Life Cycle Assessment and
Energy Systems
EVERT NIEUWLAAR
Copernicus Institute, Utrecht University
Utrecht, The Netherlands
1. Definition and Role of Life Cycle Assessment
2. Goal Definition and Scoping
3. Inventory Analysis
4. Impact Assessment
5. Interpretation
6. Energy Issues in Life Cycle Assessment
7. Life Cycle Assessment of Energy Systems
Glossary
functional unit Quantified performance of a product
system for use as a reference unit in a life cycle assess-
ment study.
life cycle Consecutive and interlinked stages of a product
system, from raw material acquisition or generation of
natural resources to the final disposal.
life cycle assessment (LCA) Compilation and evaluation of
the inputs, outputs, and potential environmental im-
pacts of a product system throughout its life cycle.
life cycle impact assessment (LCIA) Phase of life cycle
assessment aimed at understanding and evaluating the
magnitude and significance of the potential environ-
mental impacts of a product system.
life cycle interpretation Phase of life cycle assessment in
which the findings of the inventory analysis, the findings
of the impact assessment, or both are combined, consis-
tent with the defined goal and scope, to reach conclu-
sions and recommendations.
life cycle inventory (LCI) analysis Phase of life cycle
assessment involving the compilation and quantification
of inputs and outputs for a given product system through-
out its life cycle.
The environmental impact of energy systems has a
diverse origin. The combustion of fuels leads directly
to emissions and potential environmental harm,
whereas the use of electricity does not lead directly
Encyclopedia of Energy, Volume 3. r 2004 Elsevier Inc. All rights reserved.
to environmental impacts. However, the production
of electricity from fuels leads to emissions of, for
example, carbon dioxide and nitrogen oxides, which
can lead to climate change and acidification,
respectively. If wind turbines or photovoltaic cells
produce the electricity, these emissions are avoided.
However, the material-intensive production of wind
turbines and photovoltaic cells is associated with
environmental releases. Therefore, assessing the
environmental impacts of energy carriers involves
not only the process of using the energy carrier but
also all related processes: from extracting primary
energy from nature, its conversion into secondary
energy carriers, its use, and any processing of waste
flows at the end. Environmental life cycle assessment
is the ‘‘cradle-to-grave’’ approach for assessing the
environmental impacts of products such as electricity
and petroleum. The cradle-to-grave approach in-
volves all steps between extracting materials and
fuels from the environment until the point where all
materials are returned to the environment. The
methodology of life cycle assessment and its applica-
tion to energy systems are the subject of this article.
1. DEFINITION AND ROLE OF LIFE
CYCLE ASSESSMENT
1.1 Definition and Characteristics
A life cycle refers to the life span of a product, from
resource extraction, to manufacture, to use, to final
disposal. The cycle aspect reflects that materials
extracted from the environment are followed until
they are ultimately returned to the environment.
Life cycle assessment (LCA) refers to the analysis
and evaluation of product life cycles. In general, the
assessment is limited to environmental issues only,
647
648 Life Cycle Assessment and Energy Systems
although LCA could also imply the assessment of
other issues (e.g., social, economic). Therefore, LCA
is shorthand for environmental life cycle assessment.
Economic tools such as life cycle costing do exist but
are not considered in this context as part of LCA.
LCA addresses environmental aspects of pro-
ducts—actually product systems, as is explained later.
This is a major distinction of LCA from other
environmental tools such as environmental impact
assessment (EIA) and substance flow analysis (SFA).
The product-oriented approach in LCA means that
environmental impacts related to a product are
examined. Products can be physical items such as
pencils, potatoes, and cars. The term ‘‘product’’ also
includes services such as transport and health care.
Actually, it is not the physical product or service that
has the focus in an LCA; it is the function that is
fulfilled by the product that is central. Products are
provided by product systems that fulfill a certain
function. For example, milk cartons and milk bottles
are provided by packaging systems that provide the
packaging function. For energy systems, the products
are delivered energy (e.g., in the form of petroleum,
electricity, or heat) delivered by energy supply systems
from primary energy carriers. Ultimately, the deliv-
ered energy is used to provide energy functions (e.g.,
lighting, mechanical work, production of materials).
Another important characteristic of LCA is that it
addresses complete chains. In principle, all processes
from resource extraction through production, con-
sumption, and ultimately waste management are
included in the assessment (cradle-to-grave analysis).
In most cases, this means that the activities in the life
cycle are not controlled by a single company or
consumer and that companies involving themselves
with LCA must face the fact that the environmental
profile of their products also depends on the
environmental performance of other companies.
LCA is not only comprehensive with respect to the
number of processes included in the assessment; it is
also comprehensive with respect to the number of
environmental impacts. In principle, all environmen-
tal impacts related to the product system are
addressed. The environmental impacts assessed in-
clude, but are not limited to, the environmental issues
most often related to energy conversion systems:
acidification, climate change, depletion of primary
energy carriers, human toxicity, and ecotoxicity.
Where possible, quantitative results are presented
in an LCA. These can range from listing all emissions
amounts, aggregated values within environmental
themes, to single-value indicators such as ecopoints
or ecoindicators. However, single-value indicators
reflecting all environmental impacts are value laden
because this would involve weighting of different
types of environmental damage.
Because of its nature, LCA is not location specific
or time specific; that is, it cannot directly tell what
the actual environmental impact of the product will
be at a certain time or place. All phases of the life
cycle (e.g., manufacture, use, waste management) are
usually not concentrated on one location, and the
time between manufacture of the product and waste
management after discarding the product can be
several years.
1.2 Energy and LCA
In many LCAs, energy plays an important role. The
use of energy by itself is not always considered to be
an environmental issue. The depletion of primary
energy carriers and the strong link between energy
use and certain other environmental issues (most
notably acidification and climate change) have often
led to the use of energy as an environmental
indicator. Energy supply systems are also a major
contributor to environmental themes.
1.3 Methodology Outline
LCA methodology was developed during the 1990s
and is still under further development. These devel-
opments have led to standardization by the Interna-
tional Organization for Standardization (ISO) in the
ISO-14040 series. In these standards, the following
steps are distinguished (Fig. 1).
Life cycle assessment framework
Goal and scope
definition Direct applications:
• Product development
and improvement
• Strategic planning
• Public policymaking
Inventory
analysis Interpretation • Marketing
• Other
Impact
assessment
FIGURE 1 Phases of a life cycle assessment. From ISO (1997).
Reproduced with the permission of the International Organization
for Standardization, ISO. These standards can be obtained from
any ISO member and from www.iso.org. Copyright remains with
ISO.

