Input-output-based life cycle assessment of the wood construction sector in the Walloon region (Belgium)

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1 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

2 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 *State of the Environment Directorate, and SPW - DGO3 - DEMNA - DEE Key Environmental Indicators for Wallonia in 2012 (KEIW 2012). Status and Outlook Reports. 2

3 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 , 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 , E. Dietzenbacher et al., The Construction of World Input Output Tables in the Wiod Project, Econ. Syst. Res., vol. 25, no. 1, pp , 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. 3

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

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

6 Economic data Method - 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 Supply table Walloon region, 2003 (M ) Products Use table Walloon region, 2003 (M ) Emissions Economic activities (1) Data collection Economic data: SUT Environmental data Regional, EU and RoW NACE NACE NACE Total Intern. imports Regional imports Total products CPA CPA CPA Total economic activity NACE NACE NACE Total Households Fixed capital formation Exports Total products CPA CPA CPA Total Net taxes Gross value added Total economic activity CH4 (t) N2O (t) CO2 (t) Avonds, Luc Evaluation d un cadre entrées-sorties régional pour la Belgique. Planning & Working Papers Working Paper Bureau fédérale du Plan. 6

7 Method - data treatment Disaggregation of air emission and energy use account Fixed capital formation creation of an investment matrix (2) Development of environmentally extended input-output tables Treatment of coproducts: by-producttechnology model Z = (U V OD)V D 1 Z= Input-output table OD= Off-diagonals D= Diagonal entries Supply table (V ) NACE NACE NACE Total Intern. imports Regional imports Total products CPA CPA CPA Total economic activity Use table (U) NACE NACE NACE Total Households Fixed capital formation Exports Total products CPA CPA CPA Total Net taxes Gross value added Total economic activity CH4 (t) N2O (t) CO2 (t) 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 , Mar

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

9 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 CO NMVOC 1873 CO 2763 PM N 2 O 103 PM CH SO Impact assessment Global warming potential (100 y.) kg CO 2 -eq./ M Human toxicity 2312 kg 1.4-DB-eq./ M Photochemical oxidation 148 kg C 2 H 4 -eq./ M Contribution analysis (%) for global warming potential of wood building products produced in Walloon region Acidification 1530 kg SO 2 -eq./ M Eutrophication 262 kg PO 4 -eq./ M 9

10 Global warming potential (t CO 2 -eq./m ) Preliminary results 3000 Clay building materials, bricks, cement, concrete Wood products Iron, steel

11 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

12 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

13 Thank you for your attention Contact: Vanessa Zeller Project information: