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FY 2004 The Subsidy Program Supporting Projects for the Development of
Carbon Dioxide Fixation and Utilization Technologies
Research on the Development and Utilization of
Indicators
for
Sustainable Consumption
(FY2004 Summary)
March 2005
The Society of Non-Traditional Technology (SNTT)
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Contents
Introduction .................................................................................................................................................1
Overview of the research.............................................................................................................................1
Organization ................................................................................................................................................2
1. Collection, analysis, and the framework of sustainable consumption.................................................3 1.1 Collection of cases and framework of concept ...........................................................................3 1.2 Development of methods for social acceptance in Europe: Car-free project ..............................5
1.2.1 Background....................................................................................................................5 1.2.2 Methods .........................................................................................................................5 1.2.3 Results and consideration ..............................................................................................6
1.3 Household-level modeling for sustainable consumption ............................................................7 1.3.1 Summary........................................................................................................................7 1.3.2 Approach .......................................................................................................................7 1.3.3 Results and discussion ...................................................................................................8
2. Development and popularizations of environmental efficiency........................................................10 2.1 Development of product eco-efficiency indicators by quantitative analysis of functions.........10 2.2 Development of a quantitative evaluation method for social acceptance
through consumer surveys.........................................................................................................11 2.3 Quantitative analysis of the change of happiness based on consumption patterns....................14 2.4 Constructing environmental efficacy indicators from the perspective of lifestyle....................17 2.5 Analysis of the business potential to achieve sustainable consumption....................................21
2.5.1 Summary......................................................................................................................21 2.5.2 Methods .......................................................................................................................21 2.5.3 Results and discussion .................................................................................................21
2.6 Evaluation of community based product service systems.........................................................22 2.6.1 Summary......................................................................................................................22 2.6.2 Objectives and methods...............................................................................................22 2.6.3 Results and discussion .................................................................................................23
2.7 Popularization and promotion of sustainable consumption on a global basis...........................24 2.8 Service engineering: A new engineering discipline leading industries
toward sustainable consumption ...............................................................................................28
3. Utilization of indicators in international activities ............................................................................30 3.1 Utilization of eco-efficiency indicators in global green purchasing activities ..........................30
3.1.1 Environmental communication methods to promote green purchasing by consumers ...............................................................................................................30
3.1.2 Product selection criteria and information for organizational green purchasing .........32 3.2 Summary of the Workshops......................................................................................................33
3.2.1 The Third International Workshop on Sustainable Consumption, Tokyo ...................33 3.2.2 International Workshop in Oslo...................................................................................33
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3.3 Summary of the working group ................................................................................................ 34 3.3.1 Summary of workgroup activities in the fiscal year 2003........................................... 34 3.3.2 Summary of workgroup activities and results in the fiscal year 2004......................... 35
Conclusion ................................................................................................................................................ 36
Related Websites ....................................................................................................................................... 38
List of Figures Figure 1 The framework of sustainable consumption ............................................................................ 3 Figure 2 “Car-free project” in Floridsdorf ............................................................................................. 5 Figure 3 Process of the study ................................................................................................................. 5 Figure 4 Per capita CO2 emissions intensity in kg CO2/€ ...................................................................... 6 Figure 5 Regional impacts of the car-pooling scenario on wages by wage bracket,
for selected years, in millions of nominal dollars .................................................................... 8 Figure 6 National impacts of the car-pooling scenario on wages by wage bracket,
for selected years, in millions of nominal dollars .................................................................... 9 Figure 7 Eco-efficiency values of various models of Washlet
(warm water cleansing type toilet seat) ................................................................................. 10 Figure 8 Relation between eco-efficiency and price competitive power
(Washlet – warm water cleansing type toilet seat)................................................................. 11 Figure 9 Conceptual flowchart of the QFD method............................................................................. 12 Figure 10 CHap and its constituting factors for three durable goods..................................................... 17 Figure 11 Trade-off relation between preference and CO2 as represented in an image ......................... 20 Figure 12 Average values per initiative and criterion ............................................................................ 22 Figure 13 Acceptability of sustainable consumption actions in relation
to economic incentive levels (Estimated) .............................................................................. 26 Figure 14 Relation between adherence to car ownership and use of car sharing service....................... 27
List of Tables Table 1 Sustainable consumption database........................................................................................... 4 Table 2 Eco-efficiency indicators ......................................................................................................... 4 Table 3 Evaluation table for sustainable consumption checklist, example “gardening” .................... 16 Table 4 Proposed lifestyle modules and consumer acceptability........................................................ 19 Table 5 Explanation of the criteria used for the evaluation of sector-wide schemes .......................... 21 Table 6 Comparison of average resource consumption in industrial
and household washing facilities and by washing machines ................................................. 23 Table 7 Washing characteristics for household- and launderette-based laundries .............................. 23 Table 8 Target and calculated values of reduction in CO2 emissions ................................................. 24 Table 9 Typical volunteer actions likely to be accepted by consumers .............................................. 25 Table 10 CO2 reduction effect and acceptability of self-active actions for sustainable
consumption (Comparison between before and after disclosure of information on incentives).............. 25 Table 11 Simulated acceptability of car sharing service....................................................................... 26
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Introduction
In November of 2002, The Society of Non-Traditional Technology initiated a three-year project on sustainable consumption (SC) as one of the methods to halt global climate change. The official title of this project is “Research on the Development and Utilization of Indicators for Sustainable Consumption.” Dr. Atsushi Inaba, the Director of the Research Center for Life Cycle Assessment, National Institute of Advanced Industrial Science and Technology (AIST), is the leader of the project, which was approved by the Japanese Ministry of Economy, Trade and Industry within the framework of “The Subsidy Program Supporting Projects for the Development of Carbon Dioxide (CO2) Fixation and Utilization Technologies.” The project has been accomplished with the collaboration of various domestic and international research groups. The goals of this project are to establish environmental efficiency indicators to evaluate both the degree of CO2 emission reduction and consumer acceptance, and to present ways of utilizing such indicators in international activities. During the implementation of this project, we initially gathered proposals from various points of view, which allowed us to establish different definitions of sustainable consumption. We also calculated CO2 emission reduction by consumers’ sustainable choice in comparison with unsustainable options. In addition, quantitative evaluation methods of consumer acceptance towards sustainable products and services were developed. Combined with CO2 calculation and consumer acceptance evaluation, we improved the eco-efficiency indicators. Through research on the framework of international activities such as Green Purchasing, Type III Eco-labeling, and Integrated Product Policy, we established the fundamental principles of the driving forces of SC. This document summarizes the three-year project in the following order: “Collection, analysis, and the framework of sustainable consumption,” “Development and popularization of environmental efficiency,” and “Utilization of indicators on international activities.”
Overview of the research
To progress the Project on Sustainable Consumption, officially called "Research on the Development and Utilization of Indicators for Sustainable Consumption," our research focused on the following matters during this fiscal year (FY 2004): * Gathering of case examples through consumption trend surveys and reorganization of the concept; * Development of eco-efficiency indicators focusing on product functions; * Development of eco-efficiency indicators per product/service function, principally focusing on social acceptance; and * Development of eco-efficiency indicators that can be used for evaluation of CO2 emissions from a consumer's individual lifestyle. As to the development of eco-efficiency indicators from the perspective of product functions, the conjoint technique was applied to both environmental load (denominator) and functional value of a product (numerator) in converting them into economic or monetary values in order to promote general acceptance of these indicators. For development of eco-efficiency indicators per product/service function, examination was made to determine up to which level QFD (Quality Function Deployment) would be effective for quantitative
Objectives
• To find the ways to reduce CO2 emission by changing Consumption Patterns Nov.2002-Mar.2004
Examples
Calculation of CO2 reduction Evaluation of Acceptance
Development of new indicators
Green Purchase Type Ⅲ label IPP
Development of new methods
The Subsidy Program Supporting Projects for the Development of Carbon Dioxide Fixation and Utilization Technologies, METI
Research on the Development and Utilization of Indicators for Sustainable Consumption
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evaluation of the aspects to which a general consumer usually attaches importance when buying products. The development method to be used was then modified based on the results obtained from this examination. For development of eco-efficiency indicators from the perspective of a consumer's individual lifestyle, we decided on the "value of adherence" which varies between individuals in different situations. Consideration was also given to the anticipated rebound effect1) so as to develop an approach that can encourage overall CO2 emission reductions without strain. On the other hand, to evaluate social acceptance of the proposed indicators, which constitutes a key factor for their dissemination or popularization, analyses were made of the results from the evaluation of social acceptance conducted on Product Service Systems (PSS) examples in the EU, as well as on the relationship between consumption and happiness, which is a new perspective to be taken into account. Additional activities included discussions and reviews about potential problems that may arise when the proposed indicators are used as part of product information to promote green purchasing or procurement. Finally, a total of seven international workshops on Sustainable Consumption were organized during the 3-year project period, some in Japan and others in Europe, to promote sustainable consumption and international collaboration worldwide.
Organization
To accomplish this project, a Steering Committee was organized within The Society of Non-Traditional Technology. The committee was chaired by Dr. Atsushi Inaba, Director of the Research Center for Life Cycle Assessment, AIST, who also took charge as project leader. The project was carried out under the oversight of the Steering Committee. Under the control of the committee, three workgroups were set up: two in fiscal 2003, namely, the Social Acceptance Workgroup and the Workgroup on Utilization of Eco-efficiency Indicators, and one in fiscal 2004, namely, the Workgroup on Sustainable Production & Consumption of Food. These workgroups were organized to promote more extensive research on sustainable consumption. Listed below are the organizations that took part in this project.
List of Participants Organizations in Japan National Institute of Advanced Industrial
Science and Technology (AIST) Green Purchasing Network Institute for the Arts Mitsubishi Research Institute, Inc. Nikkei Research Inc. Japan Environmental Management Association
for Industry The Society of Non-Traditional Technology
International Organizations Büro für Analyse & Oekologie (Switzerland) Norwegian University of Science and Technology (Norway) Sylvatica (USA) The Centre for Sustainable Design at the Surrey Institute of
Art & Design, University College (UK) The International Institute for Industrial Environmental
Economics at Lund University (Sweden) Wuppertal Institute for Climate, Environment, and Energy
(Germany)
1) A Rebound Effect refers to increased consumption that results from actions that increase efficiency and reduce CO2 emissions. For example, a program that reduces CO2 emissions by X% does not usually result in a full X% reduction in CO2 emissions, because consumers find that they can afford to reinvest a portion of potential energy savings on comfort, so resulting in new emissions of CO2. When actions effective for CO2 reduction encourage further reduction of CO2, it is called an "Acceleration Effect."
The Society of Non-Traditional Technology * Workshops, committees, etc.
Steering committee
Chairperson & Project Leader: Dr. Atsushi INABA (Director, Research Center for LCA, AIST) WG: Social Acceptance (FY 2003) WG: Utilization of Eco-efficiency Indicators (FY 2003) WG: Sustainable Production & Consumption of Food (FY 2004)
Advisory Board
Organization
Ministry of Economy, Trade and Industry (METI)
Collaborators in Europe/USA
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1. Collection, analysis, and the framework of sustainable consumption
1.1 Collection of cases and framework of concept
The first task of the Project on Sustainable Consumption, started in 2002, was to gather case examples from various countries. In keeping with discussions about the definition of "sustainable consumption" based on the collected case examples, and referring to literature and website information on this subject, we have dedicated ourselves to research on development and dissemination of new indicators that can be practically used for evaluation and measurement of sustainable consumption. All these data, records, information, documents and materials used by us during the three years of research for the project have been reorganized and summarized into a database for the study of sustainable consumption. This database contains useful resources to make the successful results of the project known to the public, hopefully promoting the utilization of the developed eco-efficiency indicators. Continued efforts are required to gather advanced information and substantiate its contents; still more to lead consumers toward sustainable solutions.
The database is organized so that anyone can search for necessary data resources, starting from a map showing the framework of sustainable consumption. It is divided into four resources (sub-databases): Concept, Tool, Policy and Value. A search can be started either by clicking on one of these file buttons or by entering a keyword.
The search results are displayed in a table composed of the following five categories: (1) words; (2) case examples; (3) research outcome from this project; (4) related websites; and (5) literature. When the user selects a desired item, the data appears on the display. The database also contains the eco-efficiency indicators developed under this project.
Figure 1 The framework of sustainable consumption
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The whole database is classified into four data sources (case examples; project research outcome; related websites; and literature). Listed in Table 1 below are these four data sources cross-referenced with the above-mentioned four resources (sub-databases) with the corresponding item categories (sub-sub-databases) contained in each of them, along with the number of data files finally cataloged in each sub-sub-database per source. (Since one item category may contain two or more contents sections, the number of sub-sub-databases may not match the number of items.) The database includes a total of 134 contents sections (as of February 1, 2005).