1. Goal definition and scoping. The application
and type of LCA are described, the product systems
to be evaluated are defined, and the geographical and
temporal scope are defined as well. This step also
includes the definition of the functional unit, which
will act as the reference for the subsequent steps.
2. Inventory analysis. The environmental releases
(e.g., emissions, resource extractions) for the product
systems and the functional unit are determined.
3. Impact assessment. The (potential) environ-
mental impacts caused by the environmental releases
analyzed in the previous step are determined.
4. Interpretation. The results of the inventory
analysis and impact assessment are discussed, con-
clusions are drawn, and recommendations are made.
These four steps in an LCA are further discussed in
subsequent sections of this article.
2. GOAL DEFINITION
AND SCOPING
In the goal definition and scoping phase of LCA, the
purpose and method of including environmental
information in decision making are defined. The
primary goal of an LCA is the selection of the best
product alternative in terms of having the least effect
on human health and the environment. This almost
always means that comparisons are made: the
product is compared with a competing product, or
improved products are compared with the original or
a design target. Also, the LCA can be used to identify
life cycle stages where opportunities for reduction in
resource use and emissions might be found. LCA
can also play a role in guiding the development of
new products. More specific goals can be defined;
for example, how can the product system be changed
such that a specific environmental impact (e.g.,
acid rain) can be reduced without the introduction
of adverse effects in other environmental impact
categories?
The goal definition and scoping phase determines
the amount, type, and quality of the data require-
ments and, therefore, also the time and resources
needed for the LCA study. For instance, during early
stages of product development, many design choices
exist. Limited amounts of rough data and a focus
on the most important steps may be considered
sufficient in such cases, especially when the results
are used internally. In the case of comparing
competing products, the justification of environmen-
tal claims may require comprehensive data acquisi-
Life Cycle Assessment and Energy Systems 649
tion and, therefore, more time and resources for the
LCA study.
Depending on the goal, the LCA practitioner may
decide not to include all life cycle phases in the scope
of the research. This may be justified in cases where
such phases are known to have negligible impact or
where such phases are equal for all product
alternatives considered.
LCA data and results will be expressed in terms of
a functional unit that describes the function of the
product system studied and also gives a quantifica-
tion of this function. For electric power production,
the function can be defined as ‘‘to deliver electric
power to the electric grid.’’ The functional unit is
then 1 kilowatt-hour (kWh) electric power delivered
to the electric grid. Comparisons between product
alternatives (e.g., between coal-fired power stations
and gas-fired power stations) must be made based on
the same functional unit for all product alternatives.
This means that 1 kWh of electricity from a coal-fired
power station must be functionally equivalent to
1 kWh of electricity from a gas-fired power station.
3. INVENTORY ANALYSIS
3.1 Definition
In the life cycle inventory (LCI) analysis, the life cycle
is drawn up and all energy and material require-
ments; emissions to air, water, and soil; and other
environmental releases are quantified. The steps
involved in performing an LCI are the development
of a flow diagram, data collection, multi-output
processes, and reporting.
3.2 Development of a Flow Diagram
The flow diagram reflects all of the processes that
make up the product system and the inputs and
outputs to each of the processes within the product
system. From the goal and scope definition, it follows
which processes will be included within the system
boundary. Figure 2 gives an example of a product
system for LCI analysis. It shows the processes that
are included in the system boundary as well as
product flows to or from other systems that are not
included. Two types of processes are modeled here in
a more generic way: transports and energy supply.
This represents the fact that in nearly all cases some
form of transport is needed between processes and
the fact that energy is needed in many operations. All
processes are connected with flows of (intermediate)
650 Life Cycle Assessment and Energy Systems

