Transportation-focused Environmental Impact Assessment of U.S. Manufacturing: A Life Cycle Analysis

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1 Transportation-focused Environmental Impact Assessment of U.S. Manufacturing: A Life Cycle Analysis IERC 14, Montreal, Canada June 2 nd, 2014 Gokhan Egilmez Asst. Prof. of Industrial and Manufacturing Engineering North Dakota State University Co-authors: Murat Kucukvar, Postdoctoral Researcher, University of Central Florida Yong Shin Park, Graduate Research Assistant, North Dakota State University

2 Manufacturing and Transportation Nexus Manufacturing Transportation Consumption The U.S., accounts for 44.8% of the commodity flow in the U.S. (RITA - U.S. DOT, 2012). U.S. freight transportation is responsible for approximately 35% of the total GHG emissions in transportation activities (EPA, 2003; Horvath, 2006) 2

3 Environmental impacts of U.S. GHG 20% of total GHG emissions in the U.S. The third largest industry after transportation and electric power industries (EPA, 2012) Energy The third leading sector in energy usage with a share of 20% (with a usage of 20 quadrillion BTU) Water Power Generation and Farming industries account for 41% of total water withdrawals in U.S (Blackhurst et al., 2010). Toxic Release Metal Mining, Food, Beverage, Tobacco, Primary Metals and Chemical Manufacturing sectors account for approximately 71% of all toxic releases (EPA, 2010) 3

4 Sustainable Manufacturing and Life Cycle Assessment Sustainable Manufacturing The creation of manufactured products that use processes that are non-polluting, conserve energy and natural resources, and are economically sound and safe for employees, communities and consumers (Dept. of Commerce, 2012) Life Cycle Assessment A well-known and widely used approach to assessing the potential environmental impacts and resources used throughout a product s life cycle, including raw material acquisition, production, distribution, use, and end-of-life phases (Finnveden et al., 2009) 4

5 Life Cycle Assessment Toxics Carbon Solid Waste By Products Raw Material Extraction Manufacturing Use Disposal Recycling Re-use 5

6 Basic Life Cycle Assessment Methodology Life Cycle Inventory Impact Assessment Interpretation & Policy Making Goal & Scope Definition 6

7 Life Cycle Assessment Models *TBL-LCA (UCF) Eco-LCA (OSU) EIO-LCA (CMU) P-LCA (U.S. EPA) *Kucukvar, M., & Tatari, O. (2013). Towards a triple bottom-line sustainability assessment of the US construction industry. The International Journal of Life Cycle Assessment, *Egilmez, G., Kucukvar, M., & Tatari, O. (2014). Supply chain sustainability assessment of the U.S. food sectors: A life cycle-based frontier approach, Resources Conservation and Recycling, Elsevier, Volume 82, January 2014,

8 Need for a single eco-efficiency score Well known mantra in business world: What get s measured gets managed Environmental pressures with different Units of measurement Scale Non-subjective benchmarking No subjective weight assignment 8

9 Summary of Research Methodology Focus Transportation-focused Sustainability Assessment of U.S. Manufacturing Sectors: An Economic Input Output-based Frontier Approach EIO-LCA Transportation-focused Sustainability assessment of nations sectors with EIO-LCA Eco-efficiency ($/Environmental Impact) Deriving the transportation sustainability score for each sector with Data Envelopment Analysis (DEA) 9

10 Goal and Method Goal To develop an analytical approach that can be used to analyze and compare the sustainability performance of 53 U.S. sectors transportation impacts Method The synergistic use of EIO-LCA and DEA would enhance the interpretation of LCA results by aggregating different environmental pressures and economic value added into a single sustainability performance score 10

11 Economic Input Output Life Cycle Assessment (EIO-LCA) Economic Input-Output Matrix Public Datasets Unit environmental output $ Output Unit economic output Automobile Mfg. Carbon Footprint Energy Use Water Footprint Solid Waste Toxic Releases Land Use Transportation Activities $ Input Unit environmental output Unit economic input Motor Vehicle Parts Mfg. All Other Sectors Iron and Steel Mills 11

