Transportation-focused Environmental Impact Assessment of U.S. Manufacturing: A Life Cycle Analysis IERC ’14, Montreal, Canada June 2nd, 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 Manufacturing and Transportation Nexus • Manufacturing Transportation Consumption • The U.S., manufacturing 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 Environmental impacts of U.S. manufacturing GHG Energy Water Toxic Release • 20% of total GHG emissions in the U.S. • The third largest industry after transportation and electric power industries (EPA, 2012) • The third leading sector in energy usage with a share of 20% (with a usage of 20 quadrillion BTU) • Power Generation and Farming industries account for 41% of total water withdrawals in U.S (Blackhurst et al., 2010). • Metal Mining, Food, Beverage, Tobacco, Primary Metals and Chemical Manufacturing sectors account for approximately 71% of all toxic releases (EPA, 2010) 3 Sustainable Manufacturing and Life Cycle Assessment Sustainable Manufacturing Life Cycle Assessment • “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) • 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 Life Cycle Assessment Toxics Carbon Solid Waste By Products Raw Material Extraction Manufacturing Use Disposal Recycling Re-use 5 Basic Life Cycle Assessment Methodology Impact Assessment Interpretation & Policy Making Life Cycle Inventory Goal & Scope Definition 6 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, 1-15. *Egilmez, G., Kucukvar, M., & Tatari, O. (2014).“Supply chain sustainability assessment of the U.S. food manufacturing sectors: A life cycle-based 7 frontier approach”, Resources Conservation and Recycling, Elsevier, Volume 82, January 2014, 8–20 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 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 manufacturing sectors with EIO-LCA Eco-efficiency ($/Environmental Impact) • Deriving the transportation sustainability score for each sector with Data Envelopment Analysis (DEA) 9 Goal and Method Goal • To develop an analytical approach that can be used to analyze and compare the sustainability performance of 53 U.S. manufacturing 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 Economic Input Output Life Cycle Assessment (EIO-LCA) Economic Input-Output Matrix $ Output Unit environmen tal output Unit economic output • Carbon Footprint • Energy Use • Water Footprint • Solid Waste • Toxic Releases • Land Use Automobile Mfg. Public Datasets $ Input Transportation Activities All Other Sectors Unit environmen tal output Unit economic input Iron and Steel Mills Motor Vehicle Parts Mfg. 11 Data Envelopment Analysis (DEA) • Input-oriented DEA multiplier model proposed by Charnes et al. (1978): • Notation 12 Life Cycle Inventory ID 1 2 3 4 5 6 7 8 • 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 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Manufacturing Sector Food manufacturing Beverage manufacturing Tobacco manufacturing Textile mills Textile product mills Apparel manufacturing Leather and allied product manufacturing Wood product manufacturing Pulp, paper, and paperboard mills Converted paper product manufacturing Printing and related support activities Petroleum and coal products manufacturing Basic chemical manufacturing Resin, rubber, and artificial fibers manufacturing Agricultural chemical manufacturing Pharmaceutical and medicine manufacturing Paint, coating, and adhesive manufacturing Soap, cleaning compound, and toiletry manufacturing Other chemical product and preparation manufacturing Plastics and rubber products manufacturing Nonmetallic mineral product manufacturing Foundries Forging and stamping Cutlery and handtool manufacturing Architectural and structural metals manufacturing Boiler, tank, and shipping container manufacturing Agriculture, construction, and mining machinery manufacturing