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Rationality of eco-efficiency methods: Is the BASF analysis dependent on irrelevant alternatives?

  • LIFE CYCLE MANAGEMENT
  • Published:
The International Journal of Life Cycle Assessment Aims and scope Submit manuscript

Abstract

Purpose

The paper aims at testing and improving the BASF eco-efficiency analysis (EEA) with regard to the rationality axiom “independence from irrelevant alternatives” (IIA). If this axiom is violated, rankings could be biased or influenced subjectively by the choice of considered alternatives.

Methods

We introduce an artificial yet realistic “irrelevant alternative” in an EEA case study and compare the ranking results. The different stages of the EEA are analysed to uncover the potential source(s) of the detected violation.

Results and discussion

The example proves the violation of the IIA rationality axiom in the EEA. It is shown at which stages and how the weights in the aggregation process have to be adjusted to avoid this shortcoming.

Conclusions

In specific constellations, the EEA may violate the IIA rationality axiom. By adequately adjusting the weights at certain stages of the aggregation process, this shortcoming can be avoided. Also, the results account for the relevance of basic principles derived from decision theory in the life cycle assessment/sustainability context.

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Notes

  1. In the following, instead of “products and processes” we will just use “products.”

  2. Except for the categories Emissions and Emissions to air. Due to their aggregated form, they are calculated based on the weighting factors (relevance and societal) of their subcomponents.

  3. Please note that the ranges of the sub-criteria POCP, Toxicity potential - deposit/disposal and Risk potential - pollution by traffic also do not change, but due to varying ranges of other sub-criteria, the final aggregated criteria ranges for Emissions, Toxicity potential and Risk potential do change.

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Authors and Affiliations

  1. School of Business and Economics, Chair of Business Theory: Sustainable Production and Industrial Control, RWTH Aachen University, Aachen, Germany

    Harald Dyckhoff, Amira Quandel & Katrin Waletzke

Authors
  1. Harald Dyckhoff
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  2. Amira Quandel
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  3. Katrin Waletzke
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Correspondence to Harald Dyckhoff.

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Responsible editor: Ivan Muñoz

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Dyckhoff, H., Quandel, A. & Waletzke, K. Rationality of eco-efficiency methods: Is the BASF analysis dependent on irrelevant alternatives?. Int J Life Cycle Assess 20, 1557–1567 (2015). https://doi.org/10.1007/s11367-015-0957-9

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  • DOI: https://doi.org/10.1007/s11367-015-0957-9

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