The Application of Blockchain-Based Life Cycle Assessment on an Industrial Supply Chain

Xuda Lin, Xing Li, Sameer Kulkarni and Fu Zhao
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Xuda Lin: Division of Environmental and Ecological Engineering, Purdue University, West Lafayette, IN 47907, USA
Xing Li: School of Civil Engineering, Purdue University, West Lafayette, IN 47907, USA
Sameer Kulkarni: School of Mechanical Engineering, Purdue University, West Lafayette, IN 47907, USA
Fu Zhao: Division of Environmental and Ecological Engineering, Purdue University, West Lafayette, IN 47907, USA

Sustainability, 2021, vol. 13, issue 23, 1-15

Abstract: Life cycle assessment (LCA) is a widely recognized tool used to evaluate the environmental impacts of a product or process, based on the environmental inventory database and bills of material. Data quality is one of the most significant factors affecting the analysis results. However, currently, most datasets in inventory databases are generic, i.e., they may represent the material and energy flow of a process at a market average, instead of a specific process used by a manufacturer. As a result, stockholders are unable to track their supply chain to find out the actual environmental impact from each supplier and to compare the environmental performance of alternative options. In this paper, we developed a new framework, i.e., blockchain-based LCA (BC-LCA), where blockchain technology is adapted to secure and transmit inventory data from upstream suppliers to downstream manufacturers. With BC-LCA, more specific data can be acquired along the supply chain in a real-time manner. Moreover, the availability, accuracy, privacy, and automatic update of inventory data can be improved. A case study is provided based on an industrial supply chain to demonstrate the utilization of BC-LCA.

Keywords: life cycle assessment; blockchain; supply chain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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