Industrial machinery manufacturing Commercial and service industry machinery manufacturing HVAC and commercial refrigeration equipment manufacturing Metalworking machinery manufacturing Engine, turbine, and power transmission equipment manufacturing Other general purpose machinery manufacturing Computer and peripheral equipment manufacturing Semiconductor and other electronic component manufacturing Electronic instrument manufacturing Manufacturing and reproducing magnetic and optical media Electric lighting equipment manufacturing Household appliance manufacturing Electrical equipment manufacturing Other electrical equipment and component manufacturing Motor vehicle manufacturing Aerospace product and parts manufacturing Furniture and related product manufacturing Medical equipment and supplies manufacturing Other miscellaneous manufacturing Iron and steel mills and manufacturing from purchased steel Nonferrous metal production and processing Ordnance and accessories manufacturing Other fabricated metal product manufacturing Audio, video, and communications equipment manufacturing Motor vehicle body, trailer, and parts manufacturing Other transportation equipment manufacturing Total Impact of U.S. Manufacturing Carbon FP 34,253,538.0 3,503,109.0 711,638.2 2,076,271.3 1,439,865.6 1,240,575.7 Energy FP 484,826.5 49,386.5 9,967.6 29,152.2 20,121.6 17,304.2 Water FP 2,588,785.2 236,078.5 44,949.1 120,119.7 79,645.6 65,380.8 347,727.2 4,855.1 19,677.0 4,885,223.0 68,302.2 267,268.5 2,645,146.3 37,445.8 167,973.2 4,750,228.8 67,194.6 321,973.0 2,033,716.4 28,989.0 93,809.6 9,156,350.7 130,884.2 798,857.6 2,192,424.5 31,448.7 166,128.1 4,952,136.1 70,915.1 344,328.6 1,423,408.6 19,818.1 88,739.1 2,360,607.4 33,826.0 192,419.4 1,436,880.8 20,407.1 99,596.1 921,271.5 13,131.2 63,099.9 1,614,892.6 23,243.1 121,915.0 7,225,530.9 102,821.2 423,948.4 6,395,383.1 89,806.2 383,534.2 745,267.5 1,198,057.5 10,644.2 17,031.5 50,674.3 75,535.8 369,473.4 5,232.7 22,736.0 1,402,897.5 19,948.4 86,543.1 1,421,599.6 20,160.6 87,910.1 1,868,681.5 26,355.1 102,082.8 762,740.8 10,749.2 42,705.6 531,221.1 7,521.7 29,082.7 612,835.0 8,654.1 35,832.7 1,290,599.2 18,208.4 74,812.9 516,319.8 7,264.5 29,071.8 2,049,401.1 28,871.6 112,584.6 1,229,779.9 17,516.0 77,419.5 2,739,028.3 38,873.1 182,149.1 2,086,149.7 29,793.9 127,022.6 283,606.3 4,043.9 17,683.9 124,255.6 1,751.9 7,418.9 935,140.2 13,173.8 55,086.1 443,421.5 6,267.4 28,092.7 1,886,795.3 26,682.8 123,271.2 3,640,962.2 51,099.2 206,095.6 8,892,436.0 125,544.3 483,924.8 2,732,032.7 38,387.5 149,628.6 1,498,320.2 21,051.9 77,605.9 2,629,135.4 36,711.6 143,424.6 2,874,571.7 40,774.8 191,806.9 3,392,137.9 49,588.4 247,435.7 342,407.7 4,822.4 20,548.6 3,667,399.6 52,027.9 215,586.3 1,698,673.7 24,234.7 101,142.1 5,793,684.1 81,766.0 347,315.9 1,543,484.8 21,386.1 90,090.2 156,768,442.8 2,219,985.9 10,330,548.2 13 LCI by GHG Emissions (ton CO2-eqv.) Food manufacturing Petroleum and coal products manufacturing Aerospace product and parts manufacturing Plastics and rubber products manufacturing Nonmetallic mineral product manufacturing Motor vehicle body, trailer, and parts manufacturing Resin, rubber, and artificial fibers manufacturing Wood product manufacturing Converted paper product manufacturing Other fabricated metal product manufacturing 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 14 LCI by Energy Use (Tera-joules) Food manufacturing Petroleum and coal products manufacturing Aerospace product and parts manufacturing Plastics and rubber products manufacturing Nonmetallic mineral product manufacturing Motor vehicle body, trailer, and parts manufacturing Resin, rubber, and artificial fibers manufacturing Wood product manufacturing Converted paper product manufacturing Other fabricated metal product manufacturing 15 LCI by Water Consumption (kgals) Food manufacturing Petroleum