Environmentally friendly pathways for the evaluation of investment projects using life cycle assessment (LCA) and life cycle cost analysis (LCCA)

Issues related to improvement in the quality of products and to environmental protection in the economic policy of many countries and in the strategies of institutions and international organisations (e.g. European Union) have increased in importance in recent years as a consequence of the increase in environmental awareness of consumers. All these institutions currently recommend a comprehensive assessment of the effectiveness of planned projects during the decision-making process taking into account both economic and environmental factors. It is, therefore, important to develop methods and tools to assess environmental performance as a support to a proper choice of investment activities. The aim of this paper is to develop algorithms to link the life cycle assessment (LCA) model associated with environmental issues and the life cycle cost analysis (LCCA) model associated with economic factors to permit an integrated assessment of investment projects. The combination of LCA and LCCA results enables the assessment of ongoing or planned investments and should be used as a priority in making strategic decisions. In this paper, three environmentally friendly pathways (algorithms) using LCA-LCCA indicators as a support for decision-making processes were proposed: the first for implementing any environmental investments, the second for modernisation and innovation investments, and the third for new investments.