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IEEN5303 HW2 Solution 1. The IPAT Equation Use the IPAT equation to estimate the percentage increase in the amount of energy that would be required, worldwide, in 2050, relative to 2006. To estimate the increase in population and affluence (the P and A in the IPAT equation), assume that population grows 1% per year and that global economic activity per person grows 2% per year. Assume that the energy consumption per dollar of GDP (the T in the IPAT equation) remains at 2006 levels. How much does this estimate change if population growth is 2% and economic growth is 4%? (20 points) 2. Estimate the amount of energy that will be used annually, worldwide, if over the next 50 years world population grows to 10 billion and energy use per capita increases to the current per capita consumption rate in the US (330 million BTU/person/yr). What percentage increase does this represent over current global energy use (450 quads)? (20 points) 3. Assume that the conversion of energy into mechanical work (at the wheel) in an internal combustion engine is 20%. Calculate gallons of gasoline required to deliver 30 horsepower at the wheel, for one hour. (20 points) 1 HP = 746 Watts 1 HP for 1 hour is 0.746 kWh 1 Kwh = 3 412 BTU 4. Assuming that generating a kilowatt hour of electricity requires an average of 13 gallons of water (Example 1.4-3) and that an average electric vehicle requires 0.3 kWh/mi traveled (KintnerMeyer, et. al., 2007), calculate the water use per mile traveled for an electric vehicle. If gasoline production requires approximately 10 gallons of water per gallon produced and an average gasoline powered vehicle has a fuel efficiency of 25 miles per gallon, calculate the water use per mile traveled of a gasoline powered vehicle. (20 points) IEEN 5303 Fundamentals of Sustainable Engineering Introduction to Sustainability Instructor: Hua Li 1 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Contents  What is Sustainability?  Drivers  Metrics  Paper review 2 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Defining Sustainability  Brundtland Commission:  A sustainable development “…meets the needs of the present without compromising the ability of future generations to meet their own needs”  Numerous definitions depending on stakeholder’s agenda  Johnson Controls Definition: “Through our actions and offerings, we embrace Environmental , Social and Economic practices that benefit our customers, employees, shareholders, and society as a whole” 3 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Defining Sustainability  Three dimensions interact in the creation of sustainable solutions  Environment  Society  Economy  Sustainability requires a holistic perspective  The three dimensions with all relevant impacts  Global scope  The whole product chain 4 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Environment Sustainability Economy Society Value Sustainability Framework Sustainability Through our actions and offerings, we embrace environmental, social and economic practices that benefit our customers, employees, shareholders and society as a whole 5 Ten-Year Markers Key Strategies Environmental Stewardship • Achieve competitive advantage (e.g., increase sales, profit, market share) from environmentally responsible products and services • Reduce our global environmental foot print (e.g., carbon, waste) • Work with our suppliers to improve the eco-efficiency of the supply chain • We will be a recognized leader in hybrid technology • Our automotive interior products will be 100% recyclable. • x % of our sales will come from environmentally responsible products and services (TBD) • We will have been net carbon neutral for five years • Supply chain metric (TBD) © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Social Responsibility • Increase minority business development and supplier diversity • Strive to attain a productive work environment free of work place diseases and injuries • Recognize and respect the human rights of our employees and community stakeholders • Promote fair selection, development, motivation, and recognition to ensure a diverse and viable work force • Invest in the communities we serve through employee volunteerism and targeted philanthropic giving • We will maintain our membership in the $2B Roundtable • We will have achieved zero lost time accidents and be below the permissible exposure limit for lead • Third party assessment = perfect rating in human rights (TBD) • One of the 100 Best Places to Work; training hrs/person, turnover (TBD) • % employees volunteering, # hours Economic Prosperity • Ensure the ongoing financial viability of the business through strategic investments and management of risk • Hold ourselves accountable to the highest standards of corporate and personal integrity and ethics • We will be $50B by 2011 – double digit sales and margin growth (need to refine) • We will have 70th year of sales growth and 26th year of consecutive earnings increases • We will have 131 years of no criminal convictions • External ethics and integrity award (TBD) Life Cycle Concept  Extension of Life Cycle Concept 6 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Drivers  Environmental  Economic  Social 7 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Drivers-Environment  Burden on the Environment  National Safety Council Statistics:  By 2004, only 16% of computers were recycled.  There are about 500 million obsolete computers in US by 2007. The figure will continue to increase.  500 million computers is equivalent to  A typical computer = 16 inches in length  One Mile = 5280ft  Total Distance = 126,263 miles  Earth’s equator =24,900miles  Circle the earth 5.1 times 8 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Drivers-Economic External Internal Economic Prosperity • Core Values An Integrated, Balanced Strategic Approach • Ethics Policy • ESH Policies • Committed management • Performance metrics • Market position “Triple Bottom-line” Environmental Stewardship 9 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Social Responsibility Drivers-Economic  Revenue & Cost-savings  When asked for their firm’s primary motivation for corporate citizenship, the top three answers all relate to the bottom line: revenue growth (16%), increasing profit (16%) and cost savings (13%). (Economist Intelligence Unit, Profiting from a sustainable business, 2008)  Cost     Energy consumption reduction Utility and State rebates Waste and material packaging reduction New Belgium Brewing Co. – save $280,000 in 1st year  Revenue Generating Opportunities  Waste = Food (e.g., Nylon 6)  Fluctuations in scrap metal markets 10 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Drivers-Social  Green purchasing policies – B2B  Environmental Impact and Future Regulation  Reputation  Other drivers:  Meeting Consumer Demand – 81% of consumers think the current focus on environmental or “green” issues is “here to stay” rather than a “passing fad.”  Meeting Investor Expectations – Investor interest  Management awareness and commitment – 57% executives say that the benefits of pursuing sustainable practices outweigh the costs  No longer just to meet regulations – 82% percent of CEOs said that governments should take more of a leadership role in addressing climate change 11 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Sustainability Metrics – Global Reporting Initiative(GRI) E Direct C Economic O Impacts N O M I C 12 Labor Practices Customers Suppliers Employees Providers of capital Public sector Governance Materials E Environment Energy N Water V Biodiversity Emissions I Effluents R Waste O Suppliers Products and N services M Compliance E Transport Overall N T A © Hua Li IEEN 5303 L Fundamental of Sustainable Engineering S O C I A L Human Rights Society Product Responsibility Employment Labor/management relations Health and safety Training and education Diversity and opportunity Strategy and management Non-discrimination Freedom of association Child labor Forced labor Disciplinary practices Security practices Indigenous rights Community Bribery Political contributions Competition and pricing Product safety Advertising Respect for privacy Challenge  Why quantify the Sustainability?  How to measure environmental sustainability?  How to measure social sustainability? 