Economic Allocation in Life Cycle Assessment

Fulvio Ardente and Maurizio Cellura

Journal of Industrial Ecology, 2012, vol. 16, issue 3, 387-398

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.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://doi.org/10.1111/j.1530-9290.2011.00434.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:16:y:2012:i:3:p:387-398

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1088-1980

Access Statistics for this article

Journal of Industrial Ecology is currently edited by Reid Lifset

More articles in Journal of Industrial Ecology from Yale University
Bibliographic data for series maintained by Wiley Content Delivery ().