monetizing social impacts for use in lca
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Monetizing social impacts for use in LCA. Bengt Steen Chalmers University of Technology, Environmental System Analysis and CPM, Centre for Environmental Assessment of Products and Material Systems. Basic question. - PowerPoint PPT PresentationTRANSCRIPT
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Monetizing social impacts for use in LCABengt SteenChalmers University of Technology, Environmental System Analysis and CPM, Centre for Environmental Assessment of Products and Material Systems
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Basic question Is it possible to monetize social impacts of
products with the same credibility as for environmental issues? Is it meaningful?
Is it true? Is it useful?
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Content A framework Choice of indicators A long list of indicators Screening process to get a short list Three examples Conclusion
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A framework
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Choice of indicators What to include How to make trade-offs How to handle uncertainty
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Choice of indicators
Degree of precaution
Strong
sustainability
Size of moral circle
Number of unique values & rights in trade-offs
Family, village
All living human beings
Very careful
Self All generations animals, plants
Weak
sustainability
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A list of impact categories* Health and social well-being Quality of the living environment (liveability) Economic impacts and material well-being Cultural impacts Family and community impacts Institutional, legal, political and equity impacts Gender relations
* From van Schooten et al 2003
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Indicators for Health and social well-being Death of self or a family member Death in the community Nutrition Actual physical health and fertility Perceived health Mental health Aspirations Autonomy Stigmatisation or deviance labelling Feelings in relation to the project
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Quality of the living environment (liveability) Quality of the living environment (actual and perceived)
(Similar issues that is treated in environmental impact assessments)
Leisure and recreation opportunities and facilities Environmental amenity value/aesthetic quality Availability of housing facilities Physical quality of housing (actual and perceived) Social quality of housing (homeliness) Adequacy of physical infrastructure Adequacy and access to social infrastructure Personal safety and hazard exposure (actual and perceived) Crime and violence (actual and perceived)
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Economic impacts and material well-being Workload Standard of living Economic prosperity and resilience Income Property values Employment Replacement costs of environmental functions (that was
formely provided by the environment, but now has to be paid for)
Economic dependency Burden of national debt (including intergenerational debts)
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Cultural impacts Change in cultural values (moral rules, beliefs etc) Cultural affrontage (violation of sacred sites etc.) Cultural integrity Experience of being culturally marginalized Profanization of culture Loss of language or dialect Natural and cultural heritage (violation, damage or
destruction of)
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Family and community impacts Alteration of family structure Obligations to living family members and ancestors Family violence Social networks Community identification and connection Community cohesion (actual and perceived) Social differentiation and inequity Social tension and violence
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Institutional, legal, political and equity impacts Functioning of government agencies Integrity of government and government agencies Tenure or legal rights Subsidiarity (the principle that decisions should be
taken as close to the people as possible Human rights Participation in decision making Access to legal procedures and legal advice Impact equity
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Gender relations Women’s physical integrity Personal autonomy of women Gender division of production-oriented labour Gender division of household labour Gender division of reproductive labour Gender-based control over, and access to resources Political emancipation of women
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What to include in a short list Impact significance Relevance to products Known pathways Relevant for sustainable development, i.e.
Need oriented Development oriented Resource oriented
External costs and benefits
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Impact significance-important issues of today Health and social well-
being Quality of the living
environment (liveability) Economic impacts and
material well-being Cultural impacts Family and community
impacts Institutional, legal, political
and equity impacts Gender relations
Poverty Employment Crime Equity (gender etc) War
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Relevance to products Health and social well-being Quality of the living environment (liveability) Economic impacts and material well-being Cultural impacts Family and community impacts Institutional, legal, political and equity impacts Gender relations
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Known pathways Health and social well-being Quality of the living environment (liveability) Economic impacts and material well-being Cultural impacts Family and community impacts Institutional, legal, political and equity impacts Gender relations
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Social Environ-ment
Economy
Sustainable development
Relevant for sustainable development
SD = Increasing resilience
For example by:
•increasing capacity to peacefully resolve or transform conflicts
•Increasing the capacity to satisfy needs
•Wisdom (know what needs to be done)
•Skills (be able to do it)
•Empathy (be motivated to do it)
Key social sustainability values
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Relevant for sustainable development Health and social well-being Quality of the living environment (liveability) Economic impacts and material well-being Cultural impacts Family and community impacts Institutional, legal, political and equity impacts Gender relations Wisdom Skills Empathy
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Some problems in making a short list To include impacts that are many and small -
Rings on water Allocation problems Uncertainty Trade-offs
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Short list for use of a Car Death in the community Actual physical health and fertility Availability of housing facilities Income Property values Employment
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Short list for the use phase of a fridge (exl. Electricity production) Actual physical health and fertility Income Employment
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Short list for a video (movie) Mental health Aspirations Crime and violence Income Employment Change in cultural
values Cultural integrity Profanization of culture
Natural and cultural heritage Social networks Community identifi-cation and connection Community cohesion Social tension and violence Wisdom Skills
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Monetarisation options for use of a car
Death in the community OK accident statistics Actual physical health and fertility, Health OK, Availability of housing facilities, OK, via hedonic
price methods Income – from use costs x (1-dymanic factor) Property values - OK, via hedonic price methods Employment – workhours x employment value x
dynamic factor
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Monetarisation options for the use phase of a fridge Actual physical health and fertility. Data from
health authorities + values from WTP Income – From use costs x(1- dynamic factor) Employment – From workhours in supply
chain + employment value x dynamic factor
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Monetarisation options for a video (movie) Mental health - qualitatively Aspirations - qualitatively Crime and violence - qualitatively Income from costs x (1-dynamic factor) Employment – from workhours + employment value Change in cultural values - qualitatively Cultural integrity - qualitatively Profanization of culture - qualitatively Natural and cultural heritage - qualitatively Social networks - qualitatively Community identification and connection - qualitatively Community cohesion - qualitatively Social tension and violence - qualitatively Wisdom - qualitatively Skills - qualitatively
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Global accounting estimates Income from economic activity: 100% Loan from future generations environment:
10-15% Basic physical consumption : 20-100% Social consumption:0 – 80%
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Conclusions Social impacts have a significant monetary value For many social impacts it does not seem possible to
estimate their monetary value with an accuracy that fulfil normal demands and leads to general acceptance
Monetaristion of social impacts may be meaningful in engineering, but we need to develop the language to explain what is done
There is a need to develop the sustainability feature further in social impact assessment