13 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Master Equation GDP I I = Pop ⋅ ⋅ person GDP  I is the environmental impact  Pop is the global population GDP  person is  14 GDP I the material standard of living represents the eco-efficiency © Hua Li IEEN 5303 Fundamental of Sustainable Engineering (Graedel and Allenby, 1995) Sustainability Challenge GDP I I = Pop ⋅ ⋅ person GDP  The global population will at least double  The material standard of living will grow strongly in large newly industrialised countries (Asia)  The environmental impact is already today unsustainable in many areas 15 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Sustainability Challenge • The eco-efficiency, GDP I I = Pop ⋅ GDP I ⋅ person GDP • Our ability to create wealth with the lowest possible environmental impact • Must increase 4-20 times in order to counterbalance the expected growth in population and material standard of living • achieve the needed reduction in the environmental impact • i.e. to create an environmentally sustainable development 16 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Why Quantify Sustainability?  We need methodology and tools to quantify the three dimensions of sustainability  Metrics for the development of sustainable solutions  Comparative rather than absolute assessments  Identification of focus points for the development of more sustainable technologies and products  Quantification of improvements, assistance in trade-off situations  Development of declarations and criteria for labelling of more sustainable products  …  For sustainability, a systems perspective must be adapted on all three dimensions;  Adapting a life cycle perspective to avoid sub-optimizations  Considering all relevant types of impacts  Addressing trade-offs between impacts and sustainability dimensions 17 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering How to measure social sustainability  Life cycle perspective as for the environmental dimension  Responsibility in the whole product chain  global perspective  Focus on the company instead of the process  In Environmental LCA the process is the fundamental unit  In Social LCA the company is the fundamental unit  There are both positive and negative social impacts 18 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Summary  Development of sustainable solutions requires quantification  Identify the main impacts and quantify them  Development of sustainable solutions requires a life cycle perspective  Identify focus points and avoid problem shifting  Development of sustainable solutions requires a holistic perspective on impacts  Climate change is not always the most important impact, (toxic chemicals, scarce resources and land use, …)  There are also social impacts to keep in mind  Avoid problem shifting among impacts  Marketing of sustainable solutions requires quantification 19 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Summary  We can measure environmental sustainability  relative measures, not absolute  requires weighting between different environmental impacts – inevitable value choices  Methods for assessment of social sustainability under development  Very immature  We can measure economic performance but definition of economic sustainability unclear  Sustainable for whom?  We have three dimensions that need balancing  More weighting where stakeholder acceptance is crucial 20 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering We do not inherit the Earth from our parents; we borrow it from our children. 21 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering IEEN 5303 Fundamentals of Sustainable Engineering An Introduction to Sustainability Dr. Hua Li Dept. of Mechanical & Industrial Engineering Texas A&M University – Kingsville Introduction  Defining Sustainability  A sustainable development “…meets the needs of the present without compromising the ability of future generations to meet their own needs” 2 The magnitude of the sustainability challenge  IPAT equation    The magnitude of the pressure on resources and ecosystems Assess the magnitude of the challenges that our societies face in materials use, energy use, and environmental impacts. I = P*A*T     I: Impact P: Population A: Affluence T: Technology 3   Suggest that impacts (energy use, materials use, emissions) are the product of the population (number of people), the affluence of the population (gross domestic product, GDP, divided by the number of people in the nation), and the impacts associated with the technologies used in the delivery of the affluence (impact per unit of GDP) Example, energy use in the united States     I: energy use per year P: population of the U.S. A: Annual GDP per capita T: energy use per dollar of GDP 4 Energy  Renewable   Solar radiation, wind, and biomass Nonrenewable  Fossil fuels (crude oil, coal, and natural gas) 5 Energy      In 2009 Fossil fuels: 86% Renewable sources: 8% Nuclear energy: 6% 450-500 quadrillion (1015) BTU (British thermal unit) (quads) 6 7 8 9 Materials use  Minerals, metals, and organics 1 short ton=2000 lbs 10 11 Recycling  Increasing scarcity of materials and concerns about releasing waste materials into the environment drives engineers to design systems that reuse and recycle materials. 12 13 14 Water 15 1 HP = 746 Watts 1 HP for 1 hour is 0.746 kWh 1 Kwh = 3412 BTU 16 Environmental Emissions  Environmental emissions and impact      In scope: global, regional and local On timescales: hours to decades Ozone Depletion in Stratosphere Global Warming Regional and Local Air Quality 17 Ozone Depletion in Stratosphere    “Good” and “bad” ozone (O3) Tropospheric ozone Stratospheric ozone 18 Tropospheric ozone     Created by photochemical reactions between nitrogen oxides and hydrocarbons at the Earth’s Surface. A potent oxidant Causes lung irritation and damage Damages crops and trees 19 Stratospheric ozone   Found in the upper atmosphere Performs a vital and beneficial function for all life on Earth by absorbing harmful ultraviolet radiation 20 Destruction of atmospheric ozone  Chlorofluorocarbon (CFC):     composes carbon, chlorine and fluorine High volatility, low water solubility and persistence in lower atmosphere In the stratosphere, they are photo-dissociated to produce chlorine atoms The chlorine atoms is not destroyed in reaction cycle and can cause the destruction of thousands of molecules of ozone before forming HCl by reacting with hydrocarbons 21 Cause and effect Chain 22 Global Warming  Greenhouse effect     Visible radiation from the sun pass through the atmosphere Some radiation reaches the Earth and heat the land and water. Infrared radiation is emitted from the Earth’s surface Certain gases absorb this infrared radiation and redirect a portion back to the surface, thus warming the planet 23 Greenhouse gases  The major factors contributing to the globalwarming potential of a chemical are   Infrared absorptive capacity Residence time in the atmosphere 24 Cause and effect Chain 25 IEEN 5303 Fundamentals of Sustainable Engineering An Introduction to Sustainability Dr. Hua Li Dept. of Mechanical & Industrial Engineering Texas A&M University – Kingsville Review  IPAT equation  Ozone depleting  Greenhouse gas 2 Regional and Local Air Quality  Air pollution at regional and local scales arise from a number of sources.  Stationary  Factories and other manufacturing processes  Mobile  Automobiles, trucks, mobile construction equipment and recreational vehicles (snowmobiles and watercraft)  Area sources  Emissions associated with activities that are not considered mobile or stationary sources and that are associated with human activities  Emissions from lawn and garden equipment and residential heating 3 Pollutants  Pollutants can be classified as  Primary: those emitted directly to the atmosphere  Secondary, being formed in the atmosphere after emission of precursor compound  Photochemical smog is formed from the emission of volatile organic compounds (VOCs) and nitrogen oxides (NOx), the primary pollutants. 4 Criteria Air Pollutants  Criteria Air Pollutants is one way to categorize air pollutant     5 in the U.S. The Clean Air Act Amendments of 1970 charged the United States Environmental Protection Agency (EPA) with identifying those air that most affect public health and welfare, and with setting maximum allowable ambient air concentrations (criteria) for these air pollutants. Six chemical species or groups of species have both primary and secondary standard that make up the National Ambient Air Quality Standards (NAAQS). The primary standards: to protect the public heath with an adequate margin of safety The secondary standards: to protect public welfare, such as damage to crops, vegetation and ecosystems or reductions in visibility. 6 PM10 and PM2.5  The diagram above compares the size of these particles (PM10 and PM2.5) to a strand of hair and some beach sand. They are tiny – too small for the human eye to see. The amount of exposure to pollutants is often measured in units of micrograms of substance per cubic metre of air (µg/m3). 