System subsequent human transformation, respectively. In

Systems environment boundary
other words, elementary flows originate directly
from the environment (e.g., energy and material
Raw material
acquisition
resources, land use) or are discarded directly to the
environment (e.g., emissions, heat, radiation, sound).
Transports
Elementary flows originate from the processes within
Other Product
system flow
Production
Elementary the system boundary, as is shown in Fig. 3.
flows
Energy
supply Use

Elementary
3.3 Data Collection
flows Recycling/
Reuse Product Other
systems
Data collection is probably the most time-consuming
flow
step. From the goal definition and scoping step, it
Waste
treatment must be clear which requirements for data accuracy
must be fulfilled. Most often, this will be a mix of
FIGURE 2 Example of a product system for life cycle inventory site-specific data (obtained through measurements
analysis. From ISO (1998). Reproduced with the permission of the and calculations from measurements) and more
International Organization for Standardization, ISO. These generic, non-site-specific data that can be obtained
standards can be obtained from any ISO member and from
from available databases or expert estimates.
www.iso.org. Copyright remains with ISO.

3.4 Multi-Output Processes

In many cases, processes are encountered that do not
have a single useful output. In such multi-output
processes, often only one of the outputs is used in the
Elementary Unit Elementary life cycle. Other outputs are used in other life cycles
flows in process flows out that are not under investigation. The material and
energy inputs and the elementary flows of these
Intermediate processes have to be divided (allocated) among the
flows in
useful outputs in a ‘‘proper’’ way. Various possibi-
lities exist for the allocation in multi-output pro-
Elementary Unit Elementary cesses. A well-known multi-output process is the
flows in process flows out combined production of heat and power (CHP). The
fuel input in CHP plants is to be divided between
Intermediate heat and electricity. One possibility is system exten-
flows out
sion by introducing a reference technology for one of
the products. In the case of heat production, the fuel
Elementary Unit Elementary input for heat is calculated as the fuel required for
flows in process flows out generating the heat in a reference boiler. The fuel
input for electricity from the CHP plant is then
obtained by subtracting the fuel input for heat
production from the CHP plant fuel requirement.
FIGURE 3 Example of a set of unit processes within a product Of course, a reference electricity plant could be
system. From ISO (1998). Reproduced with the permission of the introduced instead of a reference boiler. Another
International Organization for Standardization, ISO. These approach is the use of a physical property of the
standards can be obtained from any ISO member and from
products (e.g., mass or energy content) as an
www.iso.org. Copyright remains with ISO.
allocation factor. For CHP, the use of mass as an
allocation factor is meaningless. Energy content
products. Furthermore, elementary flows to and from (either on a heat/enthalpy basis or on an exergy
the environment are shown. Elementary flows are basis) is more meaningful. A third approach is the
either material or energy flows entering or leaving the use of economic value of the individual products as
system that have been drawn from the environment the proper allocation factor. All three approaches
or discarded to the environment without previous or have been used in LCAs.