Table 1 Sustainable Consumption Database
(Number of contents)
Classification Item category European case examples
Project research outcome
Related websites Literature Subtotal Total
Acceptability 3 2 1 6 12 Lifestyle 5 3 5 17 30
Community 1 1 7 6 15 Concept
PSS 2 5 1 2 10
67
Eco-efficiency 4 4 4 2 14 LCA 2 2 0 0 4 LCC 0 0 0 0 0
Eco-labeling 4 3 0 1 8 Green
purchasing 0 1 0 0 1
Tool
Communications 2 0 6 7 15
42
Education 0 0 7 0 7 EPP 0 0 0 0 0 Policy IPP 0 1 1 3 5
12
Quality of life (QOL) 0 0 7 1 8
Value Happiness 0 1 3 1 5
13
Total 23 23 42 46 134
Listed below are the three newly developed eco-efficiency indicator groups:
Table 2 Eco-efficiency Indicators
Indicator Group 1 Indicator Group 2 Indicator Group 3 Area Product function Social acceptance Lifestyle
Target user Producer Producer/Consumer Consumer
After three years of research and development activities, we were able to complete the Sustainable Consumption Database, which is a comprehensive set of all available data on sustainable consumption. This database, which represents the unification and integration of an extensive volume of related information, is expected to contribute much to future achievement of wide-ranging sustainable consumption, along with the newly developed eco-efficiency indicators. Eco-efficiency indicators especially meet the challenge of sustainable consumption as they have been studied and researched from various perspectives, including economic and functional values of products, quantitative evaluation of consumer behavior, and modularization of lifestyle.
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1.2 Development of methods for social acceptance in Europe: Car-free project
1.2.1 Background
As one of the cases of sustainable consumption, the car-free project in the district of Floridsdorf, Vienna, Austria, was selected and analyzed to clarify its environmental burden. A qualitative analysis was also carried out through a series of interviews of the inhabitants. In 1999, the district of Floridsdorf was made public as a car-free demonstration project in Vienna. The site is a housing complex comprised of 244 tenants living in quarters of varying space (50-130m2). Parking space is available only for bicycles and a garage for shared cars; investment has been made in the construction of common spaces such as a lounge and playground instead of car parking space (Fig. 2). To find out what lifestyle aspects make a difference in the environmental impact of the households, three areas are picked up and compared: car-free settlement, other settlement in close proximity, and average Austrian lifestyle.
Figure 2 “Car-free project” in Floridsdorf
1.2.2 Methods
In this study, the 2000 Consumer Expenditure Survey (Kloz, 2002) was referred to for understanding of the average Austrian household’s activities and variables. Both quantitative and qualitative surveys of households in the two settlements was also conducted to describe their consumption patterns. Extended Input-Output (IO) analysis consists of input-output tables (Kolleritsch 2004) and environmental accounts (Eurostat 2001), introducing a new environmental profile tool, which enables the identification and investigation of consumption patterns and assessment of the overall environmental impacts of those patterns in Austria. Life Cycle Assessment (LCA) data was also used to model these impacts. The survey was conducted in 2004, and obtained 42 and 46 answers from the car-free and reference settlements respectively.
Extended IO LCAConsumption Pattern Analysis
Consumer Expenditure Survey Survey for the households
Environmental Profile Tool
Figure 3 Process of the study
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1.2.3 Results and consideration
Our study indicates that the car-free housing project indeed has lower CO2 emissions, measured per household, per capita, or per Euro spent, than the reference settlement. Both settlements have lower emissions than the Austrian average.
The transportation proportion of the car-free area is 35%, and is 44% and 42% for the reference area and Austrian average respectively. The emissions for the Austrian average are higher, because 1) oil or natural gas are used as heating fuels, whereas other settlements use “renewable” district heating; 2) there is more car use, and 3) the overall per-capita income is higher. Although tenants in the car-free settlement show environmental awareness on a much higher level, ecologically sound behavior is more or less restricted to everyday transport (extensive use of bicycles and public transport for daily needs), and does not apply, e.g. for air trips. Since we did not find a difference in the consumption of organic food, which was high in both settlements, we did not further investigate behavior not related to energy use and transportation. The overall differences between the settlements in CO2 emissions and energy use are small, and much lower than the variations inside the settlements. This may come as a surprise, but the result is not difficult to explain.
-
1 000
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3 000
4 000
5 000
6 000
7 000
8 000
Car free Reference Average
kg C
O2
emis
sion
s pe
r cap
ita
OtherHotel+Restaurant Food
Car + moped HolidayTransp Publ.Transport Energy
0.33 kg/€
0.49 kg/€
0.40 kg/€
Figure 4 Per capita CO2 emissions intensity in kg CO2/€
For the car-free settlement, 53% of the emissions are estimated from the IOA, i.e. it belongs to the categories food, hotels and restaurants, and ‘other.’ To estimate the ‘other’ emissions, we used a typical expenditure pattern as derived from the consumer expenditure survey. Any systematic variation in these expenditures is not covered by our assessment. In the categories assessed by LCA, the reference settlement had 33% higher CO2 emissions per capita than the car-free settlement.
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The rebound effect is important (Hertwich 2005). It is assumed here that everybody spends their income; any money saved by not owning a car goes to some other purpose. The “other” category has only 14% of the emissions intensity of cars (Table 19), but this is more than 0. If the money saved is spent on air transport, much higher emissions can result. As far as we could determine, these households eat out more and have a higher consumption in the ‘other’ category.
For the car-free settlement, air transport accounts for 64% of the CO2 emissions associated with energy and transport. For the reference settlement, this number is only 43%. The per capita CO2
emissions of energy and transport not considering air transport are 720 kg in the car-free settlement and 1500 kg in the reference settlement. The car-free settlement has lower emissions intensity in holiday transport, because of the use of trains and buses. This is not because the households do not use airplanes; in fact they travel slightly more by airplane than the reference settlement.
More detailed data on nutrition and other expenditure would be needed to confirm that there is indeed no systematic difference in the remaining expenditure categories.
1.3 Household-level modeling for sustainable consumption
1.3.1 Summary
This study addressed a dynamic, economic input/output life cycle assessment framework that evaluated pollution as well as the economic and social impacts of consumption alternatives. In fiscal 2003, we stressed “social efficiency of money” in which “needs satisfaction per capita income” was taken into consideration. For example, if country A spends more than country B to satisfy its nation’s needs, it can be said that the “social efficiency of money” of country A is lower than that of B. In fiscal 2004, we used US Occupational Employment Statistics (OES) and the Regional Economic Model (REMI) to explain the social efficiency of money. Car-pooling cases were selected and examined as to whether they would affect household level of income, health, and welfare. Evaluation of regional/national economic impacts of the car-pooling scenario on wages was also conducted.
