nanotechnology supply chains: a framework for their ... › sno2015 › images › supply chains nov...

23
Nanotechnology Supply Chains: A Framework for Evaluating Their Global Implications Faye Duchin Professor of Economics Rensselaer Polytechnic Institute Troy, NY Fourth Annual Sustainable Nanotechnology Conference, November 10, 2015, Portland, OR

Upload: others

Post on 05-Jul-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Nanotechnology Supply Chains: A Framework for Evaluating Their

Global Implications

Faye Duchin Professor of Economics

Rensselaer Polytechnic Institute Troy, NY

Fourth Annual Sustainable Nanotechnology Conference, November 10, 2015, Portland, OR

Page 2: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Initiatives of the United Nations System

• Brundtland Report, Our Common Future, 1987: “Sustainable Development”

• Sustainable Development Goals (SDGs): 2015 – 2030 (17 goals)

1 F. Duchin SNO Conference

Page 3: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

• What I do: Scenario analysis

• Relation to the “nanotechnology supply chain”

• Life cycle assessment and input-output economic models

• Nanomaterial taxonomy

• Prototype designs for integrated water and wastewater treatment systems

F. Duchin SNO Conference 2

Overview of presentation

Page 4: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Scenario analysis

• Model and database of world economy

– Consumption, production, trade

• Several-decade timeframe

• Assumptions about

– Demographics

– Material standard of living

– Technological choices

– Availability of ecosystem goods and services

3 F. Duchin SNO Conference

Page 5: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Will we be able to feed 10B people in 2050?

• Baseline assumptions

• Screened alternative scenarios for feasible solutions with low forest clearing and low rise in food prices.

Springer, N. and F. Duchin, 2014. Feeding Nine Billion People Sustainably: Conserving Land and Water through Shifting Diets and Changes in Technologies, ES&T, 48(8): 4444–4451.

F. Duchin SNO Conference 4

Page 6: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Assumptions: Nanomaterial production technologies, penetration

• Resource and energy requirements • Money costs and prices • International division of labor • International distribution of income

Explore alternative scenarios to achieve specific objectives.

5 F. Duchin SNO Conference

Page 7: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

“Nanotechnology supply chain” as building block for a systemwide representation

NM nanomaterials

NIP nano- Intermediate products

NFP final products with embodied nanomaterials

6 F. Duchin SNO Conference

Page 8: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Generalize to account for: • Conventional resources and products

• Network, not a chain

• Technologies employed

• Geographies of production, consumption

• Association with multiple attributes – Physical quantities

– Money values (dual of material flows)

– Health, safety and environmental implications

7

NM NIP NFP

F. Duchin SNO Conference

Page 9: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

u2

u3

e21

e12

e23

e32

e13

e31

Simplified supply network for a 3-region economy

Region 1

Final Demand

u1

φ1

φ2

φ3

Region 2

Final Demand

Region 3

Final Demand

Region 1 Sectors

Region 3 Sectors

Region 2 Sectors

Region 1 Resources

Region 3 Resources

Region 2 Resources

8 F. Duchin SNO Conference

Page 10: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Network-based framework for analyzing alternative scenarios in the global economy requires:

• Database

• Models

• Network analysis applied to model outcomes

9 F. Duchin SNO Conference

Page 11: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Nano-database does not exist, but important components are available:

• Industrial ecology and Life-Cycle Assessment (LCA)

• Input-output economics and meso-level databases and models

• 20 years experience integrating LCA and input-output models

• Deeper collaboration between LCA and IO

10 F. Duchin SNO Conference

Page 12: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

World IO Databases and Models

• First world input-output database and world model 1970s (Leontief, UN)

• National IO databases compiled periodically from censuses and surveys in most countries

• Today several detailed world IO databases, family of world IO models

11 F. Duchin SNO Conference

Page 13: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Basic IO database and model for one region

A

F

y

x = (I – A)-1y Iconic input-output model f = Fx = F(I – A)-1y associates resources (f) with final demand (y)

12 F. Duchin SNO Conference

Page 14: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

WTM Quantity Model (primal)

i

iii xFπT

 

(I -A i )x ii

å = y ii

å

Fix i fi

xi ³ 0 "i

min Z =

Solves for xi, p, and ri 13 F. Duchin SNO Conference

Page 15: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

maxW = (yiTp-

i

å fiTri )

(I-Ai )Tp £Fi

T (ri +p i ) "i

WTM Price Model (dual)

ri ³ 0 "ip ³ 0,

14 F. Duchin SNO Conference

Page 16: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

What is needed to use this framework to analyze scenarios about the diffusion of nanotechnologies throughout the global economy?

15 F. Duchin SNO Conference

Page 17: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Analytic requirement: nanotechnology taxonomy

• Expand Standard Industrial Classifications to distinguish nanomaterials as products

• Quantify their production technologies (inputs per unit of output, as in LCA)

• Distinguish conventional primary resource inputs for nanomaterial production

16 F. Duchin SNO Conference

Page 18: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Taxonomies and data development • Service sectors, automation in 1970s

• “Environmentally-extended” input-output databases in 1990s

• World input-output databases in 2000s

17 F. Duchin SNO Conference

Page 19: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Baseline nanotech scenario outcomes

• Global resource and energy requirements

• Contrast conventional materials and products

• Track products upstream to embodied inputs by source region (e.g., in case of illness outbreak)

• Track nanomaterials produced in selected regions downstream to embodiment in final goods.

18 F. Duchin SNO Conference

Page 20: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Sustainable Development Goal #6: Assuring universal access to safe drinking water and “improved sanitation services.”

F. Duchin SNO Conference 19

Page 21: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

I. Cazcarro, C. Lopez-Morales, and F. Duchin, “Global Economic Costs of the Need to Treat Polluted Water”

20

• Costs greater by > 1 trillion USD than if water endowments were maintained at higher quality

• Costs increase steeply with further degradation

What about using nanotechnology-based water and wastewater treatment systems?

F. Duchin SNO Conference

Page 22: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

My recommendation: Complement the

global SDG rollout with…

Global Design Prototypes for Integrated Systems for Water and Wastewater Treatment

• Global collaborative effort to produce designs for distinct kinds of settings

• Parallel research agenda on associated risks

• Singapore water management: example of strategic, whole-system perspective guiding design AND implementation

21 F. Duchin SNO Conference

Page 23: Nanotechnology Supply Chains: A Framework for their ... › SNO2015 › images › Supply Chains Nov 9 2015.pdf · Nanotechnology supply chain as building block for a systemwide representation

Key features

• Civil society initiative, mutually reinforcing UN SDGs

• Focus on a concrete and strategic application

• Prioritize societal concerns and goals and new public-private business models

• Evaluate options with integrated LCA/Input-Output models.

***

22 F. Duchin SNO Conference