Eskinder D. Gemechu

Economic and environmental effects of CO 2 taxation: an input-output analysis for Spain

The aim of this work is to investigate the direct and indirect effects of an environmental tax on Spanish products, based on their CO2 emission intensities. For this purpose, we apply environmental input-output (EIO) and price models. The short-term price effects of the introduction of tax on consumption prices, and its influence on consumers’ welfare, are determined. We also quantify the environmental impacts of such taxation in terms of the reduction in CO2 emissions. The results, based on the Spanish economy for the year 2007, show that sectors with a relatively poor environmental profile are subjected to high environmental tax rates. As a consequence, applying a CO2 tax on these sectors increases production prices and induces a slight increase in the Consumer Price Index, and a decrease in private welfare. In general, our analysis highlights that the environmental and economic goals cannot both be met at the same time with the environmental taxation, unless there is a way in which the public revenues could be used to compensate those who are negatively affected by the tax.

Geopolitical-related supply risk assessment as a complement to environmental impact assessment: the case of electric vehicles

PurposeIntroducing a geopolitical-related supply risk (GeoPolRisk) into the life cycle sustainability assessment (LCSA) framework adds a criticality aspect to the current life cycle assessment (LCA) framework to more meaningfully address direct impacts on Natural Resource AoP. The weakness of resource indicators in LCA has been the topic of discussion within the life cycle community for some time. This paper presents a case study on how to proceed towards the integration of resource criticality assessment into LCA under the LCSA. The paper aims at highlighting the significance of introducing the GeoPolRisk indicator to complement and extend the established environmental LCA impact categories.MethodsA newly developed GeoPolRisk indicator proposed by Gemechu et al., J Ind Ecol (2015) was applied to metals used in the life cycle of an electric vehicle, and the results are compared with an attributional LCA of the same resources. The inventory data is based on the publication by Hawkins et al., J Ind Ecol 17:53–64 (2013), which provides a current, transparent, and detailed life cycle inventory data of a European representative first-generation battery small electric vehicle.Results and discussionFrom the 14 investigated metals, copper, aluminum, and steel are the most dominant elements that pose high environmental impacts. On the other hand, magnesium and neodymium show relatively higher supply risk when geopolitical elements are considered. While, the environmental indicator results all tend to point the same hotspots which arise from the substantial use of resources in the electric vehicle’s life cycle, the GeoPolRisk highlights that there are important elements present in very small amounts but crucial to the overall LCSA. It provides a complementary sustainability dimension that can be added to conventional LCA as an important extension within LCSA.ConclusionsResource challenges in a short-term time perspective can be better addressed by including social and geopolitical factors in addition to the conventional indicators which are based on their geological availability. This is more significant for modern technologies such as electronic devices in which critical resources contribute to important components. The case study advances the use of the GeoPolRisk assessment method but does still face certain limitations that need further elaboration; however, directions for future research are promising.

Life Cycle Management: Implementing Sustainability in Business Practice

Life cycle management is a business management concept applied in industrial and service sectors to improve products and services, while enhancing the overall sustainability performance of the business and its value chains. Life cycle thinking and product sustainability is operational for businesses that are ambitious and committed to reducing their environmental and socio-economic burden while maximizing economic and social value. In this regard, life cycle management is used beyond short-term business success and aims at long-term achievements. The term “life cycle management” has been confused with other uses in engineering and manufacturing (product life cycle management) and in software development (application life cycle management), in buildings, plants, information management and so on. There is a need to clarify this term and its definition more than a decade since the concept was first introduced. This chapter aims at elaborating the concept and definitions of life cycle management as currently found in literature and as extending it from focusing on implementation of life cycle sustainability assessment into business practice to include it as part of sustainable consumption and production strategies and policies. Methods and tools used and the general framework for life cycle sustainability management covering environmental, social and economic aspects in business practices are discussed in detail.

How to Implement Life Cycle Management in Business

This chapter discusses how business can implement life cycle sustainability assessment into their management strategies. Life cycle management is a management approach that provides business a systematic way of managing their sustainability issues. The PDCA (Plan, Do, Check and Act) cycle is one of the quality management tools that can be used by companies to implement life cycle management initiatives in order to improve their sustainability performance. The relevance of the PDCA cycle is discussed to ensure a continuous performance improvement by setting and implementing a well-defined plan, checking whether the ambition goals are achieved or any adjustment actions are needed to continue the evaluation process.

CO2 emissions flow due to international trade: multi-regional input–output approach for Spain

As a result of globalization and free trade agreements, international trade is enormously growing and putting more pressure on the environment over the last few decades. This has drawn the attention of both environmental system analysts and economists in response to the ever-growing concerns over climate change and the urgent need for global action for its mitigation. This work aims at analysing the implication of international trade in terms of CO2 responsibility between Spain and its important trading partners using a multi-regional input–output approach based on the data from Organisation for Economic Co-operation and Development and World Input–Output Database. The empirical results show that Spain is a net importer of CO2 emissions, equivalent to 29% of its emissions due to domestic production. The CO2 emissions embodied in the trade with China take the largest share and this is mainly due to the importation of energy-intensive products from China. When analysed by the end-use type, intermediate goods contribute the largest portion, which is about 67% of the total emissions associated with imported goods. Products such as motor vehicles, chemicals, a variety of machineries and equipment, textile and leather products, and construction materials are the key imports responsible for the major portion of CO2 emissions. Being at its peak in 2005, the construction sector is the most responsible activity behind both domestic and imported emissions.

Life Cycle Management Responsibilities and Procedures in the Value Chain

Product life cycles and companies’ value chain dynamics now extend to far-away countries, linking a multitude of end-users with numerous upstream suppliers and manufacturers. The breadth of the sustainability issues of popular concern, together with the complex nature of supply chains from which they arise, leads to serious management challenges. These challenges have been met in different ways depending on the interests and the institutional context of the actors. Corporations are strongly focused on optimizing product performance through a reliance on life cycle assessment based procedures. Commodity sectors are often seeking harmonized sustainability performance across a broad geographical range. Management institutions and business associations are providing life cycle management frameworks for corporations, followed up with training, and further research into improved metrics. At regional level some efforts have been made to introduce life cycle approaches, e.g. sustainable procurement, but the formal application of structured life cycle management is not yet widespread. The different approaches taken by the above actors reflects not only their different situations, but also the lack of a clear universal framework for life cycle management and a more generalized toolbox that will support their sustainability ambitions throughout the value chain. Limitations of current life cycle assessment methodologies imply that not all sustainability challenges are addressed in a consistent manner.