QUANTIFIED ECO-EFFICIENCY

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1 QUANTIFIED ECO-EFFICIENCY

2 ECO-EFFICIENCY IN INDUSTRY AND SCIENCE VOLUME 22 Series Editor: Arnold Tukker, TNO-STB, Delft, The Netherlands Editorial Advisory Board: Martin Charter, Centre for Sustainable Design, The Surrey Institute of Art & Design, Farnham, United Kingdom John Ehrenfeld, International Society for Industrial Ecology, New Haven, U.S.A. Gjalt Huppes, Centre of Environmental Science, Leiden University, Leiden, The Netherlands Reid Lifset, Yale University School of Forestry and Environmental Studies, New Haven, U.S.A. Theo de Bruijn, Center for Clean Technology and Environmental Policy (CSTM), University of Twente, Enschede, The Netherlands The titles published in this series are listed at the end of this volume.

3 Quantified Eco-Efficiency An Introduction with Applications Edited by Gjalt Huppes CML, Department of Industrial Ecology, Leiden University, Leiden, The Netherlands and Masanobu Ishikawa Graduate School of Economics, Kobe University, Kobe, Japan

4 A C.I.P. Catalogue record for this book is available from the Library of Congress. ISBN (HB) ISBN (HB) ISBN (e-book) ISBN ( e-book) Published by Springer, P.O. Box 17, 3300 AA Dordrecht, The Netherlands. The Conference was supported by the Center of International Joint Research for Economic Analysis and Policy (COREAP) of the 21 Century COE Program of Kobe University in Japan. Printed on acid-free paper All Rights Reserved 2007 Springer No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work.

5 M Table of Contents Preface Corresponding Authors vii ix 1 An introduction to quantified eco-efficiency analysis 1 Gjalt Huppes and Masanobu Ishikawa General ethods 2 Maximum abatement costs for calculating cost-effectiveness of green activities with multiple environmental effects 41 Tosihiro Oka, Yoshifumi Fujii, Masanobu Ishikawa, Yu Matsuno and Shu Susami 3 From thermodynamic efficiency to eco-efficiency 79 Reinout Heijungs 4 The price of toxicity. Methodology for the assessment of shadow prices for human toxicity, ecotoxicity and abiotic depletion 105 Toon van Harmelen, René Korenromp, Ceiloi van Deutekom, Tom Ligthart, Saskia van Leeuwen and René van Gijlswijk Cases in Agriculture 5 Conservation reconsidered: a modified input-output analysis of the economic impact of China s land conservation policy 129 Fan Zhang v

6 vi Table of Contents Cases in Industry 6 Eco-efficiency in redesigned extended supply chains; furniture as an example 163 Ottar Michelsen 7 Practical experiences with reducing industrial use of water and chemicals in the galvanising industry 181 Johannes Fresner, Josef Mair, Hans Schnitzer, Christoph Brunner, Gernot Gwehenberger and Mikko Planasch 8 Cost-efficient solutions can speed up ecological (and social) development A proposal 211 Ernst-Josef Spindler Cases in Products and Consumption U 9 Environmental performance of households 223 Mette Wier, Line Block Christoffersen, Jesper Munksgaard, Trine S. Jensen, Ole G. Pedersen and Hans Keiding 10 Eco-efficiency analysis of an electrochromic smart window prototype 247 Spiros Papaefthimiou, Elleni Syrrakou and Panayiotis Yianoulis 11 Upgrade planning for upgradeable product design 261 Kentaro Watanabe, Yoshiki Shimomura, Ak ira Matsuda, Shinsuke Kondoh and Yasushi meda Cases in Recycling 12 A strategic policy model for promoting secondary materials use 285 Nur Indrianti, Shinobu Matsuoka and Masaaki Muraki 13 Eco-efficiency analysis of the plastic recovery systems in Hyogo eco-town project 307 Helmut Yabar and Tohru Morioka Index 329

7 Preface This volume results from the work for the first and second conference on quantified eco-efficiency analysis for sustainability. Most papers are based on work presented at the first conference. However the general introduction to eco-efficiency, in chapter 1, reflects the enormous experience gained in the process of editing the diverse papers resulting from the conference. As several papers show, eco-efficiency analysis is developing fast into a mature method of analysis, with a broad domain of applications. On methods, we selected two papers. One - presented at the conference but now detailed on the basis of further work - refers to the Maximum Abatement Cost method, see chapter 2. It avoids to a large extent value choices and assumptions, as on the validity of neo-classical assumption on the welfare meaning of stated private preferences regarding environmental effects. Using actual cost of emission reduction, it indicates domains of efficient and inefficient environmental improvements in projects with multiple environmental impacts. Some further empirical work on the integration towards s a single environmental indicator uses a shadow price method, applied at the level of LCA type midpoint impact categories, in chapter 4. A deviating voice is on the fundamentals of the eco-efficiency concept, in chapter 3. Are we using the right concepts; might other concepts, better linked to a natural science practice of technical input-output efficiency not be more fruitful for sustainability analysis in the long term? The applied analysis covers the domains of agriculture, industry, products and consumption, and recycling, with cases as small as single products and technologies and as broad as regional recycling activities or large scale reforestation plans. In agriculture, land conversion schemes, especially reforestations plans are analysed using regional input-output analysis, see chapter 5. The industrial cases refer to supply chain management in furniture for improved eco-efficiency, in chapter 6, and the galvanising industry in chapter 7. An eco-efficiency based social procedure is designed vii

