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More caution is needed when using life cycle assessment to determine energy return on investment (EROI)

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  • Arvesen, Anders
  • Hertwich, Edgar G.

Abstract

Cumulative energy demand (CED) estimates from life cycle assessments (LCAs) are increasingly used to determine energy return on investment (EROI), but the difference in indicators can lead to a misclassification of energy flows in the assessment. The core idea of EROI is to measure the relation of energy diverted from society to make energy available to society. CED, on the other hand, includes forms of energy that are not appropriated by society, such as fugitive methane emissions from oil wells as well as losses of heating value of coal during transport and storage. Such energy forms should be excluded from EROI; failure to do so leads to results that are inconsistent with the intention of EROI and potentially misleading. We demonstrate how this problem is at least partially rectifiable by adopting consistent energy accounting, but also note that among the energy flows not appropriated by society occurring in CED, not all flows can easily be removed. Further, we point to inconsistencies in heating value assumptions in a widely used database that have misled analysts. Finally, we argue that the differential weighting of primary energy forms in published CED-based EROI work is unsubstantiated and should be reconsidered.

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  • Arvesen, Anders & Hertwich, Edgar G., 2015. "More caution is needed when using life cycle assessment to determine energy return on investment (EROI)," Energy Policy, Elsevier, vol. 76(C), pages 1-6.
    • Handle: RePEc:eee:enepol:v:76:y:2015:i:c:p:1-6
    DOI: 10.1016/j.enpol.2014.11.025
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    5. Zang, Guiyan & Zhang, Jianan & Jia, Junxi & Lora, Electo Silva & Ratner, Albert, 2020. "Life cycle assessment of power-generation systems based on biomass integrated gasification combined cycles," Renewable Energy, Elsevier, vol. 149(C), pages 336-346.
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    10. David J. Murphy & Marco Raugei & Michael Carbajales-Dale & Brenda Rubio Estrada, 2022. "Energy Return on Investment of Major Energy Carriers: Review and Harmonization," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
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    13. Jones, Christopher & Gilbert, Paul & Raugei, Marco & Mander, Sarah & Leccisi, Enrica, 2017. "An approach to prospective consequential life cycle assessment and net energy analysis of distributed electricity generation," Energy Policy, Elsevier, vol. 100(C), pages 350-358.
    14. Lina I. Brand-Correa & Paul E. Brockway & Claire L. Copeland & Timothy J. Foxon & Anne Owen & Peter G. Taylor, 2017. "Developing an Input-Output Based Method to Estimate a National-Level Energy Return on Investment (EROI)," Energies, MDPI, vol. 10(4), pages 1-21, April.
    15. Adrien Fabre, 2018. "Evolution of EROIs of Electricity Until 2050: Estimation Using the Input-Output Model THEMIS," Policy Papers 2018.09, FAERE - French Association of Environmental and Resource Economists.
    16. David J. Murphy & Michael Carbajales-Dale & Devin Moeller, 2016. "Comparing Apples to Apples: Why the Net Energy Analysis Community Needs to Adopt the Life-Cycle Analysis Framework," Energies, MDPI, vol. 9(11), pages 1-15, November.
    17. Carey W. King & John P. Maxwell & Alyssa Donovan, 2015. "Comparing World Economic and Net Energy Metrics, Part 1: Single Technology and Commodity Perspective," Energies, MDPI, vol. 8(11), pages 1-26, November.
    18. Paul Wolfram & Qingshi Tu & Niko Heeren & Stefan Pauliuk & Edgar G. Hertwich, 2021. "Material efficiency and climate change mitigation of passenger vehicles," Journal of Industrial Ecology, Yale University, vol. 25(2), pages 494-510, April.
    19. Walmsley, Timothy G. & Walmsley, Michael R.W. & Varbanov, Petar S. & Klemeš, Jiří J., 2018. "Energy Ratio analysis and accounting for renewable and non-renewable electricity generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 328-345.
    20. Chen, Yingchao & Feng, Lianyong & Wang, Jianliang & Höök, Mikael, 2017. "Emergy-based energy return on investment method for evaluating energy exploitation," Energy, Elsevier, vol. 128(C), pages 540-549.
    21. Kis, Zoltán & Pandya, Nikul & Koppelaar, Rembrandt H.E.M., 2018. "Electricity generation technologies: Comparison of materials use, energy return on investment, jobs creation and CO2 emissions reduction," Energy Policy, Elsevier, vol. 120(C), pages 144-157.
    22. Victor Court, 2019. "An Estimation of Different Minimum Exergy Return Ratios Required for Society," Biophysical Economics and Resource Quality, Springer, vol. 4(3), pages 1-13, September.
    23. Emily Grubert, 2023. "Yellow, red, and brown energy: leveraging water footprinting concepts for decarbonizing energy systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 7239-7260, July.

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