3.5 Reporting
The outcome of the LCI analysis is a list of all
elementary flows to or from the environment for each
product system investigated, resulting from the func-
tional unit provided by the product systems. For the
purpose of analyzing these results, they can be
organized according to life cycle stage and/or media
(air, water, or land). It is possible to use these results
for further analysis such as comparison of product
alternatives and identification of life cycle stages where
significant environmental releases take place. How-
ever, these releases do not express the potential envi-
ronmental impacts that may be caused. The transla-
tion of environmental releases to potential environ-
mental impacts is the subject of the next section.
4. IMPACT ASSESSMENT
4.1 Definition
Life cycle impact assessment (LCIA) is the phase of
an LCA where the evaluation takes place of the
potential environmental impacts stemming from the
elementary flows (environmental resources and
releases) obtained in the LCI. LCIA consists of the
following steps:
1. Selecting the relevant impact categories
2. Classification: assigning the elementary flows to
the impact categories
3. Characterization: modeling potential impacts
using conversion factors obtaining an indicator for
the impact category
4. Normalization (optional): expressing potential
impacts relative to a reference
5. Grouping: sorting or ranking the impact
indicators
6. Weighting: relative weighting of impact cate-
gories; and evaluation and reporting
4.2 Impact Categories
Environmental impacts are the consequences caused
by the elementary flows on human health, plants,
and animals (ecological health) or by the future
availability of natural resources (resource depletion).
A number of impact categories are listed in the first
column of Table I.
In the classification step, the LCI results are
organized and combined into the impact categories
selected in the previous step. An example is formed
Life Cycle Assessment and Energy Systems 651
by the greenhouse gases that are classified in the
global warming category (third column of Table I).
In the characterization step, characterization factors
are used (where possible) in each impact category to
combine all of the elementary flows to one indicator
for the impact category. For greenhouse gases, the
global warming potential for each greenhouse gas is
used to combine all greenhouse gases into one
indicator (global warming equivalent), expressed in
carbon dioxide equivalents. The final two columns of
Table I show the characterization factors and a
description of the procedure. For some impact cate-
gories (e.g., global warming, ozone depletion), there is
a consensus on acceptable characterization factors. For
other impact categories, methods have been developed
but further consensus regarding their application has to
be established. Furthermore, characterization factors
for regional environmental issues (e.g., acidification)
may sometimes be defined such that they are relevant
only for the region for which they were derived. Use of
these factors in other regions has to be investigated.
In the (optional) normalization step, the indicator
scores obtained in the characterization step are
normalized by dividing by a reference value. Re-
ference values can be the total emissions or resource
uses for a given area (global, regional, or local) or the
total emissions/resource uses for a given area per
capita. The results do not imply a certain weighting
among impact categories; they merely give an
indication how much the environmental profile of
the product contributes to the total environmental
profile of, for example, the region.
4.3 Grouping and Weighting
In the grouping step, the indicators are sorted by
characteristics such as emissions (e.g., air, water) and
location (e.g., local, regional, global). Other forms of
grouping, such as using a ranking system (high, low,
or medium priority), also exist. In the last case, value
choices regarding what is to be considered a high or
low score play an important role, and transparency
regarding the procedure used is essential.
The weighting (or valuation) step assigns relative
values to the various impact categories based on
perceived importance. Although scientific procedures
may be used (e.g., multiple-criteria analysis), the
weighting factors obtained are not strictly scientific.
At best, they correctly reflect the preferences of the
stakeholders considered in the (scientific) procedure.
Because such preferences can change in time and
among stakeholders, it can also be considered to use
only the characterization (or normalization) results.
TABLE I
Life Cycle Impact Categories

