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1-GSCM-2April-07-web

1-GSCM-2April-07-web - Perspective and goal of industrial...

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GSCM – Spring 2007 – Session 1 – April 3 Perspective and goal of industrial ecology Most environmental impacts are caused by the material transformation processes of the economy. To make good environmental decisions it is necessary to identify and assess all relevant environmental impacts of all relevant transformation processes. Process Economic outputs Environmental interventions Economic inputs Natural resources 1) 2) Impact assessment Product life cycle
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GSCM – Spring 2007 – Session 1 – April 3 • Industrial and consumer activities are process-based but agent-driven • One production and consumption system consists of many agents • Environmental impact is based on whole system performance (life cycle perspective) • Agents, however, usually base their decisions on criteria other than environmental ( e.g. economic performance ), which are applied to smaller sub-systems Environmental Economic or Other Performance Perspective Whole System Individual Agents (Sub-System) Driver Objective Industrial Ecology needs to have some idea who the actors in the industrial ecology are, and what motivates their actions. (Tim Jackson & Roland Clift, 1998, JIE, Vol. 2 No. 1) Limitations of IE Limitations of IE The Problem of Agency in Industrial Ecology: The Problem of Agency in Industrial Ecology:
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GSCM – Spring 2007 – Session 1 – April 3 Limitations of IE Limitations of IE One Life Cycle, many Actors – Environmental Objective, Economic Driver One Life Cycle, many Actors – Environmental Objective, Economic Driver End-of-life product disposal Product demand & use Raw materials mining Primary materials production Component manufacture Final product assembly Product sale and delivery Component re- processing Product re- processing Materials re- processing Eol product collection & inspection Arcelor (steel company) Xerox Inter Steel (steel broker) Take-back entrepreneur Nokia • Life Cycle Management - Objective: High environmental performance of the product system - Boundaries: Product Life Cycle • Economic agent - Objective: High financial performance of the business - Boundaries: Financial boundaries of the business
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