methods for extending product life time through upgradeable product design, in chapter 11.

8 viii Preface in chapter 8 using cost advantages of environmental improvements to finance further improvements. Cases on products and consumption range from broad analysis of households performance, in chapter 9; to a specific product with high eco-efficiency potential, the smart window, in chapter 10; to methods for extending product life time through upgradeable product design, in chapter 11. Finally, there is a focus on recycling, one general paper in chapter 12 for selective promotion of secondary materials use at a general policy level, and one on advanced methods and technologies for regional plastics recycling (chapter 13). The introduction to quantified eco-efficiency analysis, in chapter 1, reflects the development of ideas since the first conference. Parts of it have been published in the special issue on eco-efficiency of the Journal of Industrial Ecology. We thank the Journal for allowing us to take over sections from three papers there. The shift in content since then has been to better indicate the relation between macro level sustainability, as quality of the environment combined with global economic growth, and the microlevel of choices on products, technologies and policies, which through ecoefficiency analysis can better be geared to macro-level sustainability. There is direct relevance for eco-innovation and for general sustainability policy, aligning and integrating policies for economic development with environmental policies. This work surely is not finished yet and deserves broader attention in the sustainability analysis community. Finally, we would like to thank EBARA Company from Japan who not only are the main sponsor of the conferences on Quantified Eco-Efficiency Analysis for Sustainability, but also are the sponsor of this book. We owe them gratitude for the unselfish advancement of sustainability science, from a truly global perspective. The editors Gjalt Huppes Masanobu Ishikawa

9 Corresponding Authors Fresner, Johannes (ch. 7) STENUM GmbH Geidorfgürtel 21, 8010 Graz, Austria Harmelen, Toon van (ch. 4) TNO Institute of Environment, Energy and Process Innovation P.O. Box 1, NL-7300 AH Apeldoorn, Netherlands Heijungs, Reinout (ch. 3) CML, Department Industrial Ecology, Leiden University P.O. Box 9518, NL-2300 RA Leiden, Netherlands Huppes, Gjalt (editor, preface, ch. 1) CML, Department Industrial Ecology, Leiden University P.O. Box 9518, NL-2300 RA Leiden, Netherlands Indrianti, Nur (ch. 12) Ishikawa, Masanobu (editor, preface, ch. 1) Graduate School of Economics, Kobe University 2-1 Rokkodai-cho, Nada-ku, Kobe , Japan Michelsen, Ottar (ch. 6) Department of Industrial Economics and Technology Management Norwegian University of Science and Technology (NTNU) NO-7491 Trondheim, Norway ix

10 x Corresponding Authors Oka, Tosihiro (ch. 2) Graduate School of Economics and Administration, Fukui Prefectural University Kenjojima Matsuoka-cho Yoshida-gun, Fukui , Japan Papaefthimiou, Spiros (ch. 10) Solar Energy Laboratory, Physics Department, University of Patras Patras 26500, Greece Spindler, Ernst-Josef (ch. 8) Vinnolit GmbH & Co. KG D Burghausen, Germany ernst.spindler@vinnolit.com Watanabe Kentaro (ch. 11) Research into Artifacts, Center for Engineering, University of Tokyo Komaba 4-6-1, Meguro-ku, Tokyo, Japan nabeken@race.u-tokyo.ac.jp Wier, Mette (ch. 9) AKF, Institute of Local Government Studies Nyropsgade 37, DK-1602 Copenhagen, Denmark mw@akf.dk Yabar, Helmut (ch. 13) Div. of Sustainable Energy and Environmental Engineering Graduate School of Engineering, Osaka University 2-1 Yamadaoka, Suita, Osaka , Japan yabar@ecolonia.env.eng.osaka-u.ac.jp Zhang, Fan (ch. 5) Harvard University 79 John F. Kennedy Street, Cambridge, MA USA Fan_Zhang@ksgphd.harvard.edu

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Springer Geography. For further volumes: Springer Geography For further volumes: http://www.springer.com/series/10180 Shinsuke Kato l Editors Kyosuke Hiyama Ventilating Cities Air-flow Criteria for Healthy and Comfortable Urban Living Editors