1.3.2 Approach
Major consumption decisions, and the consumption-related satisfaction of needs, both occur at the level of households. On the impact side, such basic health issues as life expectancy are related to household income, and therefore the full group of people in a household experience the health and well-being impacts of income changes. To advance our ability to estimate the household-by-household effects of economic impacts, we make use of data from the 1999 OES survey from the US Department of Labor’s Bureau of Labor Statistics (BLS 2001), as well as of the REMI. In addition to CO2, we investigated a major portion of total population air pollution-derived health damage in the US: primary particulates, precursors of secondary particulates (NOX, SO2), and precursors of troposphere ozone (NOX, VOC). We defined a dynamic scenario on which car-pooling increased at a nearly linear rate during the period from 2001 through 2015. Beginning in 2001, car-pooling is simulated as leading to a 5% reduction in total regional expenses on both vehicles and parts, and on gasoline and oil. This cost saving rises linearly to 10% of the annual costs for 2005, and steadily onward to a 20% saving on vehicles, vehicle parts, gasoline, and oil costs by 2015. We calculated the total annual saving due to this increased transport efficiency, and allocated the saving so that each other category of personal consumption expenditure was unchanged.
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1.3.3 Results and discussion
Sustainable consumption decision makers will generally be interested in both local and regional socio-economic effects, as well as total supply chain environmental effects. Thus, to conduct our LCA, we actually have two simulations. One is the local area, and the other is a national-level simulation where we assume that the final demand shared track regional (net) changes associated with car-pooling change by the same amounts (as shares of spending) as within the local simulation.
The results in Figure 5 show that the regional impacts of the car-pooling scenario grow over time. This comes as a result of the ongoing gains to the region’s industries from increased competitiveness due to the car-pooling scenario, relative to other regions in the nation. They also show that dramatic gains in wage payments and employment take place within sectors and jobs in the lower wage brackets. Indeed, the net change in employment in some of the highest-paying wage brackets is slightly negative.
The results at the national level are shown in Figure 6. Here the opposite trend is found dynamically, with the largest impacts taking place in the early years, relaxing to a steady positive impact by 2005. As in the regional case, dramatic gains in wage payments and employment take place within sectors and jobs in the lower wage brackets. Again consistent with the regional case, the net change in employment in some of the highest-paying wage brackets is slightly negative.
The results in the regional and national scenarios provide the basis for direct and disaggregated, household-level employment and income data, which are a necessary input to calculations of population-level life expectancy due to wage and employment changes.
Reg
iona
l Im
pact
s of
Car
pool
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on W
ages
by
Wag
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rack
et ($
)
Wage Bracket0 20K 40K 60K 80K 100K 120K 140K 160K
0
2
4
6
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10
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18
Key Selected Years2001 2005 2010 2015
Figure 5 Regional impacts of the car-pooling scenario on wages by wage bracket, for selected years, in millions of nominal dollars
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Nat
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l Im
pact
s of
Car
pool
ing
on W
ages
by
Wag
e B
rack
et ($
)
Wage Bracket0 20K 40K 60K 80K 100K 120K 140K 160K
0
20K
40K
60K
80K
100K
120K
140K
160K
Key Selected Years2001 2005 2010 2015
Figure 6 National impacts of the car-pooling scenario on wages by wage bracket, for selected years, in millions of nominal dollars
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2. Development and popularizations of environmental efficiency
2.1 Development of product eco-efficiency indicators by quantitative analysis of functions
To develop product eco-efficiency indicators, the following method was tried: the life cycle based integrating indicator (LIME) is used as environmental load, and conjoint analysis is used to obtain the monetary equivalent of the main function of the product. The ratio between the two is calculated to obtain an eco-efficiency value.
We examined this method because conjoint analysis allows integration through monetary conversion of the product function, whereas valuation units and degree of importance actually vary depending on the function. While, on the other hand, the market value of a product almost shows a correlation with its value perceived by the consumer (monetary value obtained by conjoint analysis), the manufacturer's price varies. The manufacturer's price may be influenced by the margin, actual situation of plant equipment, brand policy, financial position, etc., of each manufacturer. Conjoint analysis can eliminate these deviations, allowing proper evaluation of the value of each product function.
It was found that this method based on LIME and conjoint analysis could be used to quantify eco-efficiency values for discriminating between products, although it refers to a relative evaluation. (See Figure 7)
[LIME] on)(yen)(Integrati Y Load talEnvironmenanalysis][Conjoint )based)(yen-(function X Valueefficiency-Eco =
Eco-efficiency (Washlet – Warm water cleansing type toilet seat)
77
49 44
77
51
76
135
104114
8596
76
159
113
71
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94 98
116111
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Eco
-effi
cien
cy (X
/Y)
0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0
Eco-efficiency (X/Y) Value estimated by conjoint analysis (X) (in hundred yen) LIME Ver.1 (Y) (in yen)
Valu
e es
timat
ed b
y co
njoi
nt a
naly
sis
(Y) (
in h
undr
ed y
en)
LIM
E (X
) (in
yen
)
Figure 7 Eco-efficiency values of various models of Washlet (warm water cleansing type toilet seat) * Numerals denote product models, and characters manufacturers.
For consumers, a product is ideal if its functions and performance are good enough and at the same time it offers a competitive price. To a certain degree, the product functions to which importance is given are a matter of preference or of needs, and they vary consumer by consumer. Most desirably, the product price should be as low as possible though it should reasonably correspond to the level of the function desired by each consumer. To incorporate both eco-efficiency performance and competitive price in the indicator, we made the evaluation as illustrated in Figure 8, in which the axis of abscissas (x-axis) represents eco-efficiency, and the axis of ordinates (y-axis) price competitive power. Given the average of eco-efficiency values as a benchmark, the following are established:
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(1) Products with good eco-efficiency and with price competitive power (top right-hand quadrant) (2) Products with good eco-efficiency but without price competitive power (bottom right-hand
quadrant) (3) Products with poor eco-efficiency but with price competitive power (top left-hand quadrant) (4) Products with poor eco-efficiency and without price competitive power (bottom left-hand quadrant)
According to this, the four products of group (4) in the bottom left-hand quadrant are not attractive to consumers as they are poor both in eco-efficiency and in price competitive power, although this depends upon the type of benchmark.
Relation between eco-efficiency and price competitive power (Washlet – Warm water cleansing type toilet seat)
0.00
1.00
2.00
0 20 40 60 80 100 120 140 160 180
Eco-efficiency (functional value = conjointly estimated price)/environmental load (LIME)
Pric
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Average of eco-efficiency values = 95
13E 21A
7C
16D
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6F,1A, 4E
22C
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Figure 8 Relation between eco-efficiency and price competitive power (Washlet – Warm water cleansing type toilet seat)
Ranking of these products differs depending upon the type of benchmark: when only the environmental aspect is taken into account; when preference is given to the product value (functions, performance, etc.) as before; when importance is given to both the environmental aspect and product value (eco-efficiency evaluation). Therefore, eco-efficiency based ranking or discrimination of products can be quite useful for simultaneous assessment of the two important aspects of a product: environmental considerations and conventional product value. Furthermore, the level of price competitive power can be incorporated as shown in Figure 8 so that eco-efficiency indicators may be more flexibly and readily utilized for benchmarking "sustainable consumption" behavior. To this end it is necessary to verify the effectiveness of these indicators as an information tool (whether these indicators are readily acceptable by consumers), and in the meantime to keep building and improving an information disclosure system so that consumers can readily identify products that provide both good value and a smaller burden on the environment, i.e., products with high eco-efficiency as proposed here.
