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EIPOT Final Project Report - Stockholm Environment Institute

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ERA-NET SKEP <strong>Project</strong> <strong>EIPOT</strong> (www.eipot.eu)<br />

“Development of a methodology for the assessment of global environmental impacts of traded goods and services”<br />

treated as a hypothetical industry sector that draws inputs from the existing sectors and has some<br />

associated environmental burden.<br />

Integrated hybrid analysis is the most sophisticated combination: The IO table (in monetary units) is<br />

fully interconnected with the matrix representation of the physical product (or process) system in<br />

physical units, thus forming one consistent computational structure. The interconnection is located at<br />

upstream and downstream cut-off points where process data are not available. Note that,<br />

computationally, integrated hybrid LCA is a functional generalisation of IOA and tiered hybrid LCA.<br />

Compared to process LCA, the main difference of the hybrid life cycle method is that it can overcome<br />

problems of additivity and truncation (system boundary) by using sectoral data from environmental<br />

IOA as an additional source of secondary data, where no primary or secondary process level data is<br />

available. Thus, data gaps in the LCA system can be filled with much less effort than would be<br />

required to obtain process data. The advantages of IO (ready available, complete and consistent data)<br />

are combined with those of process LCA (precise and process-specific data).<br />

Consider, for example, a hybrid LCA of a new car: The material composition is known and cost<br />

calculations are available. For the major materials (steel, plastics and glass) and the main assembly,<br />

process LCA data are available and used in the analysis. For some minor materials, assembly<br />

processes (such as for electric components), capital goods, trade storage and so on, LCA data are<br />

missing. Because the costs of these items are known, and the industrial sectors that deliver them are<br />

known, these data can be obtained from environmental IO databases (SRIO or MRIO).<br />

The following table, taken from Suh and Huppes (2005), lists the various approaches together with<br />

their main characteristics.<br />

Table 4.1: Criteria for choosing Life Cycle Inventory (LCI) methods (from Suh and Huppes 2005)<br />

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