Environmental Life Cycle Costing
David Hunkeler, Kerstin Lichtenvort, Gerald Rebitzer
Abstract
David Hunkeler, Kerstin Lichtenvort, Gerald Rebitzer
Abstract
The rationale behind environmental LCC is presented, with a specific focus on key issues that one must consider prior to, and during, the assessment. Specific discussions on the appropriate system boundaries, as well as other links to life cycle assessment, are discussed. These methodological issues include the definition of the functional unit and the most appropriate means for data aggregation. The interpretation of the results and the use of portfolio presentations of LCC as a function of the key environmental impact are recommended. Inputoutput-based LCC is also presented and applied to the cross-cutting washing machine case.
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The rationale behind environmental LCC is presented, with a specific focus on key issues that one must consider prior to, and during, the assessment. Specific discussions on the appropriate system boundaries, as well as other links to life cycle assessment, are discussed. These methodological issues include the definition of the functional unit and the most appropriate means for data aggregation. The interpretation of the results and the use of portfolio presentations of LCC as a function of the key environmental impact are recommended. Inputoutput-based LCC is also presented and applied to the cross-cutting washing machine case.
Key concepts: Life cycle costing, Activity-based costing, Business, Engineering, Operations management, Accounting