Impact category Scale Relevant LCI data (i.e., classification) Characterization factor Description of characterization factor

Climate change Global Carbon dioxide (CO2) Global warming potential (GWP) Converts LCI data to carbon dioxide
Dinitrogenmonoxide (N2O) (CO2) equivalents (Note: global
Methane (CH4) warming potentials can be 50-, 100- or
Chlorofluorocarbons (CFCs) 500-year potentials)
Hydrochlorofluorocarbons (HCFCs)
Stratospheric ozone Global Chlorofluorocarbons (CFCs) Ozone depletion potential (ODP) Converts LCI data to
depletion Hydrochlorofluorocarbons (HCFCs) trichlorofluoromethane (CFC-11)
Halons equivalents
Methyl bromide (CH3Br)
Acidification Regional local Sulfur oxides (SOx) Acidification potential (AP) Converts LCI data to sulfur dioxide (SO2)
Nitrogen oxides (NOx) equivalents
Hydrochloric acid (HCl)
Hydrofluoric acid (HF)
Ammonia (NH3)
Eutrophication Local Phosphate (PO4) Eutrophication potential (EP) Converts LCI data to phosphate (PO4)
Nitrogen monoxide (NO) equivalents
Nitrogen dioxide (NO2)
Nitrates (NO3)
Ammonia (NH3)
Photochemical smog Local Non-methane volatile organic compounds Photochemical ozone creation Potential Converts LCI data to ethylene (C2H4)
(NMVOC) (POCP) equivalents
Ecotoxicity Global continental Releases to air, water, and soil Fresh water aquatic ecotoxicity potential Converts LCI data to 1,4-dichlorobenzene
(FAETP) equivalent; separate factors for fresh
Marine aquatic ecotoxicity potential water aquatic/sediment Marine aquatic/
(MAETP) sediment, and terrestrial ecotoxicity
Fresh water sediment ecotoxicity potential (Note: different factors for global/
(FSETP) continental scale and infinite or 20-,
Marine sediment ecotoxicity, potential 100-, or 500-, year time horizon)
(MSETP)
Terrestrial sediment ecotoxicity potential
(TETP)
Human toxicity Global continental Releases to air, water, and soil Human toxicity potential (HTP) Converts LCI data to 1,4-dichlorobenzene
equivalents (Note: different factors for
global/continental scale and infinite or
20-, 100-, or 500-year time horizon.)
Resource depletion, Global Quantities of minerals/fossil fuels used Abiotic depletion factor (ADP) Converts LCI data to antimony
abiotic equivalents
Land use Global regional local Land occupation Increase of land competition Converts LCI data to cumulative land use
expressed in square meters/year

Sources. U.S. Environmental Protection Agency (2001), with corrections; Guinée (2002). See Guinée (2002) for a more complete listing, guidelines, and values for the characterization
factors.