7 http://woodburnersmoke.net/new_zealand.htm Water Quality  1.36 billion km3 of water on earth  97% is ocean water  2% is locked in glaciers  0.31% is stored in deep groundwater reserves  0.32% is readily accessible freshwater (4.2 million km3)  In the U.S., groundwater resources meet about 20% of water requirements 8 Water contamination  Contamination of surface and groundwater originates from two categories of pollution sources  Point sources  Entities that release relatively large quantities of wastewater at a specific location, like industrial discharges and sewer outfalls  Non-point sources  All other discharges, like agricultural and urban runoff, septic tank leachate, and mine drainage 9 Water contamination  Water contamination sources  Industrial  Municipal  Agricultural  Pesticides; Inorganic nutrients  Forestry  Disruption of the soil surface from road building and the movement of heavy machinery on the forest floor  Increases erosion of topsoil, the resulting additional suspended sediment in streams and rivers can lead to light blockage, reduced primary production in streams  Transportation-related  Oil spill 10 Wastes in the United States  Source of national industrial waste data  Major sources: EPA  Laws requiring data collection  Clean Air Act, RCRA, SARA, EPCRA  Private industrial involved in data compilation activities  American chemistry council and American Petroleum Institute 11 National Industrial Waste Databases 12 National Industrial Waste Databases 13 Non-hazardous industrial waste  Non-hazardous industrial waste is the largest contribution to national waste generation.  Roughly 12 billion tons of non-hazardous waste is generated and disposed by the U.S. industrial (U.S.EPA, 1988)  The largest industrial contributor to non-hazardous waste are manufacturing industries (7600 million tons/yr), oil and gas production (2095-3609 million tons/yr), and mining industry (>1400 million tons/yr)  Contributors of lower amounts are electricity generators, construction waste, hospital infectious waste, and waste tires. 14 Hazardous waste  Hazardous waste: residual materials having 15 greater than a threshold value of ignitability, reactivity, toxicity, or corrosivity.  The costs of managing, treating, storing, and disposing of hazardous waste is much higher than non-hazardous waste.  The rate of industrial hazardous waste generation in the U.S. is ~750 million tons/yr, which is 1/16 the rate of non-hazardous waste generation by industry (Raker and Warren, 1992)  Hazardous waste contains over 90% by weight of water Toxic Releases  Toxic releases are reported separately due to their 16 potential to adversely affect human health and the health of the environment.  ~650 chemicals are reported through the U.S. EPA in the Toxic Chemical Release Inventory (TRI)  Facilities must report releases of toxic chemicals to the air, water, and soil, as well as transfers to off-site recycling or treatment, storage, and disposal facilities.  The total releases and transfers reported to the TRI in 2008 were 2 million tons. Summary  Design for energy efficiency, mass efficiency, and low environmental emissions. 17 IEEN 5303 Fundamental of Sustainable Engineering Introduction to Sustainable Engineering Instructor: Hua Li 1 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering 7/12/2013 Introduction  Sustainable Development (SD)  A principle that economic development should meet the needs of the present without compromising the ability of future generations to meet their own needs. The essence is to recycle, reuse, and reduce material service and protect global environment  Industrial Ecology (IE)  A strategy or practical approach to sustainability. The decision making of industrial production should take the operation of the ecosystem as a model to formulate a close loop for substances and materials. The principle of Industrial Ecology is to construct mass conservation. 2 Sustainable Manufacturing  Sustainable Manufacturing  Apply SD and IE to manufacturing to reengineer product design, manufacturing processes and system development to efficiently utilize energy, raw materials, and reactant to minimize the pollutants and to support the sustainable development of the mankind. 3 Sustainable Manufacturing  “Sustainable manufacturing is defined as the creation of manufactured products that use processes that minimize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers and are economically sound.” — U.S. Department of Commerce Definition 4 Industry and the Environment Sustainable • Focus on greening the manufacturing process Manufacturing Clean • Making products that improve Technology the environment Manufacturing Green Product • Designing a product to be more sustainable over its lifecycle Design Industry holds a unique position in affecting environmental impacts Drivers of Sustainable Business Resources • Energy, raw material and water consumption • Make up significant share of company cost pressures Regulation • Environment and health-related regulatory compliance costs Retail • Retailer sustainability policies • Help reduce environmental footprint of products sold and enhances marketability/brand image Addressing 3R Drivers 6 Profitability Challenge: Finding Value Competitive Advantage:  Value Chain GHG tracking tools  Sustainability training  Green supplier monitoring  Green buildings/plants  Design products for Sustainability  Renewable energy Reduce Costs:  Waste management  Energy management  Production efficiencies Regulatory Compliance:  Address “end of pipe” issues  Safety, permitting, auditing, pollution prevention  Etc. Maturity 7 Some Examples of Sustainable Manufacturing Topics          Life Cycle Sustainable Manufacturing Decision-Making Energy-efficiency Renewable Energy Use Water-efficiency Supply Chain and Sustainable Purchasing Product Certification – e.g., SMaRT Certification Market Analysis for New Products or Services Strategic Sustainability Planning And More 9 Sustainable Manufacturing American Regional Tours (SMART)  Goal: To raise awareness of the benefits of sustainable manufacturing practices  Entails Commerce-led tours of U.S. manufacturing facilities  Closes the “familiarity gap” – show companies what “going green” entails 10 Drivers of Sustainable Engineering  Two major national economic backbone industries are targeted:  Electronic Industry:  AT&T, Dell, HP, Intel, Applied Materials, Motorola  Automobile Industry:  Big-Threes and suppliers  Typical product:  Computers  Cell Phone  Vehicles 11 Background – Challenges      12 Wide diffusion of IT products Shortened product life cycle Hazardous material composition and complex structure Complicated manufacturing process, Hard to recycle /dispose Life Cycle Mismatch  Shortened product life cycle (from 7 to 2.5 years), leads to product life cycle mismatch 10 ife on l e cycl cti Life cycle Fun Pe rfo rm an ce life cyc 13 00 95 year 90 85 80 le Summary  Sustainable engineering is  an emerging and popular topic in today’s engineering education practices.  As a future engineer, do you understand what is sustainable engineering?  What is low carbon manufacturing?  What methodologies and tools are used in today’s industry practices for sustainability?  What are the future trends in this area? 14 IEEN 5303 Fundamental of Sustainable Engineering Global Policies on Sustainability and the Future Instructor: Hua Li 1 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Motivation for Regulations  The foundation for any environmental activity at an industrial facility includes compliance with relevant local, state, national and international regulation, and adherence to voluntary environmental standards.  Environmental regulation exists to explicitly address the potential conflict between ecosystem health and human activity.  The products of industry are typically seen as enhancing quality of life, the by-products of industry activity can threaten environmental integrity and human health. 2 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Motivation of Regulation  Most governments use environmental regulation to control industrial pollution, manage natural resource use, and preserve habitats.  Regulation aimed at controlling industrial pollution is designed to minimize both the immediate and longer term effects of exposing humans and environmental systems to these pollutants. 3 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Setting Regulation Goals  The exact way in which a country enacts its environmental policy varies.  The actual mechanics of developing guidelines for industry, imposing them, and enforcing them differs from country to country  General Goals:  A health or environmental problem must be identified. Once a connection is made between a problem and a specific activity, a decision may be made to restrict that activity.  Once environmental quality targets are set based on health and environmental considerations, they must be translated into specific guidelines for industry.  The standards applicable to an individual industrial facility are typically contained in one or more permits. If industrial facilities operate within their permit limits, environmental quality targets should be met.  