maria Leonor Carvalho & Maria Anna Cusenza & Giulio Mela & Andrea Temporelli & Irene Quinzeni & Pierpaolo Girardi, 2023. "LCA and C-LCC Indicator as Tools for Sodium-Ion Batteries’ Eco-Design," Energies, MDPI, vol. 16(17), pages 1-20, August.
    3. Wang, Haoliang & Li, Jingwen, 2024. "Does oil, gas, and mineral rents reduce amid rising environmental policy stringency? Mediating role of financial development in G11 countries," Resources Policy, Elsevier, vol. 91(C).
    4. Ullah, Sami & Luo, Rundong & Nadeem, Muhammad & Cifuentes-Faura, Javier, 2023. "Advancing sustainable growth and energy transition in the United States through the lens of green energy innovations, natural resources and environmental policy," Resources Policy, Elsevier, vol. 85(PA).
    5. Maria Leonor Carvalho & Giulio Mela & Andrea Temporelli & Elisabetta Brivio & Pierpaolo Girardi, 2022. "Sodium-Ion Batteries with Ti 1 Al 1 TiC 1.85 MXene as Negative Electrode: Life Cycle Assessment and Life Critical Resource Use Analysis," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    6. Manigandan, Palanisamy & Alam, Md Shabbir & Murshed, Muntasir & Ozturk, Ilhan & Altuntas, Sumeyya & Alam, Mohammad Mahtab, 2024. "Promoting sustainable economic growth through natural resources management, green innovations, environmental policy deployment, and financial development: Fresh evidence from India," Resources Policy, Elsevier, vol. 90(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Leonor Carvalho & Giulio Mela & Andrea Temporelli & Elisabetta Brivio & Pierpaolo Girardi, 2022. "Sodium-Ion Batteries with Ti 1 Al 1 TiC 1.85 MXene as Negative Electrode: Life Cycle Assessment and Life Critical Resource Use Analysis," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    2. Pedro Monteiro & Teresa De Noronha & Paulo Neto, 2013. "A Differentiation Framework for Maritime Clusters: Comparisons across Europe," Sustainability, MDPI, vol. 5(9), pages 1-30, September.
    3. Durmaz, Tunç, 2018. "The economics of CCS: Why have CCS technologies not had an international breakthrough?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 328-340.
    4. Combes, Jean-Louis & Delacote, Philippe & Combes Motel, Pascale & Yogo, Thierry Urbain, 2018. "Public spending, credit and natural capital: Does access to capital foster deforestation?," Economic Modelling, Elsevier, vol. 73(C), pages 306-316.
    5. Alfred Greiner & Willi Semmler & Tobias Mette, 2012. "An Economic Model of Oil Exploration and Extraction," Computational Economics, Springer;Society for Computational Economics, vol. 40(4), pages 387-399, December.
    6. Marius Bulearca & Catalin Popescu, 2019. "New Approaches To The Management Of Natural Resources (1): The Exploitation," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 34-40, December.
    7. John E. Wagner & David H. Newman, 2013. "The Simon-Ehrlich Bet: Teaching Relative Vs. Absolute Scarcity," The American Economist, Sage Publications, vol. 58(1), pages 16-26, May.
    8. Lapko, Yulia & Trucco, Paolo & Nuur, Cali, 2016. "The business perspective on materials criticality: Evidence from manufacturers," Resources Policy, Elsevier, vol. 50(C), pages 93-107.
    9. Fatma El-Hamidi, 2007. "Early Retirement in the Government Sector in Egypt: Preferences, Determinants and Policy Implications," Working Papers 721, Economic Research Forum, revised 01 Jan 2007.
    10. Xiaowei Hu & Peng Li, 2021. "Relief and Stimulus in A Cross-sector Multi-product Scarce Resource Supply Chain Network," Papers 2101.09373, arXiv.org, revised Nov 2022.
    11. Bryan, Brett A. & Ye, Yanqiong & Zhang, Jia'en & Connor, Jeffery D., 2018. "Land-use change impacts on ecosystem services value: Incorporating the scarcity effects of supply and demand dynamics," Ecosystem Services, Elsevier, vol. 32(PA), pages 144-157.
    12. Campbell, Elliott T. & Tilley, David R., 2014. "Valuing ecosystem services from Maryland forests using environmental accounting," Ecosystem Services, Elsevier, vol. 7(C), pages 141-151.
    13. Hu, Xiaowei & Li, Peng, 2022. "Relief and stimulus in a cross-sector multi-product scarce resource supply chain network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    14. Buchmayr, A. & Verhofstadt, E. & Van Ootegem, L. & Sanjuan Delmás, D. & Thomassen, G. & Dewulf, J., 2021. "The path to sustainable energy supply systems: Proposal of an integrative sustainability assessment framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    15. Presno, María José & Landajo, Manuel & Fernández, Paula, 2014. "Non-renewable resource prices: A robust evaluation from the stationarity perspective," Resource and Energy Economics, Elsevier, vol. 36(2), pages 394-416.
    16. Robert Wiedmer & Judith M. Whipple & Stanley E. Griffis & Clay M. Voorhees, 2020. "Resource Scarcity Perceptions in Supply Chains: The Effect of Buyer Altruism on the Propensity for Collaboration," Journal of Supply Chain Management, Institute for Supply Management, vol. 56(4), pages 45-64, October.
    17. Marius Bulearca & Catalin Popescu, 2020. "New Approaches To The Management Of Natural Resources (2): The Market," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 48-54, February.
    18. Nine Klaassen & Arno Scheepens & Bas Flipsen & Joost Vogtlander, 2020. "Eco-Efficient Value Creation of Residential Street Lighting Systems by Simultaneously Analysing the Value, the Costs and the Eco-Costs during the Design and Engineering Phase," Energies, MDPI, vol. 13(13), pages 1-18, June.
    19. Carsten Hefeker & Sebastian G. Kessing, 2017. "Competition for natural resources and the hold-up problem," Canadian Journal of Economics, Canadian Economics Association, vol. 50(3), pages 871-888, August.
    20. Shalini Verma & Akshoy Ranjan Paul & Nawshad Haque, 2022. "Selected Environmental Impact Indicators Assessment of Wind Energy in India Using a Life Cycle Assessment," Energies, MDPI, vol. 15(11), pages 1-16, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:4870-:d:543955. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.