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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
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    References listed on IDEAS

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    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.
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    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.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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).
    5. 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).
    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).

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