Adjustments are made either to permit requirements or to environmental quality targets when the desired results are not achieved, or when new information on environmental impacts becomes available. 4 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Setting Regulatory Goals  In U.S., the approach taken is primarily regulatory  Congress passes laws that establish relatively broad goals for environmental protection.  The EPA is authorized to put these laws to work by creating more specific regulation.  In Netherland, environmental quality targets are established by government but specific pollution targets for industry are negotiated between industry sectors and government authorities.  Industry sectors enter agreements, known as “covenants”, with government bodies.  A covenants specifics emissions reduction targets, and timeframes for achieving them, but leaves the decision about how to obtain emissions reduction up to industry.  Covenants do not replace environmental legislation, but they do establish a consensual process between government and industry as the primary tool in environmental management 5 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering The United States: An Example of A Primarily Regulatory Approach  The U.S. regulatory framework for environmental protection, developed after the formation of the federal EPA in 1970.  Key features:  The core of environmental regulation is founded on a “command and control” approach.  It treats industrial emissions to different media separately. 6 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering The United States: Key Features  The core of environmental regulation is founded on a “command and control” approach.  The EPA sets detailed requirements for industry and ensures these requirements are met by inspecting facilities and punishing offenders with civil, or even criminal, penalties.  Regulation issued under this command and control approach is prescriptive. It either specifies pollution control equipment (known as Best Available Technology), that must be used by facilities in a given industry or it defines maximum permissible emissions levels for particular pollutants  To comply with this type of regulation, many companies focus on the installation and operation of “end-of-pipe” pollution control equipment  Little incentive exists within a command and control regulatory framework to improve production processes so they produce less waste. 7 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering The United States: Key Features  It treats industrial emissions to different media separately.  In other words, distinct legislation, permits, and enforcement actions are used to manage emissions to air, water and land.  Rather than treat the manufacturing facility as a unit and examine its overall environmental impact, media-segmented regulation encourages environmental managers to compartmentalize their efforts, possibly shifting pollution from one media to another. 8 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering The United States: Key Features  Summary:  Adversarial command-and-control regulatory climate  Emphasis on technological end-of-pipe emissions controls rather than process redesign  Media-segmented approach  Clean Air Act  Clean Water Act  Resource Conservation and Recovery Act  Comprehensive Environmental Response, Compensation, and Liability Act  Emergency Planning and Community Right-to-Know Act  Other Federal Legislation and State Regulations 9 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)  The CERCLA of 1980, commonly known as Superfund, provides a fund to clean up uncontrolled or abandoned hazardous waste sites contaminated because of former industrial activity, spills, or accidents.  The CERCLA authorizes EPA to force the parties responsible for the contamination to clean it up, or to pay the Superfund for the costs incurred by EPA in the course of a clean-up.  The CERCLA also sets up a process for prioritizing sites for clean-up. 10 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)  CERCLA differs in two important ways from other environmental legislation.  It addresses past environmental damage rather than the mitigation of current pollution.  It puts the EPA into a new role as a manager and coordinator of environmental clean-up, as well as maintaining its traditional role as regulator.  Because the process of cleaning up a contaminated site can involve significant legal activity, Superfund is regarded as potentially one of the most costly pieces of environmental legislation for industry.  The average cost of a Superfund site clean-up (not including the cost of litigation) has been estimated at $30 million 11 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Emergency Planning and Community Right-to-Know Act (EPCRA)  EPCRA, also known as SARA Title III, was created as part of the Superfund Amendments and Reauthorization Act (SARA) of 1986.  EPCRA requires that each state develop a State Emergency Response Commission (SERC) and appoint Local Emergency Planning Committees (LEPC)  Each of these types of committees are comprised of emergency responders (firefighters, health officials), government officials, media representatives, community groups, and representatives of industrial facilities. 12 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Emergency Planning and Community Right-to-Know Act (EPCRA)  Any industrial facility that stores or manages chemicals is responsible for informing the SERC and LEPC if it has greater than a reportable quantity of specified response coordinator and it must provide local officials with information to be used in the case of a spill or release.  A second significant aspect of EPCRA is that it introduces into federal environmental regulation a provision for making information on chemical use and release publicly available.  Each year, manufacturing facilities must report on their releases and transfers of some 600+ chemicals.  These detailed reports include the chemical name and the quantity released to various media (air, water, land) or transferred off-site (e.g., for hazardous waste treatment or recycling).  The reports are made available to the public as the Toxic Release Inventory (TRI). 13 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Other Federal Legislation Relevant to Industrial Environmental Practice  Toxic Substances Control Act (TSCA)  It does not govern the release or disposal of toxic substances but it does influence how such substances are manufactured and used.  Any new chemical that is not listed in TSCA’s inventory must go through a premanufacture notice (PMN) process before it can be manufactured or imported.  The PMN must identify the chemical and provide available data on its health and environmental effects. If these data are insufficient, the EPA may restrict the use of the chemical.  Oil Pollution Act (OPA)  The OPA establishes a fund to be used to finance the clean-up of oil spills if the responsible party is unable to do so.  It also requires that oil storage facilities and transportation vessels establish and provide to the government emergency response plans for dealing with large oil spills. 14 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering State Regulations  National law related to the environment sets the minimum level of regulated performance for a product or facility.  States are free to enact more restrictive legislation if they deem it appropriate.  The most active state in this regard has been California  California trends to set more restrictive emissions regulations for vehicles than does the national government, as well as to regulate emissions of a variety of consumer products such as paints and solvents. 15 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering The Enforcement of U.S. Environmental Regulations  State agencies administer and enforce federal environmental regulation in most states, and they are responsible for performing several distinct monitoring and enforcement activities.  They ensure a new facility or process can meet the requirements of its various permits. This is known as initial compliance. Failure to meet initial compliance results in either a fine to the owner of the facility or a denial of permission to operate until the permit requirements are met.  State agencies monitor facilities for continuing compliance—is the facility still operating within its permits? Most states actually reply on selfmonitoring by industrial facilities of their water and air emissions.  A final monitoring task that falls to the state agencies is the measurement of ambient environmental standards. This type of monitoring does not concern itself with particular sources of discharge but instead focuses on the overall quality of water and air in a region 16 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Voluntary Programs and Negotiated Agreements  EPA has initiated several new programs that fall outside the command and control regulatory model. These programs fall into two categories: voluntary programs and negotiated agreements.  