2.2 Development of a quantitative evaluation method for social acceptance through consumer surveys
In order that sustainable consumption becomes common practice, social acceptance is vital, not to mention the supply of products/services with high energy efficiency or eco-efficiency. The main purpose of this research is to propose a quantitative evaluation method for consumer behavior using the Quality Function Deployment (QFD) approach, which so far has been typically used for design of industrial products.
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Objective of behavior
Secondary requirements specificto the behavior
Preference selection (acceptance) of behavior to accomplish the objective
Characteristic evaluation of requirements according to physical/engineering criteria
遊生活における
労働生活における
知生活における
住生活における 基本的 要求 項目
食生活における
重要
度
衣生活における
時間節約 : 信頼性
環境調和性 快適性 利便性 経済性
Demand pattern per life situation is supposed to be the same.
遊生活における
労働生活における
知生活における
住生活における 基本的 要求 項目
食生活における
重要
度
衣生活における
時間節約 : 信頼性
環境調和性 快適性 利便性 経済性
In leisure life
In working/employmentIn intellectual life
In housing Primary requirements
In eating
Deg
ree
of
impo
rtanc
e
In clothing
Time-saving Reliability Eco-friendliness Comfort Usefulness Economy
Output variables
Expert judgment is required for correlation between the primary and secondary requirements
Expert judgment is required for correlation between the secondary requirements and options, as well as for decision on acceptable values
Secondary requirements and selection Subjective (psychological)
1.021.36
1.201.851.451.56
1.021.36
1.851.451.56
Input variables
Figure 9 Conceptual flowchart of the QFD method
To establish a quantitative evaluation method using QFD as proposed above, we had to clarify the following seven items: 1) types of consumer behavior to be surveyed, and their clustering; 2) how to set up primary and secondary requirements; 3) how to pose the questions in the questionnaire; 4) what criteria are to be used to measure and rate the degree of importance in the questionnaire; 5) how to set up QFD matrix relational values; 6) what evaluation method should be used to assess the consistency between calculated and measured values; and 7) the relationship between primary and secondary requirements. These seven items or components of the proposed method are individually described below:
1) Types of consumer behavior to be surveyed, and their clustering At first, consumer behavior was grouped into six categories according to various life situations (housing, eating, clothing, leisure, intellectual life, working/employment, and others), and 22 typical attitudes were studied. However, it was found that it did not always follow that the same pattern applies to the degrees of importance given to the primary requirements within the same life situation, and that there were differences in the selection range and in the level of costs even within the same scenario. To solve these problems, grouping based on life situations was altered based on axes in relation to products/services (durable consumer goods, everyday goods, meals, energy consumption, communications & information, and leisure). Added to each of these axes were new hierarchical grades of product selection and system selection, so that 27 behavioral situations could be studied. In consequence, two models of classification were tried. Actually, however, some behavioral patterns were eventually removed from the survey because they were deemed not to fit the proposed method (behavior peculiar to a limited number of consumers, behavior inadequate for calculation of acceptability, etc.).
2) How to set up primary and secondary requirements At first, three fundamental actions of everyday living ("commuting," "weekend dinner" and "washing") were selected to undertake a consumer survey over the Internet. Secondary requirements were sampled using the results from this survey, then laddering was used to upgrade these items to the primary ones, which are concepts of a higher order. At the same time, expert judgment was also tried using the results from laddering as references. Further, acknowledging the presence of psychological and physical factors, "choice by favoritism" was incorporated into all behavior in the survey as being one of the typical psychological requirements. As a result, it was found that the direct impact of the presence of a psychological requirement on consumers’ preference selection of options was relatively small, but that there was an indirect impact that was not
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physically measurable. In the last analysis, we made the following changes: requirements that are important themselves but which have no relation with options were eliminated; expressions of requirements were modified to prevent ambiguity of interpretation; and clear definition of preconditions was made.
The above changes improved the weighting of secondary requirements to reasonable values for some behavior. This revealed that point scoring was easier if the wording of secondary requirements was appropriately devised while preparing QFD matrices. Where an inconsistency is observed between calculated and measured values of consumer acceptance, possible causes may include the following: * Some secondary requirements require detailed conditions to be set; * Consumer has not enough experience or information for some secondary requirements because the
behavior is not frequent. It was therefore found that to generalize the proposed method some arrangements were still required, such as careful selection of clear and unambiguous wording, elimination of items not physically measurable, etc.
3) How to pose the questions in the questionnaire In the questionnaire survey, three questions were posed: Q1 (choice of an option); Q2 (weighting of requirement), and Q3 (frequency of behavior). These questions were repeated every year except the last year, when the relationship between Q1 and Q2 was disclosed, in consequence of which the way to ask Q2 was improved, causing an increase in the items whose calculated values of acceptance approximated to those actually measured. This might be because of the said disclosure: knowing the relationship, most consumers surveyed should have answered Q2 to reveal their reasons for their selection. It was therefore suggested that clear questions are important to enhance the accuracy of measurement of the degree of importance.
4) What criteria are to be used to measure and rate the degree of importance in the questionnaire survey conducted
The Semantic Differential (SD) technique was first used to measure and score the degree of importance. As a result, it was found that this technique allowed an awkward relative evaluation between one item and another although it enabled consumers answering the questionnaire to weight for each individual secondary requirement. It was also confirmed that consumer answers were apt to be concentrated in the middle ST scales, which is characteristic of this technique. To solve these problems of making distinction between one item and another in the degree of importance, we devised a scoring method in which consumers needed to score requirements in the order they esteemed important. Nevertheless, this scoring method is after all a scale because it is based on order ranking, even though it refers to a relative comparison among requirements. In view of this concern, the distribution method was also tried as it provided direct measurements. There was no appreciable difference between the results from the two methods.
