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Economic Allocation in Life Cycle Assessment

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  • Fulvio Ardente
  • Maurizio Cellura

Abstract

This article examines methods for analyzing allocation in life cycle assessment (LCA); it focuses on comparisons of economic allocation with other feasible alternatives. The International Organization for Standardization's (ISO) guideline 14044 indicates that economic allocation should only be used as a last resort, when other methods are not suitable. However, the LCA literature reports several examples of the use of economic allocation. This is due partly to its simplicity and partly to its ability to illustrate the properties of complex systems. Sometimes a price summarizes complex attributes of product or service quality that cannot be easily measured by physical criteria. On the other hand, economic allocation does have limitations arising, for example, from the variability of prices and the low correlation between prices and physical flows. This article presents the state of the debate on the topic and some hypothetical examples for illustration. A general conclusion is that it is not possible to determine one “best” allocation method. The allocation procedure has to be selected on a case‐by‐case basis and no single approach is suitable for every situation. Despite its limitations, economic allocation has certain qualities that make it flexible and potentially suitable for different contexts. In some situations, economic allocation should not be the last methodological resort. The option of economic allocation should be considered, for example, whenever the prices of coproducts and coservices differ widely.

Suggested Citation

  • Fulvio Ardente & Maurizio Cellura, 2012. "Economic Allocation in Life Cycle Assessment," Journal of Industrial Ecology, Yale University, vol. 16(3), pages 387-398, June.
  • Handle: RePEc:bla:inecol:v:16:y:2012:i:3:p:387-398
    DOI: 10.1111/j.1530-9290.2011.00434.x
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    Cited by:

    1. Andrea Bragaglio & Aristide Maggiolino & Elio Romano & Pasquale De Palo, 2022. "Role of Corn Silage in the Sustainability of Dairy Buffalo Systems and New Perspective of Allocation Criterion," Agriculture, MDPI, vol. 12(6), pages 1-24, June.
    2. Pina, Eduardo A. & Lozano, Miguel A. & Serra, Luis M., 2018. "Thermoeconomic cost allocation in simple trigeneration systems including thermal energy storage," Energy, Elsevier, vol. 153(C), pages 170-184.
    3. Julia Wenger & Stefan Pichler & Annukka Näyhä & Tobias Stern, 2022. "Practitioners’ Perceptions of Co-Product Allocation Methods in Biorefinery Development—A Case Study of the Austrian Pulp and Paper Industry," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
    4. Ilkka Leinonen & Michael MacLeod & Julian Bell, 2018. "Effects of Alternative Uses of Distillery By-Products on the Greenhouse Gas Emissions of Scottish Malt Whisky Production: A System Expansion Approach," Sustainability, MDPI, vol. 10(5), pages 1-18, May.
    5. Luca Ciacci & Ivano Vassura & Fabrizio Passarini, 2018. "Shedding Light on the Anthropogenic Europium Cycle in the EU–28. Marking Product Turnover and Energy Progress in the Lighting Sector," Resources, MDPI, vol. 7(3), pages 1-17, September.
    6. Stamp, Anna & Althaus, Hans-Jörg & Wäger, Patrick A., 2013. "Limitations of applying life cycle assessment to complex co-product systems: The case of an integrated precious metals smelter-refinery," Resources, Conservation & Recycling, Elsevier, vol. 80(C), pages 85-96.
    7. Allacker, K. & Mathieux, F. & Manfredi, S. & Pelletier, N. & De Camillis, C. & Ardente, F. & Pant, R., 2014. "Allocation solutions for secondary material production and end of life recovery: Proposals for product policy initiatives," Resources, Conservation & Recycling, Elsevier, vol. 88(C), pages 1-12.
    8. Francisco Javier Flor-Montalvo & Eduardo Martínez-Cámara & Jorge Luis García-Alcaraz & Emilio Jiménez-Macías & Juan-Ignacio Latorre-Biel & Julio Blanco-Fernández, 2022. "Environmental Impact Analysis of Natural Cork Stopper Manufacturing," Agriculture, MDPI, vol. 12(5), pages 1-15, April.
    9. Roffeis, Martin & Fitches, Elaine C. & Wakefield, Maureen E. & Almeida, Joana & Alves Valada, Tatiana R. & Devic, Emilie & Koné, N’Golopé & Kenis, Marc & Nacambo, Saidou & Koko, Gabriel K.D. & Mathijs, 2020. "Ex-ante life cycle impact assessment of insect based feed production in West Africa," Agricultural Systems, Elsevier, vol. 178(C).
    10. Pina, Eduardo A. & Lozano, Miguel A. & Serra, Luis M., 2018. "Allocation of economic costs in trigeneration systems at variable load conditions including renewable energy sources and thermal energy storage," Energy, Elsevier, vol. 151(C), pages 633-646.

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