Voluntary programs are developed by government agencies around a specific goal, such as toxic emission reduction or energy conservation, and companies are recruited to participate.  The companies in turn receive public recognition and technical assistance. One of the best known voluntary programs is the 33/50 program with about 1300 companies joining to reduce emissions of 17 toxic chemicals by 33% by 1992 and 50% by 1995.  Negotiated industry-government agreements differ from voluntary programs because they are developed jointly through cooperation between government and an individual company or industry sector.  A Memorandum of Understanding (MOU) signed by EPA and each participating company lays out the intention of the agreement, its goal, and what each party is responsible for. 17 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering International Agreements  Two broad categories of international agreements influence industry’s actions towards the environment.  The first category includes international environmental agreements negotiated between governments with the explicit purpose of protection species or habitats, or restricting the transport and release of hazardous materials.  The Convention on International Trade in Endangered Species (CITES)  The second category are trade agreements  The World Trade Organization (WTO)  Regional blocs also influence environmental policy within their boundaries.  The European Union 18 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Industry-Generated Approaches  Industry-Generated Commitments  It is unilateral initiatives developed by a single company or an industry association  The company or group of companies makes a public declaration of environmental goals they plan to meet or new practices they plan to implement.  Typically these actions are beyond what is required for compliance with environmental legislation, but they may be motivated by new or anticipated regulation.  Responsible Care  Management System Standards  The international Organization for Standardization (ISO) 19 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Introduction to WEEE & RoHS The European Union (EU) directives 2002/96/EC WEEE (Waste Electrical and Electronic Equipment) and 2002/95/EC RoHS (Restrictions in the use of Hazardous Substances) were to be fully implemented by August 2005 and July 2006 respectively. The directives apply to electrical and electronic equipment designed for use with a voltage rating not exceeding 1,000 volts for alternating current and 1,500 volts for direct current. The requirements of these directives are applicable to the Member States of the European Union. Introduction to WEEE & RoHS What is RoHS? The purpose of the directive is to restrict use of hazardous substances in electrical and electronic equipment and to contribute to the protection of human health and the environmentally sound recovery and disposal of waste electrical and electronic equipment. What is WEEE? The purpose of WEEE directive is, as a first priority, the prevention of waste electrical and electronic equipment, and in addition, the reuse, recycling and other forms of recovery of such wastes so as to reduce the disposal of waste. Introduction to WEEE & RoHS How are RoHS and WEEE related? Both the directives apply to the same type of equipment (Electrical and Electronic Equipment). The RoHS directive provides the elimination upfront (during the design stage) of certain hazardous materials in electrical and electronic equipment (EEE). The WEEE directive provides for the selective collection, treatment and other forms of recovery and disposal of waste electrical and electronic equipment. Introduction to WEEE & RoHS What comes after WEEE & RoHS? ― REACH Registration, Evaluation, Authorization and restriction of CHemicals (REACH) is a new European Union Regulation, EC/2006/1907 of 18 December 2006. REACH addresses the production and use of chemical substances, and their potential impacts on both human health and the environment. REACH has been described as the most complex legislation in the Union’s history, and the most important in 20 years. It is the strictest law to date regulating chemical substances and will impact industries throughout the world. RoHS Restricted Materials Six restricted materials in RoHS Material & Toxicological Profile (pdf) Maximum Concentration Lead (Pb) 0.1% by weight Mercury (Hg) 0.1% by weight Cadmium (Cd) 0.01% by weight Hexavalent Chromium (Cr-VI) 0.1% by weight Polybrominated Biphenyls (PBB) 0.1% by weight Polybrominated Diphenyl Ethers (PBDE) 0.1% by weight PBB and PBDE are flame retardants used in several plastics. RoHS Product Compliance Categories ANNEX 1A (WEEE Directive 2002/96/EC) *see Annex 1B (Appendix) for further details Both these directives apply to equipment as defined by ANNEX 1A of the WEEE directive. The following numeric categories apply: 1. Large household appliances 2. Small household appliances 3. IT and telecommunications equipment 4. Consumer equipment 5. Lighting equipment 6. Electronic and electrical tools 7. Toys, leisure, and sports equipment 8. Medical devices 9. Monitoring and control instruments 10. Automatic dispensers Global RoHS-like Legislations Geographic Spread of RoHS Global RoHS-like Legislations Europe-RoHS WEEE The Waste Electrical and Electronic Equipment (WEEE) directive (2002/96/EC) In force August 13, 2005 The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (2002/95/EC) In force July 1,2006 Global RoHS-like Legislations China – RPCEP Regulation for Pollution Control of Electronic Products (RPCEP) In force July 1, 2006 RPCEP applies to electronic information products and parts made with electronic information technology only, a much smaller list than that of the EU however it is comprehensive with no exemptions unlike the European directives with list broad categories with large groups of exemptions. As a result, the Chinese directive is much less complicated. • Products restricted by the RPCEP • Marking requirements • Testing and certification • Imports into China • Labeling requirements Global RoHS-like Legislations Japan – JGPSSI Japan Green Procurement Survey Standardization Initiative (JGPSSI) In force July 1, 2006 The Objectives of this law are also referred to as Design for Environment (DfE): 1. Rationalize Use of Raw Material. 2. Use recyclable resources and reusable parts. 3. Promote long term use of Products JGPSSI Product Compliance Categories―8 Products of Interest Computers, Televisions, Refrigerators, Copiers, Washers, Dryers, Microwaves, Air Conditioners Global RoHS-like Legislations United States United States of America does not have a federal law regulating hazardous substances, individual states are working on implementing their own and one already has: California. SB20 & SB50 Electronic Waste Recycling Act (EWRA): California, USA In force January 1, 2007 • • • • • • • • Devices covered under EWRA Cathode ray tube containing devices Cathode ray tubes (CRTs) Computer monitors containing CRTs LCD screens LCD containing desktop monitors Televisions containing CRTs Televisions containing LCD screens Plasma televisions • • • • Restricted Materials Lead Cadmium Mercury Hexavelent chromium Global RoHS-like Legislations It is estimated that, by 2010 most developed countries will have adopted RoHS. RoHS & WEEE Impacts Which companies are affected? The RoHS Regulations affect your business if you:      Manufacture electrical and electronic equipment (EEE) Recycle EEE Import EEE into the EU Export EEE to other EU member states, Norway, Liechtenstein or Iceland Rebrand other manufacturers’ EEE as your own product RoHS Decision Tree The British Department of Trade and Industry (DTI) web site includes a non-statutory guidance document for the RoHS Directive. This decision tree is taken from the guidance notes and is helpful in assessing whether your product is covered by the RoHS Directive. IEEN 5303 Fundamentals of Sustainable Engineering Risk and Life-Cycle Frameworks for Sustainability Dr. Hua Li Dept. of Mechanical & Industrial Engineering Texas A&M University – Kingsville Introduction  Sustainability issues are complex and are needed to be analyzed with complex engineered systems.  Risk-based frameworks  Is used in the characterization and prioritization of environmental issues  Life-cycle frameworks  is used for characterizing and understanding sustainability 2 Risk  Risk is the potential for an individual to suffer an adverse effect from an event.  