5) How to set up QFD matrix relational values At the outset of studying QFD matrices (characteristic evaluation of secondary requirements by physical measures), we adopted the method developed by Y. Akao et al., setting up 0, 1, 3 and 9 as independent relational values for each secondary requirement. These, however, were for absolute evaluation without benchmarks, thus did not permit decisive determination of correlations. Consequently, we changed to the Delphi method based on independent interactive input by five selected experts. Normalization was made by scoring 0 for the requirement whose correlation with the options is smallest, and 10 for that whose correlation with the options is largest. The remaining requirements were scored relatively to these
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extremes. We consider that this method is the most reasonable and logical because normalization is made by treating each requirement independently without comparing it to other items. Nevertheless, some problems were posed in the evaluation method by requirements such as those which are important themselves but whose correlative evaluation with the options was difficult, or by other requirements that particularly involve subjective and psychological elements. These requirements were finally eliminated. Future study is required to find an evaluation method for these sorts of requirements.
6) What evaluation method should be used to assess the consistency between calculated and measured values
At first, the coefficient of correlation squared (r2) was used to evaluate the consistency between calculated and measured values of the worth of acceptance. However, in consideration of the wrong evaluation that results when the correlation coefficient (r) is negative, we decided to use a simple correlation coefficient (r). A biaxial graph may also be used for evaluation of consistency; in this case, one axis represents measured values, and the other calculated values. Consistency is evaluated by the slope of the regression line drawn by connecting the values expressed by points on the graph. Use of the correlation coefficient was on trial on this occasion. Examination of alternatives will be for future study.
7) Relationship between primary and secondary requirements Comparison was made between primary and secondary requirements of 22 typical activities, using both mean and total scores. The results showed no appreciable distinction in correlation between these scores. In the full-fledged survey conducted in FY 2004, a similar comparison was made in respect of five activities in six patterns. Although there were some limitations in a quantitative representation of the relationship between primary and secondary requirements, we were successful in classifying secondary requirements by primary ones, though in a qualitative manner by converging lower-order requirements upon primary requirements, which are concepts of a higher order, using the laddering method.
"Eco-efficiency" can be estimated based on the calculation of the worth of acceptance and environmental load, using the quantitative evaluation method for social acceptance established in this research. As an example, an eco-efficiency indicator was calculated to evaluate the worth of acceptance from the perspective of "car utilization purpose," as this area showed a relatively high level of consistency between estimated and measured values. It was shown that a consumer’s behavior to achieve his/her objective can be evaluated based on eco-efficiency per means by comparing the worth of acceptance with environmental load. While this method is very innovative, further reviews are required to ensure the reliability of these indicators.
2.3 Quantitative analysis of the change of happiness based on consumption patterns
Attempts to reduce CO2 emissions per capita show limited success – if at all. Especially, approaches relying primarily on technological progress that increases the energy efficiency of services have often failed to produce expected reductions in fossil fuel consumption. Such concepts need to be extended by considering two additional mechanisms. First, existing products or services are not just replaced by the new and more efficient alternative, and second, consumers have no intrinsic motivation to reduce energy consumption but rather to maximize ultimate utility. Therefore, ways to predict changes in consumption patterns and ultimate utility are needed in order to estimate CO2 emission changes due to the introduction of new technologies or products. Understanding the consequences of activities, products, and services, not only in terms of environmental life cycle impacts but also in terms of their impact on changes in consumption patterns and changes in utility, has been the major objective of this project.
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We propose two new tools for the sustainable consumption toolbox. First, a checklist approach to support design for sustainable consumption, and second, a method to quantitatively assess behavioral aspects of consumption and its consequences on CO2 emissions and happiness. The checklist approach serves for the early design stages of sustainable activities, products, and services (APS) when not all parameters are known and support is needed to come up with more sustainable alternatives. The quantitative assessment method is only applicable to APS that are at least partly introduced in the market for at least a year. It may serve to screen a large number of established APS and rank them according to the newly developed CHap index.
In order to assess sustainable consumption activities, products, and services, the CHap index is based on panel data that show changes in consumption patterns and subjective well-being in a household. CHap is then connected to the change of CO2 emission by a hybrid approach. We selected the purchase and use of an automatic clothes dryer, a mobile phone, and a personal computer as activities to demonstrate the method. The CHap index quantifies how much an activity contributes – considering all simultaneous changes and rebound effects – to an increase in happiness and at what expense in terms of changes in CO2 emission. This assessment process can be applied to a large set of activities that are suggested to contribute to more sustainable development. The result could then be a list that ranks those activities either according to their contribution to increased happiness, or according to their changes in CO2 emission or as a combination of both. This combination of both is the new index introduced here and called CHap:
CHapi =
ref2,
i,2 i
CO*
COHappiness
HappinessW
ref
∆−
∆
(1)
where happiness is measured on a scale from 1 to 5 and CO2 emissions in kg. This formula allows that increased happiness and reduced CO2 emissions contribute to higher scores of CHap. For Happinessref we use here the value “2” because people who feel “average happy” get a score of “3” which means that ∆Happiness will usually be smaller than 2. For CO2,ref a person’s equivalent per year has again been chosen here (10,000 kg CO2 per year per person). Further, the weighting factor W makes sure that an explicit weight must be given. A weight of W=1 would mean in our case that an increase in happiness by two units (lifting a person from “average happy” to “very happy”) is weighted as equal to a decrease of CO2 emissions by 10,000 kg/a.
Formula (2) allows, once W is set, that all activities can be ordered from the highest CHap to the lowest, where the top activities have the highest potential to contribute to sustainable consumption and the activities with the lowest scores are likely to have either high CO2 emissions or a low or negative impact on happiness (or both). Consumption elasticities are one of the new elements of this method. Here we are interested in change of demand due to changes in activities/product acquisition. The elasticity coefficients have been calculated as follows:
e = (NN) adopters-nonfor variableof Change
(NN) adopters-nonfor variableof Change - (NY) adoptersfor variableof Change
=
NNNNNY −
(2)
In order to calculate the resulting CO2 emissions from changes in induced consumption we use the following general formula:
CO2 emissions = e*NN*I = (NY-NN)*I (3)
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where I is the CO2 intensity of the variable in question and is derived from input-output analysis using an extended input-output table for the Japanese economy. Process analysis and literature data were used for the three examples of mobile phone, personal computer, and clothes dryer. For change in happiness we looked at the difference in change between the non-adopter group (NN) and the adopter group (NY).
An old Chinese saying suggests that gardening may make people happy all their lives. In Table 3, we assumed that having a dog, using a weekend house for maintenance work and walking, or starting yoga classes, may be competing alternatives to gardening.