In fact, the ISO 14040 standard does not allow the
use of weighting methods in comparative assertions
that are to be disclosed to the public.
5. INTERPRETATION
Life cycle interpretation is the procedure during
which the results of the LCI and LCIA are identified,
checked, and evaluated. Life cycle interpretation
consists of the following steps:
1. Identify significant issues.
2. Evaluate the completeness, sensitivity, and
consistency of the data.
3. Draw conclusions and make recommendations.
Significant issues are the data elements that
contribute the most to the results of the LCI and
LCIA. These can be certain inventory parameters
(e.g., energy use), impact categories (e.g., acidifica-
tion), or certain life cycle stages (e.g., manufacturing).
In the second step, checks are performed regarding
completeness, sensitivity of the significant data
elements, and consistency (with regard to the goal
definition and scope of the study). Such checks are
required to reach consistent and reliable conclusions.
In most cases, a clear answer cannot be given to the
question of which product alternative is better from
an environmental point of view. This can be caused
by the uncertainty in the results or by differing
outcomes in the impact categories that were con-
sidered relevant. The LCA process can then still give
useful results in terms of better understanding of the
environmental impacts of each product alternative
(e.g., which impacts, where these impacts occur).
When LCA results are to be used to support local
decision making, additional analysis addressing local
aspects is required. For this, various forms of
environmental impact assessment and risk analysis
can be used.
6. ENERGY ISSUES IN LIFE
CYCLE ASSESSMENT
Because energy is used in nearly every life cycle step,
energy production often plays a key role in the LCA
of any product system. Therefore, a consistent and
accurate treatment of energy in LCA is required.
In a strict sense, energy is not a separate issue in
LCA. The inputs and outputs of energy carriers are
recorded individually in the inventory phase, but
aggregate input/output is not. Similarly, the use of
Life Cycle Assessment and Energy Systems 653
energy is not seen as an impact category during the
impact assessment phase. The use of energy carriers
leads to depletion of biotic and abiotic resources and
can also lead to the emissions of various pollutants.
The impacts in the related categories (e.g., [a]biotic
depletion, climate change, acidification) are of
concern in environmental assessment. On the other
hand, an account of primary energy use in a product
life cycle can be made relatively easy when the LCA
data are available. Such data can be used to show
overall energy performance and may also be used as
a limited indicator of environmental performance.
The use of electricity in an LCA asks for careful
treatment. Electricity is generated in various power
plants within a certain country or region, each having
its own environmental profile. It can be considered to
take average values of energy use and emissions
during a specific year by averaging over all power
plants in the region. However, this might not reflect
what is actually happening. For instance, if incandes-
cent lamps are replaced by compact fluorescent lamps,
a marginal approach is more adequate than an
average approach. In the short-term marginal ap-
proach, the electricity savings caused by the substitu-
tion of lamps do not stem from the average of all
plants (e.g., based mainly on coal) but rather stem
from the plant that will not produce the electricity
anymore. This could be an efficient natural gas-fired
power plant or an older, less efficient power plant that
can now be taken out of operation. For product
choices that reduce electricity use in the future,
present average and short-term marginal values may
be inadequate. In such cases, long-term marginal
values are needed. In many regions of the world, the
dominant technology for new electric power plants is
the natural gas-fired combined cycle power plant.
Environmental data from this power plant are more
adequate than present or future averages.
7. LIFE CYCLE ASSESSMENT OF
ENERGY SYSTEMS
LCA methods can be used to analyze energy systems.
In principle, the scope for such analyses can range
from the analysis of individual energy production
technologies to, ultimately, the analysis of complete
national energy systems.
A convenient functional unit for energy supply
systems is an amount of energy produced. For
electric power systems, the kilowatt-hour of electri-
city produced is an example. However, an account
654 Life Cycle Assessment and Energy Systems

Coal Oil Gas Hydro Nuclear

profile of the materials used will largely determine
the total environmental profile.
100.0 As an example, Fig. 4 shows the results for typical
electricity-generating systems in Europe for six
80.0 impact categories. It shows that coal is most
polluting in the impact categories of global warming
(climate change), eutrophication, and human toxicity
Percentage

60.0
and that oil is most polluting with respect to ozone
layer depletion, acidification, and photochemical
40.0 smog. Results are sensitive to the quality of the fuels
and the specific cleaning technologies used.
20.0

0.0
SEE ALSO THE
ing ion ion ion og cit
y FOLLOWING ARTICLES
m ple
t at ica
t m xi
ar e ific h ls to
al
w rd cid op i ca an
ob lay
e A utr em m Climate Protection and Energy Policy  Ecological
Gl n e E
toch Hu
O zo ho Risk Assessment Applied to Energy Development 
P
Electric Power Generation: Valuation of Environ-
FIGURE 4 Comparison of various electricity generation mental Costs  Green Accounting and Energy 
systems with respect to various impact categories. For every
impact class, the most polluting plant type is set to 100% (no
Industrial Ecology  Life Cycle Analysis of Power
normalization is applied here). From inventory data from Generation Systems  Multicriteria Analysis of
Frischknecht [1996]; impact assessment characterization factors Energy  Net Energy Analysis: Concepts and
from Guinée [2002]. Methods

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