Environmental risks  Risks involving voluntary exposure  Activities done for a living or for enjoyment (firefighting, skydiving, mountain climbing, bungee cord jumping)  Risk associated with natural disasters  Floods, hurricanes, earthquakes…  Risks involving involuntary exposure  An individual release a compound into the environment (pesticides, known carcinogens), potentially harming workers or members of public, who cannot directly control the exposure 3 Environmental Risk  Environmental risk is a function of hazard and exposure  Environmental risk= f (hazard, exposure)  Environmental risk assessment is used to quantitatively determine the probability of the adverse effects of environmental releases.  Evaluate human health and ecological impacts of chemical releases to the environment.  Information collected from environmental monitoring is incorporated into models of worker activity, and estimates the likelihood of adverse effects.  The results from environmental risk assessment are then incorporated into the decision-making process. 4 5 6 7 Risk Assessment  Risk assessment framework is developed in 1983 by the National Research Council (NRC) and updated in 2009.  It consists of four major components:  Hazard assessment  Dose response  Exposure assessment  Risk characterization 8 Risk Assessment framework 9 Risk Assessment Process  Proceeding with testing for health effects  Evaluating the effectiveness of engineering controls, to limit exposure to chemicals, and personnel protective equipment  Defining the degradation kinetics and decomposition products of a waste stream and the impact of the chemical waste and its degradation products on local flora and fauna 10 Risk Management  If it is reasonable clear from the risk assessment that a risk exists, the next step is risk management.  Risk management is the process of identifying, evaluating, selecting , and implementing actions to reduce risk to human health and to ecosystems. The goal of risk management is scientifically sound, cost-effective, integrated actions that reduce or prevent risks while taking into account social, cultural, ethical, political, and legal considerations (Presidential commission, 1997) 11 Risk Management  Risk management must answer many questions, some of which are:  What level of exposure to a chemical risk agent is an     unacceptable risk? How great are the uncertainties and are there any mitigating circumstances? Are there any trade-offs between risk reduction, benefits, and additional cost? What are the chances of risk shifting, that is, shifting risk to other populations? Are some of the risks worse than others?  The answers to these questions can depend on culture and values 12 Risk-Based Environmental law  Many of the environmental laws are based on risk frameworks. 13 Table 2-2 cont’d 14 IEEN 5303 Fundamentals of Sustainable Engineering Risk and Life-Cycle Frameworks for Sustainability Dr. Hua Li Dept. of Mechanical & Industrial Engineering Texas A&M University – Kingsville © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Review  Risk-based frameworks  Is used in the characterization and prioritization of environmental issues  Life-cycle frameworks  is used for characterizing and understanding sustainability  Environmental risk is a function of hazard and exposure  Environmental risk= f (hazard, exposure) 2 Life-Cycle Frameworks  Language of life-cycle assessment  Tools used to quantify life-cycle impacts  Use of life-cycle assessment  Case studies 3 Defining Life Cycles Product Process 4 Life-cycle Assessment  Life-cycle assessment (LCA) is the most complete and detailed form of a life cycle study.  It consists of four major steps  Step 1. Determine the scope and boundaries of the 5 assessment  Step 2. Inventory the outputs and inputs that are used during the life cycle  Step 3. Assess the environmental impacts of the inputs that outputs compiled in the inventory. (lifecycle impact assessment)  Step 4. Interpret the results of the impact assessment, suggesting improvements whenever possible Life-cycle Assessment  Step 1. Determine the scope and boundaries of the assessment  Identify the reasons for conducting the LCA  Identify the product, process, or service  Choose a function unit for that product  Make choices regarding system boundaries 6 Life-cycle Assessment  System boundaries: are the limits placed on data collection for the study.  Example, during the 1990s the U.S. EPA began its Green Lights Program, replace incandescent bulbs with fluorescent bulb. 7 Life-cycle Assessment  The choice of system boundaries can influence the outcome of a LCA.  A narrowly defined system requires less data collection and analysis but may ignore critical features of a system.  In a practical sense it is impossible to quantify all impacts for a process or product system.  What is included in the system and what is left out are often based on engineering judgment and a desire to capture any parts of the system that may account for 1% or more of the energy use, raw materials use, wastes, or emissions. 8 Life-cycle Assessment  The choice of functional unit is especially important when LCA are conducted to compare products. Since it is necessary for determine equivalence between choices.  Example, a functional equivalence of two plastic grocery sacks to one paper sack.  Life time  Example, a cloth grocery sack may be able to hold only as many groceries as a plastic sack but will have a much longer use during its lifetime. 9 Functional units 10 Functional units 11 Life-cycle Assessment  Step 2. Inventory the outputs (such as products, by- products, wastes, and emissions)and inputs (such as raw materials and energy ) that are used during the life cycle  Time-consuming and data-intensive 12 Life-cycle inventory example 13 Life-cycle inventory example (cont’d) 14 Life-cycle inventory example 15 16 Life-cycle assessment  Step 3. Assess the environmental impacts of the inputs that outputs compiled in the inventory. (lifecycle impact assessment)  Natural resource use, such as energy use and water use  Environmental impacts, such as acid deposition, smog formation, and solid waste generation  Social impacts, such as employment  Calculating impacts can facilitate comparisons between different products or materials. 17 18 19 20 21 Life-cycle assessment  Step 4. Interpret the results of the impact assessment, suggesting improvements whenever possible  Compare products, recommend the most environmentally desirable product  Analyze single product, suggest specific design modifications that could improve environmental performance  This step is called an improvement analysis or an interpretation step. 22 LCA tools  Quantitative tools of LCA  Process-based analysis tools  Input-output analysis tools 23 References  Sustainable Engineering: Concepts, Design and Case Studies, Allen, David T. and Shonnard, David R., 2012, Prentice Hall 24 IEEN 5303 Fundamentals of Sustainable Engineering Environmental Law and Regulation Instructor: Dr. Hua Li Dept. of Mechanical & Industrial Engineering Texas A&M University – Kingsville © Hua Li IEEN 5303 Fundamentals of Sustainable Engineering Introduction  Engineers practice a profession and are required to obey specific 2 laws governing their professional conduct.  These laws are designed to protect human health, natural resources, and the environment by placing limits on the quantity, chemical makeup, and the methods of disposal of environmental release and wastes.  Restrict releases into the air and water  Restrict the manner in which hazardous waste is stored, transported, treated, and disposed  Liability on the generators of hazardous waste, requiring responsible parties to clean up sites that become contaminated  Requirement to manufacturers to introduce a new substance into the marketplace  International agreements that seek to preserve the sustainability of global resources References  Review of environmental law by Lynch (1995)  Green Engineering (chapter 3, Allen and     3 Shonnard, 2002) United States Code (U.S.C.) Code of Federal Regulations (C.F.R.) The Environmental Law Handbook (Sullivan and Adams, 1997) West’s Environmental Law Statues (West Law School, 2011) The Growth of Environmental Law 4 Environmental Laws and Regulations  The sources of environmental laws and regulations are legislatures, administrative agencies, and the courts.  Federal and state legislatures often use vague language regarding specific regulatory requirements, discharge limits, and enforcement provisions.  Administrative agencies are in charge of the detailed development of regulations. 5 Environmental Laws and Regulations  Administrative agencies, such as the EPA, give meaning to the statutory provision through a procedure know as rule making  Publish proposed regulations in the Federal Register, providing an opportunity for public comment  Publish final regulation in the Federal Register, which have the force of law  Administrative agencies can be created as part of the executive, legislative, or judicial branches of government. 6 Environmental Laws and Regulations  The courts are the third government actor that helps to define the field of environmental law.  