Table 3 Evaluation table for sustainable consumption checklist, example “gardening”
Activities, products, services Gardening Dog Week-end
House Yoga Remarks
Number of covered satisfiers S 79 64 44 54 Number of covered needs N 8 9 8 10 Score S*N 632 567 352 540 Score from happiness enhancers H 22.5 23.5 10 24
Total score H*S*N 14’220 13’536 3’520 12’960 higher means better potential for SC Life Cycle Costs Euro/a 200 2000 15000 600 Ratio competing alternatives to gardening C 1 10 75 3 Ratio >1 is better for avoiding rebound
effects and worse for acceptability Hours 100% absorbed h 150 600 160 125 Ratio competing alternatives to gardening T 1 4 1.07 0.83 Ratio >1 is better for avoiding rebound
effects Occupied dwelling space m2 200 5 1 2 Ratio competing alternatives to gardening D 1 0.025 0.005 0.01 Ratio >1 is better for avoiding rebound
effects Other scarce resources 0 0 0 0 Ratio competing alternatives to gardening R 1 1 1 1 Ratio >1 is better for avoiding rebound
effects and potentially worse for LCA Share of people without required skills % 10 20 10 30
Ratio competing alternatives to gardening L 1 2 1 3 Ratio >1 is better for avoiding rebound
effects and worse for market potential Share of people without required information % 50 75 50 30
Ratio competing alternatives to gardening I 1 1.5 1 0.6 Ratio >1 is better for avoiding rebound
effects and worse for market potential Score for rebound effect C*T*D*
R*L*I 1 3 0.4 0.04 Ratio >1 means better for avoiding rebound effects
Environmental impacts analyzed by streamlined LCA
Primary energy kWh/a
-200 2000 15000 300
Rank order happiness and satisfaction score H*S*N 1 1 4 1 Highest score gives rank no.1 (only
difference > 20% justifies different rank)Rank order rebound effect 2 1 3 4 Highest ratio gives rank no. 1 (only
difference > 20% justifies different rank)Rank order impacts
2 6 8 4 Lowest Eco-Points gives rank no.1 (double weight rank order points, only difference > 20% justifies different rank)
Total rank order points 5 8 15 9 Just sum the three previous rows, lowest sum is best.
In order to apply equations (1) and (3), we relied on the impressive Japanese Panel Survey of Consumers (JPSC) provided by the Institute for Research on Household Economics (IRHE) of Japan. We performed the statistical analysis using the three most recent years, 1998-2000, for households of almost 1500
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young women. Figure 10 shows the happiness level, which is positive for mobile phones and personal computers but negative for clothes dryers (all not statistically significant). The darker bars indicate changes in CO2 emissions per household considering all changes in adopter households from those in non-adopter households. We can see that these bars are all heavily negative and this would not change if the CO2-emissions due to changes in family size (light bars) were considered. We should keep in mind that production and use for one year of a mobile phone, personal computer, and clothes dryer cause 18, 420, and 270 kg CO2 respectively. This is 10% or less of what Figure 10 shows and is positive not negative! This would imply a negative rebound effect of a factor of 10 or higher. The shown results are completely dominated by dramatic reductions in expenditure for transportation. This reduction cannot be explained by journeys having been avoided by smart use of the mobile phone and computer, so that we rather suspect that there are some biases.
Much has been achieved in bringing together so-far isolated fields relevant to sustainable consumption. The two new tools, one for design, the other for assessment, both include an assessment of environmental impacts. However, they also provide two different proposals on how to consider (the propensity for) rebound effects and (the potential for) utility maximization, the latter being a measure to predict the likelihood that the sustainable consumption activity indeed brings the expected satisfaction and may reduce the demand for additional (material) consumption. It is exactly this last purpose that to date remains a hypothesis awaiting further empirical evidence
2.4 Constructing environmental efficacy indicators from the perspective of lifestyle
This project included research into measures to be taken for dissemination of "sustainable consumption" from the viewpoint of people's lifestyle. In the research on “Formation of Eco-awareness and Environmental Information," the correlation between the general image of Earth-friendly living and actual practice of sustainable consumption was surveyed to identify a possible relationship between the images of eco-friendly lifestyle the Japanese people have in their minds and the consumption behavior they actually practice..
-4500
-4000
-3500
-3000
-2500
-2000
-1500
-1000
-500
0
500
using a mobile phone using a personalcomputer
using a cloth dryer
-0.04
-0.02
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
Change in happiness
CO2-emissions change of
consumption pattern
CO2-emissions change of family size
CHap
Figure 10 CHap and its constituting factors for three durable goods (left y-axis: CO2-Emissions in kg per household per year; right y-axis: change in happiness and CHap)
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The results of this survey showed a strong tendency in populations having a clear and positive image of Earth-friendly living to consumption that is closely linked with energy saving and recycling, suggesting that information on sustainable consumption and a vision of attractive lifestyle will enhance its spread.
Following the successful result obtained as above, we proceeded to the next research under the title of "Eco-friendly Lifestyle Modeling," designed to build lifestyle models based on sustainable consumption that will lead to reduction of CO2 emissions. A questionnaire survey was used to evaluate consumers' acceptance of these models. This research enabled us to establish a method to calculate CO2 emissions per lifestyle (finite differences from standard consumption behavior are used for calculations which are based on the fixed consumption expenditures and include anticipated rebound effects that may be caused by variation in household expenditures as a result of sustainable consumption), though in a limited way, and to verify that the proposed lifestyle models were to a degree acceptable to consumers.
The sustainable consumption policy based on the proposed lifestyle models can provide two advantages: First, publicity and advertisements can be used as means of communication, saving contact cost per capita as compared with education type communications. Secondly, ideas and schemes on the consumers’ own initiative can be expected.
The research to follow in FY 2004 should put particular stress upon the second of these advantages to create a tool that allows people to readily understand eco-efficiency indicators as well as the relationship between lifestyles and CO2 emissions. This tool should help each individual consumer learn intuitively the relationship between a desired, specific sustainable consumption lifestyle, chosen on his/her own, and the corresponding CO2 emissions so that they can be encouraged to devise their own ideas for sustainable consumption in everyday life.
Currently available data involving the relationship between consumption and CO2 emissions in Japan are practically exclusive to some specific commodities. Under these circumstances, the best way for consumers to shift toward sustainable consumption is to select particular branded products of environment-friendly design, such as household electrical appliances and cars. This situation is hindering the involvement of people in CO2 reduction as a way of life. To solve the problem, it is necessary to build an effective information tool that can provide consumers with examples of consumption behavioral patterns combined with lifestyles in each specific life scenario so that each individual consumer can select a desired lifestyle from his/her own perspective of sustainable consumption. To meet this requirement, we created models for calculation of the environmental load corresponding to each lifestyle through descriptions (table) of available combinations of consumption behavior with lifestyles (lifestyle modularization) and calculation of standard CO2 emissions corresponding to each pattern.