12 Data Envelopment Analysis (DEA) Input-oriented DEA multiplier model proposed by Charnes et al. (1978): Notation 12

13 Life Cycle Inventory Carbon emissions, energy and water consumption of each mfg. sector that is associated with transportation sectors (both truck, air, water and rail modes). 276 sub-sectors 53 major mfg. sectors ID Manufacturing Sector Carbon FP Energy FP Water FP 1 Food 34,253, , ,588, Beverage 3,503, , , Tobacco 711, , , Textile mills 2,076, , , Textile product mills 1,439, , , Apparel 1,240, , ,380.8 Leather and allied product 7 347, , , Wood product 4,885, , ,268.5 Pulp, paper, and paperboard 9 2,645, , ,973.2 mills Converted paper product 10 4,750, , ,973.0 Printing and related support 11 2,033, , ,809.6 activities Petroleum and coal products 12 9,156, , , Basic chemical 2,192, , ,128.1 Resin, rubber, and artificial 14 4,952, , ,328.6 fibers Agricultural chemical 15 1,423, , ,739.1 Pharmaceutical and medicine 16 2,360, , ,419.4 Paint, coating, and adhesive 17 1,436, , ,596.1 Soap, cleaning compound, and , , ,099.9 toiletry Other chemical product and 19 1,614, , ,915.0 preparation Plastics and rubber products 20 7,225, , ,948.4 Nonmetallic mineral product 21 6,395, , , Foundries 745, , , Forging and stamping 1,198, , ,535.8 Cutlery and handtool , , ,736.0 Architectural and structural 25 1,402, , ,543.1 metals Boiler, tank, and shipping 26 1,421, , ,910.1 container Agriculture, construction, and 27 mining machinery 1,868, , ,082.8 Industrial machinery , , ,705.6 Commercial and service 29 industry machinery 531, , ,082.7 HVAC and commercial 30 refrigeration equipment 612, , ,832.7 Metalworking machinery 31 1,290, , ,812.9 Engine, turbine, and power 32 transmission equipment 516, , ,071.8 Other general purpose 33 2,049, , ,584.6 machinery Computer and peripheral 34 1,229, , ,419.5 equipment Semiconductor and other 35 electronic component 2,739, , ,149.1 Electronic instrument 36 2,086, , ,022.6 Manufacturing and 37 reproducing magnetic and 283, , ,683.9 optical media Electric lighting equipment , , ,418.9 Household appliance , , ,086.1 Electrical equipment , , ,092.7 Other electrical equipment and 41 1,886, , ,271.2 component 42 Motor vehicle 3,640, , ,095.6 Aerospace product and parts 43 8,892, , ,924.8 Furniture and related product 44 2,732, , ,628.6 Medical equipment and 45 1,498, , ,605.9 supplies Other miscellaneous 46 2,629, , ,424.6 Iron and steel mills and 47 from purchased 2,874, , ,806.9 steel Nonferrous metal production 48 3,392, , ,435.7 and processing Ordnance and accessories , , ,548.6 Other fabricated metal product 50 3,667, , ,586.3 Audio, video, and 51 communications equipment 1,698, , ,142.1 Motor vehicle body, trailer, and 52 5,793, , ,315.9 parts Other transportation 53 1,543, , ,090.2 equipment Total Impact of U.S. 156,768, ,219, ,330,548.2 Manufacturing 13

14 LCI by GHG Emissions (ton CO2-eqv.) Food Petroleum and coal products Aerospace product and parts Plastics and rubber products Nonmetallic mineral product Motor vehicle body, trailer, and parts Resin, rubber, and artificial fibers Wood product Converted paper product Other fabricated metal product 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 14

15 LCI by Energy Use (Tera-joules) Food Petroleum and coal products Aerospace product and parts Plastics and rubber products Nonmetallic mineral product Motor vehicle body, trailer, and parts Resin, rubber, and artificial fibers Wood product Converted paper product Other fabricated metal product 15

16 LCI by Water Consumption (kgals) Food Petroleum and coal products Aerospace product and parts Plastics and rubber products Nonmetallic mineral product Motor vehicle body, trailer, and parts Resin, rubber, and artificial fibers Converted paper product Wood product Nonferrous metal production and processing 16

17 Descriptives about Transportation / Supply Chain Impacts Descriptives GHG Water Energy Use Emissions Withdrawals Mean %17.41 %16.53 %0.07 Min %4.85 %4.65 %0.01 Max %31.71 %29.73 %0.11 Std. Dev. %6.00 %5.55 %0.02 Median %17.39 %16.93 %

18 Eco-efficiency (EE) Results Avg. eco-efficiency ~ 0.5 Tobacco Mfg. (1.00 ~ Max-EE) Iron and steel mills and mfg. from purchased still (0.22 ~ Min-EE) Tobacco Ordnance and accessories Pharmaceutical and medicine Printing and related support activities Electronic instrument Medical equipment and supplies Electric lighting equipment Computer and peripheral equipment Commercial and service industry machinery Manufacturing and reproducing magnetic and Aerospace product and parts Audio, video, and communications equipment Engine, turbine, and power transmission Semiconductor and other electronic component Apparel Metalworking machinery Other transportation equipment Other general purpose machinery Industrial machinery Cutlery and handtool Electrical equipment Petroleum and coal products Other electrical equipment and component Motor vehicle body, trailer, and parts Soap, cleaning compound, and toiletry Motor vehicle HVAC and commercial refrigeration equipment Other fabricated metal product Leather and allied product Household appliance U.S. Average Agriculture, construction, and mining Other miscellaneous Basic chemical Foundries Plastics and rubber products Furniture and related product Textile mills Textile product mills Boiler, tank, and shipping container Beverage Nonmetallic mineral product Architectural and structural metals Other chemical product and preparation Converted paper product Resin, rubber, and artificial fibers Forging and stamping Pulp, paper, and paperboard mills Wood product Agricultural chemical Nonferrous metal production and processing Paint, coating, and adhesive Food Iron and steel mills and from % 20% 40% 60% 80% 100% 18