Determine the coverage of environmental statues (which entities are subject to the regulations)  To review administrative rules and decisions (ensuring that regulations are properly promulgated and within the statutory authority granted to the agency)  To develop the common law system (a record of individual court cases and decisions that set a precedent for future judicial actions) 7 Nine Prominent Federal Environmental Statutes  This section provides the key provisions of nice federal environmental statues. Taken together, these laws regulate materials and products throughout their life cycle, from creation and production, to use and disposal.  1-3: Regulations of chemical manufacturing  4-6: Regulations of discharges to the air, water and soil  7 -9: Cleanup, emergency planning, and pollution prevention 8 9 10 11  A more complete description of these statues in included in the appendix to this chapter. P77-88 in Sustainable Engineering: Concepts, Design and Case Studies, Allen, David T. and Shonnard, David R., 2012, Prentice Hall 12 Pollution Prevention Concepts and Terminology  A logical starting point for understanding pollution prevention concepts is the waste management hierarchy established in the Pollution Prevention Act of 1990. The waste management hierarchy is defined as follows (42 U.S.C. 13101(b)) 13 Pollution Prevention Concepts and Terminology  Based on this definition, the waste management hierarchy can be placed in the following descending order, from the most to the lease preferable:  Source reduction  In-progress recycle  On-site recycle  Off-site recycle  Waste treatment  Secure disposal  Direct release to the environment 14 Pollution Prevention Concepts and Terminology  Pollution prevention: Any act of source reduction, 15 in-process recycle, on-site recycle, and offsite recycle that reduces the amounts of releases and the hazardous characteristics of those releases which ultimately reach the environment.  Source reduction: any modification of a manufacturing process or of production procedures which reduces the amount of components entering a waste stream or the hazardous characteristics of those components entering waste streams prior to recycle, treatment, or disposal. Pollution Prevention Concepts and Terminology  In-process recycle: is the recovery and return of 16 components that would otherwise become waste to the process unit where these components were generated, usually immediately after they are generated. Examples would be unconverted reactants leaving a reactor that are separated and returned to the reactor inlet.  On-site recycle: is the recovery of valuable stream components using process units within the same facility where those components were generated.  Off-site recycle: is the recovery of valuable components at a remote location from waste streams generated at a facility and the return of the valuable components to the facility Pollution Prevention Concepts and Terminology  Waste treatment: Any process that renders a waste stream less hazardous prior to disposal or direct release through physical, biological, or chemical means. Examples are primary, secondary, and tertiary wastewater treatment, adsorption of volatile organic compounds from air, and landtreatment of petroleum hydrocarbon sludges from tank bottoms.  Secure disposal: Long-term isolation of raw or treated waste components in a secured landfill. Examples include landfills for domestic and industrial hazardous and non-hazardous waste. 17 Pollution Prevention Concepts and Terminology  Direct release: The direct release of components from processes to the air, land, or water. An example of this includes the release of volatile organic compounds from fugitive emission sources in chemical or petroleum refinery processes (from valves, fittings, pumps, flanges, connectors, etc.) 18 Environmental Law and Sustainability  Laws are limited in extend by political boundaries, while environmental degradation is not.  Agenda 21 is a plan of action for promoting sustainability, adopted by more than 170 governments at the United Nations Conference on Environment and Development (UNCED).  The United Nations (UN) Commission on Sustainable Development was created to ensure effective follow-up on UNCED. 19 References  Sustainable Engineering: Concepts, Design and Case Studies, Allen, David T. and Shonnard, David R., 2012, Prentice Hall 20 IEEN 5303 Fundamentals of Sustainable Engineering Economic Input Output Model Instructor: Hua Li 1 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering OUTLINE Alternative LCI method: Economic input-output (EIO) analysis The Economic Input-Output Life Cycle Assessment (EIO-LCA) method estimates the materials and energy resources required for, and the environmental emissions resulting from, activities in our economy. 2 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Economic input-output model EIO model is based on Wassily Leontief’s model of an economy as a matrix describing economic transactions between sectors. (Nobel prize in economic science in 1973 )  Input-output depicts inter-industry relations of an economy. It shows how the output of one industry is an input to each other industry. Leontief put forward the display of this information in the form of a matrix.  3 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Definition of GDP • GDP = Gross Domestic Product • It is a measure of a country’s overall official economic output. It is the market value of all final goods and services officially made within the borders of a country in a year. (from wikipedia) • GDP=C+I+G+X-M • C: Consumption • G: Government spending • M: Imports 4 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering I: Investment X: Exports Final Demand & GDP  5 ‘Final Demand’ is the part of gross domestic product (GDP) which is consumed. The remaining part of GDP is either exported or remains as the inventory on hand. The final demand includes categories like households, governments, changes in investments, stocks etc. Thus it is the integral part of GDP. © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Final Demand & GDP  The curve is sloping downward, indicating that there is an inverse proportion between the price level and amount of goods and services demanded. As prices go up, demand for the product decreases. Also at lower prices, greater quantity is demanded.The figure below shows the final demand curve. 6 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Transactions Table Input to sectors Output from sectors 1 2 3 n Intermediate input I Value added V Total input X ∑ Xij + Fi = Xi; ∑(Aij*Xj) + Fi = 1 X11 X21 X31 Xn1 I1 V1 X1 2 X12 X22 X32 Xn2 I2 V2 X2 3 X13 X23 X33 Xn3 I3 V3 X3 n X1n X2n X3n Xnn In Vn Xn Intermediate output O Final demand F Total output X O1 O2 O3 On F1 F2 F3 Fn X1 X2 X3 Xn Xi = Xj; using Aij = Xij / Xj Xi in vector/matrix notation: A*X + F = X => 7 F = [I – A]*X © Hua Li IEEN 5303 Fundamental of Sustainable Engineering or X = [I – A]-1*F GDP Transactions Table  An array of row vectors, typically aligned below this matrix, record non-industrial inputs by industry like payments for labor; indirect business taxes; dividends, interest, and rents; capital consumption allowances (depreciation); other property-type income (like profits); and purchases from foreign suppliers (imports). At a national level, although excluding the imports, when summed this is called “gross product originating” or “gross domestic product by industry.“  Another array of column vectors is called “final demand” or “gross product consumed“.This displays columns of spending by households, governments, changes in industry stocks, and industries on investment, as well as net exports. 8 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Complete Transactions Matrix 9 Sector 1 Sector 2 Final Demand Total Output Sector 1 150 500 350 1000 Sector 2 200 100 1700 2000 Value Added 650 1400 GDP 2050 Total Input 1000 2000 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Two Sector Numerical Example  Reading across: Sector 1 provides $150 of output to sector 1, $500 of output to sector 2, and $350 of output to consumers.  Reading down: Sector 1 purchases $150 of output from sector 1, $200 of output from sector 2, and adds $650 of value to produce its output Transaction Flows ($) are at right. 10 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering 1 2 Final Demand 1 150 500 350 2 200 100 1700 Value Added 650 1400 2050 Requirements Matrix  Creating the A matrix Aij = Xij / Xj  So, to make $1 of output from sector 1 requires $0.15 of output from the same sector. 