Input-output-based life cycle assessment of the wood construction - PowerPoint PPT Presentation

Input-output-based life cycle assessment of the wood construction sector in the Walloon region (Belgium) Vanessa R. Zeller, Aliénor Richard, Nelle Thyssen, Marc Degrez 05/11/2014

Introduction Walloon region (Belgium) • Regional decision-making is particularly important in BE • Regional differences in the economic structure • Energy intensity of Walloon region is 20 % higher than the Belgian and 60 % higher than the EU average* • Building /construction sector has high environmental impacts Project framework • Evaluate and reduce environmental impacts of the wood construction sector in the Walloon region Method • Process LCA at product and building level • IO-based LCA at sector/regional level 2 *State of the Environment Directorate, and SPW - DGO3 - DEMNA - DEE. 2012. Key Environmental Indicators for Wallonia in 2012 (KEIW 2012). Status and Outlook Reports.

Introduction Input-output based life cycle assessment (LCA) • Environmentally extended input-output analysis (EEIOA) • Evaluation of production and consumption activities at high economic and geographic level • IO-based LCA approaches in the 90s ( Hertwich 2005) • Focus on household environmental impacts • Energy and CO 2 emissions Recent developments • New databases at global level available: as EXIOBASE (Tukker et al. 2013 ), WIOD (Dietzenbacher et al. 2013) and GTAP-MRIO (Andrew and Peters 2013) • Progress in the modelling of interregional trade • → Models at subnational scale are hardly available • E. G. Hertwich , “Life Cycle Approaches to Sustainable Consumption: A Critical Review,” Environ. Sci. Technol. , vol. 39, no. 13, pp. 4673 – 4684, 2005. • A. Tukker et al. “ Exiopol – Development and Illustrative Analyses of a Detailed Global Mr Ee Sut/Iot ,” Econ. Syst. Res. , vol. 25, no. 1, pp. 50 – 70, 2013. • E. Dietzenbacher et al., “The Construction of World Input– Output Tables in the Wiod Project,” Econ. Syst. Res. , vol. 25, no. 1, pp. 71 – 98, 2013. 3 • R. M. Andrew and G. P. Peters, “A Multi -Region Input – Output Table Based on the Global Trade Analysis Project Database (gtap-Mrio ),” Econ. Syst. Res. , vol. 25, no. 1, pp. 99 – 121, 2013.

Method - overview Development of the model Analyses/Applicatio n (5) Baseline (1) Data collection (3) Input-output analysis • Economic data: SUT • 𝑦 = (𝐽 − 𝑎) −1 𝑧 Analysis of production (118 • Environmental data sectors) 𝑓 = 𝐶(𝐽 − 𝑎) −1 𝑧 • Regional, EU and RoW • Analysis of consumption → Priority setting environmental policy Inventory results (2) Development of environmentally • (6) Scenario analysis Emissions into air, soil and water extended input-output tables • Resource use (energy, minerals, • Studying improvements land use) • Consumption scenarios • Added value, employment • Technology scenarios → Support decision-making (4) Impact assessment Modelling trade 4

Method - overview Development of the model Analyses/Applicatio n (5) Baseline (1) Data collection (3) Input-output analysis • Economic data: SUT • 𝑦 = (𝐽 − 𝑎) −1 𝑧 Analysis of production (118 • Environmental data sectors) 𝑓 = 𝐶(𝐽 − 𝑎) −1 𝑧 • Regional, EU and RoW • Analysis of consumption → Priority setting environmental policy Inventory results (2) Development of environmentally • (6) Scenario analysis Emissions into air, soil and water extended input-output tables • Resource use (energy, minerals, • Studying improvements land use) • Consumption scenarios • Added value, employment • Technology scenarios → Support decision-making (4) Impact assessment Modelling trade 5

Method - data (1) Data collection • Economic data: SUT • Environmental data • Regional, EU and RoW Economic data • SUT for 3 Belgian regions, at basic price, million € (2003, 2007, 2011) Environmental data • Air emission and energy use accounts for 3 Belgian regions Economic activities Supply table NACE 01-05 NACE 10-45 NACE 50-95 Total Intern. imports Regional imports Total products Walloon region, 2003 CPA 01-05 1.922 5 50 1.977 1.132 67 3.176 (M € ) CPA 10-45 35 43.964 1.955 45.954 32.387 5.255 83.596 Products CPA 50-95 3 1.625 68.419 70.047 5.049 11.391 86.487 Total economic activity 1.960 45.594 70.424 117.978 38.568 16.713 173.259 Fixed capital Use table Households formation Total products NACE 01-05 NACE 10-45 NACE 50-95 Total Exports Walloon region, CPA 01-05 99 1.054 122 1.275 654 37 1.209 3.175 2003 (M € ) CPA 10-45 664 20.209 7.665 28.538 12.000 8.637 34.419 83.594 CPA 50-95 378 10.027 18.707 29.112 44.947 1.843 10.584 86.486 Total 1.141 31.290 26.494 58.925 57.601 10.517 46.212 173.255 Net taxes 20 111 1.413 1.544 5.010 1.268 59 7.881 Gross value added 798 14.192 42.517 57.507 Total economic activity 1.959 45.593 70.424 117.976 CH4 (t) 92.010 8.983 9.593 110.586 3.728 114.314 Emissions N2O (t) 7.920 3.142 1.157 12.219 471 12.690 CO2 (t) 361.253 27.892.832 6.757.857 35.011.943 11.356.350 46.368.293 6 Avonds, Luc. 2008. Evaluation d’un cadre entrées -sorties régional pour la Belgique . Planning & Working Papers Working Paper 18-08. Bureau fédérale du Plan.