19 Comparison with Egilmez et al. (2013) Following sectors have significantly higher supply-chain linked eco-efficiency compared to transportation focused ecoefficiency Eco-efficiency Scores (Egilmez et al., 2013 Transportation Focused Ecoefficiency Food mfg. Leather and allied mfg. Motor vehicle mfg. Petroleum and coal products mfg. Overall Ecoefficiency (Egilmez et al., 2013) Transportationfocused Ecoefficiency Pearson Correlation ** Sig. (2-tailed).000 N Pearson Correlation.536 ** 1 Sig. (2-tailed).000 N **. Correlation is significant at the 0.01 level (2-tailed). Tobacco Ordnance and accessories Pharmaceutical and medicine Printing and related support activities Electronic instrument Medical equipment and supplies Electric lighting equipment Computer and peripheral equipment Commercial and service industry machinery Manufacturing and reproducing magnetic and optical media Aerospace product and parts Audio, video, and communications equipment Engine, turbine, and power transmission equipment Semiconductor and other electronic component Apparel Metalworking machinery Other transportation equipment Other general purpose machinery Industrial machinery Cutlery and handtool Electrical equipment Petroleum and coal products Other electrical equipment and component Motor vehicle body, trailer, and parts U.S. Average Soap, cleaning compound, and toiletry Motor vehicle HVAC and commercial refrigeration equipment Other fabricated metal product Leather and allied product Household appliance Agriculture, construction, and mining machinery Other miscellaneous Basic chemical Foundries Plastics and rubber products Furniture and related product Textile mills Textile product mills Boiler, tank, and shipping container Beverage Nonmetallic mineral product Architectural and structural metals Other chemical product and preparation Converted paper product Resin, rubber, and artificial fibers Forging and stamping Pulp, paper, and paperboard mills Wood product Agricultural chemical Nonferrous metal production and processing Paint, coating, and adhesive Food Iron and steel mills and from purchased steel Transportation Impacts Focused Eco-efficiency Overall Supply Chain-linked Eco-Efficiency

20 Summary and Conclusion Transportation-focused life cycle inventory of U.S. sectors is quantified for GHG emissions, energy and water use. Integrated EIO-LCA and DEA method is applied. Comparison with previous work (Egilmez et al., 2013) is provided. Results indicated that food is a driver sector for transportation related impacts Food supply chain in the U.S. need to be shortened/optimized Practical policies that force food industry to localize the production and discribution Options such as mode switch, environmentally friendly transportation can be implemented toward reducing the overall impact Food consumption and waste need to be re-visited and connected with current supply chain linked assessment works (e.g. Egilmez et al., 2014) 20

21 More (Future) Work? Mode specific assessments and optimal intermodal scenarios (truck, air, rail, water) Life cycle impact assessment (e.g. ozon depletion, global warming potential, eco-toxicity, euthrophication, etc. ) Structural path analysis Thru supply chain nodes Dynamic macro-level life cycle assessment System dynamics plus EIO-LCA Agent-based models plus EIO-LCA 21

22 Thank You! QUESTIONS? Gokhan Egilmez, PhD 22

23 Eco-efficient subsectors Eco-efficient subsectors Tobacco product Ammunition Support activities for printing Biological product (except diagnostic) Electricity and signal testing instruments Industrial process furnace and oven Carbon black Pharmaceutical preparation 23

24 References Egilmez, Gokhan, Kucukvar, M., & Tatari, O. (2013). Sustainability assessment of U.S. sectors: an economic input output-based frontier approach. Journal of Cleaner Production. Retrieved from Egilmez, Gokhan, Kucukvar, M., Tatari, O., & Bhutta, M. K. S. (2014). Supply chain sustainability assessment of the U.S. food sectors: A life cycle-based frontier approach. Resources, Conservation and Recycling, 82, Research and Innovative Technology Administration (RITA) - U.S. Department of Transportation (US DOT). (2012). Shipment Characteristics by Industry for the United States: 2007 Bureau of Transportation Statistics Commodity Flow Survey United States. Retrieved from dity_flow_survey/final_tables_december_2009/html/table_05.html 24