11 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Production of Good 1 $ 0.15/$ Good 1 $ 1 Good 1 Sector 1 $0.2/$ Good 2 Sector 2 12 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering To produce $1 of output from sector one requires $0.15 of goods from the sector itself, plus $0.2 of goods from sector 2. Production of Good 2 Sector 1 To produce $1 of output from sector two requires $0.05 of goods from the sector itself, plus $0.25 of goods from sector 1. $0.25/$ Good 2 $ 0.05/$ Good 2 Sector 2 13 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering $ 1 Good 2 Leontief Inverse 1 0 0.15 0.25 0.85 − 0.25 − = 0 1 0.20 0.05 − 0.20 0.95  [I – A]  [I – A] -1 or X = [I – A]-1*F 14 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering 0.85 − 0.25 − 0.20 0.95 −1 1.254 0.33 = 0.264 1.122 Add Final Demand  Determine the effects of $100 additional demand from Sector 1 X = [I – A] -1 F  Total Outputs: $125.4 of Sector 1 and $26.4 of Sector 2, or $ 151.8 Total.  Direct intermediate inputs: $15 of 1 and $20 of 2 for $100 output of 1 (or $ 135) 15 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering 1.254 0.33 100 X= 0.264 1.122 0 125.4 X= 26.4 EIO-LCA Model  If data are available on a particular emissions release from each sector of the economy, then a matrix R can be compiled to represent various releases (columns) per $ output from each sector (rows). Total additional emissions ∆b associated with additional final demand of ∆F can then be calculated as: 16 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering A EIO-LCA model developed by Carnegie Mellon University uses relatively recent and detailed economic data derived from Bureau of Economic Analysis (BEA) and publicly available environmental data from governmental agencies such as the U.S., Environmental Protection Agency (EPA) and the Department of Energy (DOE). It is capable of evaluating economic and environmental impacts for any of 426 industry sectors in the US economy. EIO-LCA Software 17 17 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering A Life Cycle Analysis of a Midsize Passenger Car  Vehicles are among our most important personal assets and liabilities, since they are typically the second most expensive asset we own, costing almost $50,000-100,000 over the lifetime of the vehicle. The entire life cycle of an automobile, from extraction of raw materials, material production, and vehicle manufacture through vehicle use to end-of-life, is an environmental and public health concern 18 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Vehicle Design & Development Raw Material Sources Vehicle Manufacture Fuel Distribution Vehicle Use Service Maintenance Fuel Production Primary Energy Sources Scrap Recycle 19 © Hua Li IEEN 5303 Landfill Fundamental of Sustainable Engineering Vehicle End-of -Life Waste Management Fixed Cost Life Cycle Assessment Method  20 Since the EIO-LCA model is focused on the manufacture and production of products and services throughout the economy, it is possible to formulate the life cycle of a complex product such as an automobile through the use of sectors in the model that approximate the vehicle life cycle stages shown in the flow diagram © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Vehicle Description 2002 Ford Taurus LX  3.0 liter 155 hp, V-6 engine with an EPA-rated fuel economy of 20 mpg city, 28 mpg highway, and 23 mpg combine city/highway.  3,336 lbs  MSRP $19,035 ($2002)  21 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Boundary of the analysis  Considered stages:  automobile manufacture and, over the vehicle lifetime, purchase of fuel (regular grade gasoline), maintenance and service, and fixed costs (including insurance, license fees, and depreciation).  Not considered stage:  Vehicle end-of-life (not included in the EIO-LCA model)  Functional unit  The vehicle and its entire lifetime of operation 22 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Application of the EIO-LCA Model  The first step in the life cycle inventory is to match each of vehicle life cycle stages with an EIO-LCA sector EIO-LCA Sector name EIO-LCA Sector No. Final demand (1997$) Vehicle Manufacture Automobiles and light truck manufacturing 336110 16,009 Fuel cycle (gasoline) Petroleum refining 324110 5,700 Automotive repair and maintenance 8111A0 10,000 Insurance carriers 524100 15,000 N.A N.A. N.A. Life cycle stage Maintenance and repair Fixed costs: insurance only Vehicle operation 23 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Vehicle Manufacture Vehicle manufacture is represented by the motor vehicle and passenger car bodies sector. This sector is responsible for car body manufacture and assembly of final vehicles.  Ford base invoice price: $17,697 (2002$)   Subtract hold back: $17,126 (2002$)  Implicit price deflator results: 16,009(1997$) 24 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Vehicle Operation The EIO-LCA model does not have a sector that corresponds to the operation (driving) of the vehicle during its lifetime and therefore we employ supplementary methods to estimate the energy use, air pollutants, and other environmental burden associated with this LC stage.  The vehicle life time estimated based on the average annual miles traveled by vehicles and the expected median lifetime for an automobile (16.1 years) in the U.S. is calculated as 193,800 miles (Davis and Diegel 2002)  25 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Vehicle Operation • Energy Use Eop=(VMT × Ecmb)/ MHFE Eop: the operation energy of the vehicle VMT: lifetime vehicle miles traveled (193,800 miles) Ecmb: the combustion energy of the fuel (127,000Btu/gal) MHFE: metro-highway fuel efficiency (23.6 mpg) • Greenhouse Gases Eco2=VMT / MHFE × Ccontent × 44 /12 Eco2: emissions of CO2 for the vehicle lifetime in grams VMT: lifetime vehicle miles traveled (193,800 miles) Ccontent: Grams of carbon per gallon of fuel 44/12: convert from grams of carbon to grams of CO2 26 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Fuel Cycle • We approximate the fuel cycle through gasoline production by the input-output sector for petroleum refining. • To determine the final demand for the petroleum refining sector, we compute the monetary value of gasoline using the producer price per gallon: Taurus will use 8,212 gallons of gasoline over its lifetime Average retail price: $1.35 per gallon – federal and state tax (31%) – distribution and marketing costs and profits (13%) = Estimated producer price: $0.76/gallon • Lifetime fuel cost in 1997$ is $5,700 27 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Automotive Service  28 Because of the lack of complete data covering vehicle lifetime, we combine several sources to obtain an estimated lifetime service expenditure of $12,580 (1997$) (MacLean and Lave 1998), based on average service for the first 75,000 miles of the vehicle’s life. © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Fixed Costs Fixed costs include insurance, license fees, depreciation, and finance charges.  The economic impact and total resources consumed for fixed costs are obtained using the insurance carrier sector. Finance charges and license fees are assumed to have few supplier impacts and are not included in the environmental analysis.  An estimated insurance cost (2002$) of $1,014 per year is obtained from Davis and Diegel (2002), resulting in a lifetime insurance cost of $16,220 (2002$) or $14,897 (1997$). This assumes that insurance costs stay constant over the vehicle life time.  29 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Comparison of Life Cycle Stages Economic Impact  Energy Use  Greenhouse Gas Emissions  30 © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Economic Impact (1997$/vehicle lifetime) Economic Impact 31 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Suppliers Industry/Vehicle 30030 11679 10201 16131 9661 16853 10531 6272 Manufacture © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Petroleum Refining Repair Insurance Energy Use 1200000 Suppliers Industry/Vehicle Energy Use (MJ) 1000000 800000 600000 400000 200000 0 32 Manufacture Operation © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Petroleum Refining Repair Fixed Costs/Insurance Greenhouse gas emissions (kg CO2 per vehicle lifetime) Greenhouse Gas Emissions 33 Suppliers 80000 Industry/Vehicle 70000 60000 50000 40000 30000 20000 10000 0 Manufacture Operation © Hua Li IEEN 5303 Fundamental of Sustainable Engineering Petroleum Refining Repair Fixed Costs/Insurance Conclusions  34 The automobile sector is a major component of the economy, using large quantities of resources and discharging large amounts of residuals, Knowing the life cycle implications of particular designs and materials is essential for intelligent management and policy decisions. The results of the EIOLCA model and supplemental methods indicate that driving an automobile uses much more energy and results in higher quantities of greenhouse gas and conventional air pollutant emissions than producing or servicing the vehicle. © Hua Li IEEN 5303 Fundamental of Sustainable Engineering

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