and coal products manufacturing Aerospace product and parts manufacturing Plastics and rubber products manufacturing Nonmetallic mineral product manufacturing Motor vehicle body, trailer, and parts manufacturing Resin, rubber, and artificial fibers manufacturing Converted paper product manufacturing Wood product manufacturing Nonferrous metal production and processing 16 Descriptives about Transportation / Supply Chain Impacts Descriptives GHG Emissions Energy Use Water 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 %0.07 17 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 manufacturing Ordnance and accessories manufacturing Pharmaceutical and medicine manufacturing Printing and related support activities Electronic instrument manufacturing Medical equipment and supplies manufacturing Electric lighting equipment manufacturing Computer and peripheral equipment… Commercial and service industry machinery… Manufacturing and reproducing magnetic and… Aerospace product and parts manufacturing Audio, video, and communications equipment… Engine, turbine, and power transmission… Semiconductor and other electronic component… Apparel manufacturing Metalworking machinery manufacturing Other transportation equipment manufacturing Other general purpose machinery manufacturing Industrial machinery manufacturing Cutlery and handtool manufacturing Electrical equipment manufacturing Petroleum and coal products manufacturing Other electrical equipment and component… Motor vehicle body, trailer, and parts… Soap, cleaning compound, and toiletry… Motor vehicle manufacturing HVAC and commercial refrigeration equipment… Other fabricated metal product manufacturing Leather and allied product manufacturing Household appliance manufacturing U.S. Average Agriculture, construction, and mining… Other miscellaneous manufacturing Basic chemical manufacturing Foundries Plastics and rubber products manufacturing Furniture and related product manufacturing Textile mills Textile product mills Boiler, tank, and shipping container… Beverage manufacturing Nonmetallic mineral product manufacturing Architectural and structural metals manufacturing Other chemical product and preparation… Converted paper product manufacturing Resin, rubber, and artificial fibers manufacturing Forging and stamping Pulp, paper, and paperboard mills Wood product manufacturing Agricultural chemical manufacturing Nonferrous metal production and processing Paint, coating, and adhesive manufacturing Food manufacturing Iron and steel mills and manufacturing from… 0% 1.00 0.97 0.94 0.86 0.78 0.78 0.77 0.75 0.73 0.72 0.70 0.70 0.69 0.68 0.66 0.64 0.63 0.63 0.62 0.60 0.59 0.58 0.55 0.55 0.54 0.53 0.53 0.53 0.52 0.52 0.50 0.49 0.47 0.46 0.45 0.45 0.45 0.44 0.44 0.43 0.37 0.37 0.37 0.37 0.35 0.34 0.32 0.32 0.31 0.31 0.30 0.29 0.25 0.22 20% 40% 60% 80% 100% 18 Comparison with Egilmez et al. (2013) • Following sectors have significantly higher supply-chain linked eco-efficiency compared to transportation focused ecoefficiency – – – – Food mfg. Leather and allied mfg. Motor vehicle mfg. Petroleum and coal products mfg. Tobacco manufacturing Pharmaceutical and medicine manufacturing Medical equipment and supplies manufacturing Electric lighting equipment manufacturing Computer and peripheral equipment manufacturing Commercial and service industry machinery manufacturing Manufacturing and reproducing magnetic and optical media Aerospace product and parts manufacturing Audio, video, and communications equipment manufacturing Engine, turbine, and power transmission equipment manufacturing Semiconductor and other electronic component manufacturing Apparel manufacturing Metalworking machinery manufacturing Other transportation equipment manufacturing Other general purpose machinery manufacturing Industrial machinery manufacturing Cutlery and handtool manufacturing Electrical equipment