Method - data treatment (2) Development of environmentally extended input-output tables • Disaggregation of air emission and energy use account • Fixed capital formation →creation of an investment matrix Supply table (V’) • Treatment of co- NACE 01-05 NACE 10-45 NACE 50-95 Total Intern. imports Regional imports Total products CPA 01-05 1.922 5 50 1.977 1.132 67 3.176 products: by-product- CPA 10-45 35 43.964 1.955 45.954 32.387 5.255 83.596 CPA 50-95 3 1.625 68.419 70.047 5.049 11.391 86.487 technology model Total economic activity 1.960 45.594 70.424 117.978 38.568 16.713 173.259 Use table (U) −1 Z = (U − V ′OD )V′ D Fixed capital Households formation Total products NACE 01-05 NACE 10-45 NACE 50-95 Total Exports CPA 01-05 99 1.054 122 1.275 654 37 1.209 3.175 CPA 10-45 664 20.209 7.665 28.538 12.000 8.637 34.419 83.594 CPA 50-95 378 10.027 18.707 29.112 44.947 1.843 10.584 86.486 Z= Input-output table Total 1.141 31.290 26.494 58.925 57.601 10.517 46.212 173.255 OD= Off-diagonals Net taxes 20 111 1.413 1.544 5.010 1.268 59 7.881 D= Diagonal entries Gross value added 798 14.192 42.517 57.507 Total economic activity 1.959 45.593 70.424 117.976 CH4 (t) 92.010 8.983 9.593 110.586 3.728 114.314 N2O (t) 7.920 3.142 1.157 12.219 471 12.690 CO2 (t) 361.253 27.892.832 6.757.857 35.011.943 11.356.350 46.368.293 7 S. Suh, B. Weidema, J. H. Schmidt, and R. Heijungs , “Generalized Make and Use Framework for Allocation in Life Cycle Assessment,” J. Ind. Ecol. , vol. 14, no. 2, pp. 335 – 353, Mar. 2010.

Method Input-output table (Z) (3) Input-output analysis CPA 01-05 CPA 10-45 CPA 50-95 𝑦 = (𝐽 − 𝑎) −1 𝑧 CPA 01-05 0,05 0,02 0,00 CPA 10-45 0,33 0,46 0,08 𝑓 = 𝐶(𝐽 − Z) −1 𝑧 CPA 50-95 0,20 0,19 0,27 CH (t) 47,87 0,20 0,14 x = Total demand e= Environmental intervention Leontief inverse (I-Z) -1 B= environmental intervention matrix CPA 01-05 CPA 10-45 CPA 50-95 CPA 01-05 1,07 0,05 0,01 • CPA 10-45 0,72 1,96 0,23 Specify the final demand vector y CPA 50-95 0,48 0,53 1,44  E.g. the total production of wood construction products Emission matrix (B)  All products consumed in Walloon region CH 4 (t) 47,87 0,20 0,14 N 2 O (t) 4,12 0,07 0,02 CO 2 (t) (4) Impact assessment 187,96 634,45 98,77 • Characterisation factors according to CML 2 baseline 2000 methodology (April 2013) 8

Preliminary results For the wood construction sector of the Walloon region in million € (2007) Inventory results Air emission kg/M € Air emission kg/M € NH 3 48 NO 2 1.669 CO 2 397.906 NMVOC 1873 CO 2763 PM 10 167 N 2 O 103 PM 2.5 143 CH 4 329 SO 2 516 Impact assessment Global warming 436872 kg CO 2 -eq./ M € Contribution analysis (%) for global potential (100 y.) warming potential of wood building products produced in Walloon region Human toxicity 2312 kg 1.4-DB-eq./ M € Photochemical 148 kg C 2 H 4 -eq./ M € oxidation Acidification 1530 kg SO 2 -eq./ M € Eutrophication 262 kg PO 4 -eq./ M € 9

Preliminary results Clay building materials, bricks, cement, concrete 3000 Iron, steel Global warming potential 2500 Wood products (t CO 2 -eq./M € ) 2000 1500 1000 500 0 10

Discussion • No cut-offs, inputs such as services and capital goods are included • Identification of hot-spots for global warming potential Limitations • Incomplete environmental and economic data • Simplified approach for investments and distribution of environmental interventions to sectors • Domestic technology assumption • Use phase and end-of life are not included (they are modelled as separate sectors) 11

Conclusions • With IO-based LCA at the regional (subnational) level can be addressed • Availability of data • → Regional comparisons • With IO-based data it is possible to link regional production/consumption with international supply chains • But multiregional assessments are data intensive • Compatibility issues • Additional information to process-LCA, no substitution • Evaluate each sector within an economic system • Large scale scenarios 12