manufacturing Petroleum and coal products manufacturing Other electrical equipment and component manufacturing Motor vehicle body, trailer, and parts manufacturing U.S. Average Soap, cleaning compound, and toiletry manufacturing Motor vehicle manufacturing HVAC and commercial refrigeration equipment manufacturing Other fabricated metal product manufacturing Leather and allied product manufacturing Household appliance manufacturing Agriculture, construction, and mining machinery manufacturing Other miscellaneous manufacturing Basic chemical manufacturing Foundries Overall Ecoefficiency (Egilmez et al., 2013) Eco-efficiency Scores (Egilmez et al., 2013 Pearson Correlation 1 .536** Plastics and rubber products manufacturing Furniture and related product manufacturing Textile mills Textile product mills Boiler, tank, and shipping container manufacturing Beverage manufacturing Nonmetallic mineral product manufacturing Architectural and structural metals manufacturing Other chemical product and preparation manufacturing Sig. (2-tailed) N Transportation Focused Ecoefficiency Transportationfocused Ecoefficiency Pearson Correlation 53 .536** .000 53 1 Converted paper product manufacturing Resin, rubber, and artificial fibers manufacturing Forging and stamping Pulp, paper, and paperboard mills Wood product manufacturing Agricultural chemical manufacturing Nonferrous metal production and processing Paint, coating, and adhesive manufacturing Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). .000 53 Food manufacturing Iron and steel mills and manufacturing from purchased steel 53 0.67 Printing and related support activities Electronic instrument manufacturing 0.0 1.00 0.97 1.00 0.94 0.45 Ordnance and accessories manufacturing 0.86 0.78 0.78 0.77 0.52 0.75 0.54 0.73 0.43 0.72 0.81 0.70 0.75 0.70 0.47 0.69 0.34 0.68 0.41 0.66 0.36 0.64 0.35 0.63 0.34 0.63 0.28 0.62 0.36 0.60 0.47 0.59 0.37 0.58 0.55 0.26 0.55 0.69 0.54 0.39 0.54 0.11 0.53 0.53 0.33 0.53 0.32 0.52 0.52 0.32 0.49 0.29 0.47 0.25 0.46 0.13 0.45 0.17 0.45 0.48 0.45 0.25 0.44 0.15 0.44 0.21 0.43 0.22 0.37 0.21 0.37 0.08 0.37 0.20 0.37 0.18 0.35 0.07 0.34 0.08 0.32 0.20 0.32 0.05 0.31 0.26 0.31 0.12 0.30 0.11 0.29 0.20 0.25 0.22 0.06 1.00 0.41 0.38 0.2 Transportation Impacts Focused Eco-efficiency 0.4 0.6 1.00 1.00 0.89 1.00 0.8 1.0 19 Overall Supply Chain-linked Eco-Efficiency Summary and Conclusion • Transportation-focused life cycle inventory of U.S. manufacturing 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 manufacturing 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 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 Thank You! QUESTIONS? Gokhan Egilmez, PhD E-mail: [email protected] 22 Eco-efficient subsectors • Eco-efficient subsectors Tobacco product manufacturing Ammunition manufacturing Support activities for printing Biological product (except diagnostic) manufacturing Electricity and signal testing instruments manufacturing Industrial process furnace and oven manufacturing Carbon black manufacturing Pharmaceutical preparation manufacturing 23 References • • • Egilmez, Gokhan, Kucukvar, M., & Tatari, O. (2013). Sustainability assessment of U.S. manufacturing sectors: an economic input output-based frontier approach. Journal of Cleaner Production. Retrieved from http://dx.doi.org/10.1016/j.jclepro.2013.03.037 Egilmez, Gokhan, Kucukvar, M., Tatari, O., & Bhutta, M. K. S. (2014). Supply chain sustainability assessment of the U.S. food manufacturing sectors: A life cycle-based frontier approach. Resources, Conservation and Recycling, 82, 8–20. 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. 2007 Commodity Flow Survey United States. Retrieved from http://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/commo dity_flow_survey/final_tables_december_2009/html/table_05.html 24
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