In addition, we used the lifestyle modularization proposed as above to develop eco-efficiency indicators that let each consumer know the trade-off relationship between CO2 and satisfaction resulting from the selected lifestyle, along with a handy tool allowing repeated display of the corresponding trade-off. These indicators and the tool are the successful outcome of partially accomplishing the intended objectives of this research; namely, to encourage consumers to devise ideas for sustainable consumption on their own initiative and to provide them with means/tools that will permit sharing of such ideas among consumers.
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Table 4 Proposed lifestyle modules and consumer acceptability
Housing-based module
Prefer enjoying nature-oriented living in a traditional Japanese house
Prefer living in a Western style house good for privacy protection
Prefer living in a functionally designed house (energy saving, eco-friendly design, earthquake resistance, etc.)
Prefer living in a comfortable condominium with utilities, services and good administration
Prefer living in a rented house as I can move at will according to circumstances
No special preference/ adherence
Acceptability 36% 55.2% 81.3% 32.2% 22.6% 16.4%
Eating-based module
Prefer cooking to my taste even if food expenses are higher
Prefer timesaving, economical cooking taking advantage of bulk purchasing, precooking, etc.
Being a gourmet, prefer enjoying good meals in restaurants
Prefer enjoying rich sake, wines and alcoholic beverages
No special preference or adherence
Acceptability 31.3% 59.3% 31.9% 26.1% 19.5%
Household-based module
Like to buy advanced household electrical appliances that are comfortable, cheerful or useful for everyday life
Endeavor to choose energy-saving household electrical appliances though relatively expensive
Prefer buying lifelong furniture and interior decoration if much money is to be invested
Rental furniture and household electrical appliances are more than enough
Prefer dramatically saving household energy costs
No special preference/ adherence though they are must-have items
Acceptability 43.2% 51.9% 30.6% 8.0% 48.2% 31.5%
Fashion-based module
Prefer quality top brands; fashion-consciousness requires genuine articles
Prefer the leading fashion for everything, keeping a sharp eye on shops, books, etc.
Prefer buying lots of good commodities, keeping a constant eye on bargain sale and outlet information
Prefer buying things at mass sale stores or hyper-/supermarkets at reasonable prices
Like to buy lucky finds at used clothes stores and flea markets
Tend to buy as necessary without special preference/ adherence
Acceptability 13.1 12.9% 38.7% 54.5% 16.8% 58.9%
Leisure-based module
Prefer staying relaxed at home on holidays
Prefer going out on holidays for sports and other activities
Prefer spending all my leisure dedicated entirely to my hobby
Prefer having a good recreation time together with my family or friends
Feel happiest when I am dedicated to handicrafts, creative activities, gardening, etc.
Prefer going out every weekend for sports, shopping, theaters and cultural activities
Acceptability 69.6% 34.0% 53.7% 57.5% 27.8% 46.9%
Travel-based module
Have a passion for traveling; wish to travel so far as time and money permit
Prefer enjoying a variety of activities while on a journey, such as sports, shopping, gourmet meals
Prefer staying at one place, feeling relaxed in a resort hotel or countryside hot-spring inn
Can enjoy any destination as long as I have a good time together with my family or friends
Don't like traveling; prefer staying relaxed at home, enjoying hobby
Prefer passing every weekend at my second house
Acceptability 36.9% 44.0% 67.1% 71.4% 12.8% 13.7%
Car-based module
Car is an important part of my life; tend to select a model with great care
Tend to place stress upon a comfortable, family type car
Tend to place stress upon fuel consumption as it is essential
Car is not necessary; use of a rental car or taxi is more than enough
Prefer selecting a hybrid model or other eco-friendly model
Acceptability 31.0% 67.0% 48.8% 11.3% 24.9% n=825
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Average CO2 emission level
Fixed level
Preference
CO2 emission (%) 0
Eco-efficiency Indicator Models
Average model
Low eco-efficiency model
High eco-efficiency model
Figure 11 Trade-off relation between preference and CO2 as represented in an image
Simultaneously, however, the problems involved in this also became clear. One of the major difficulties was the "rebound effect," which is a typical problem when dealing with various overlapping lifestyles or life scenarios. A rebound effect refers to increased consumption (increased emission of CO2) in one phase of life, that results from the practice of sustainable consumption in another phase. We attempted to develop a tool and indicators that incorporate the rebound effect by estimating a mean CO2 emission level per module and standard expenditure per implementation of each module, so that the rebound effect can be incorporated under the restricted condition of fixed household expenditure. Nevertheless, it was not successful because of lack of exact data about the time element involved in consumption behavior.
The second problem found during the research was that, in some cases, a high CO2 emission level was shown for a module deemed to have been selected by a highly eco-conscious cluster. This may be attributable to the fact that there was no alternative but to use actual data (questionnaire data) obtained from consumers, meaning that the module should have reflected the following chained structure: "Highly eco-conscious" = "Can afford to have interest in environment" = "Rather high consumption as compared with people belonging to other clusters." As a result, while the module itself should have represented a low environmental load, the emission level estimated on the questionnaire data was high, showing an apparent incoherence.
This problem raises two points: on one hand, we must review the method of sampling source data for calculation of CO2 emissions; on the other, there is a problem in the eco-friendly behavior itself, in that in practice a consumer's income level is the determinant of eco-friendly behavior (behavior contributing to reducing environmental load) rather than the consumer's eco-awareness level. This tendency was clearly shown in the household-based module, which is associated with living necessities. Substantial discussion and review will be required in the future regarding how to strike an even balance between a lifestyle module like this (an essential area of life in which there is little room for variation decided by the consumer's will), or like the car-based module that largely depends on the local conditions of the region in which the consumer lives, and other modules representing the areas of life in which the consumer can make choice at will. The same is true of applicable indicators and tools.
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2.5 Analysis of the business potential to achieve sustainable consumption
2.5.1 Summary
The “Triple Bottom Line” (TBL), in which economy, society and environment would be taken into consideration, is a factor in the business shift towards sustainable production and consumption. By fiscal 2003, our research had concluded that it would be necessary for businesses to have a corporate process and resource flow beyond the relevant section within the company. It also revealed that each company felt it difficult to clarify the hotspot of LCA, to standardize, and to grasp consumer preferences. In fiscal 2004, as the last year of this project, we dealt with the governance systems of business at the sector level. In order to evaluate the potential of sector-wide initiatives for achieving TBL improvements and contributing to sustainable consumption strategies, we examined three different sectors, namely Information and Communication Technology (ICT), food, and aluminum.
2.5.2 Methods
Sector governance can be defined as the relationship among participants in determining the direction and performance of a sector. From the literature review, four criteria (Table 5) were selected to evaluate sector-wide governance and survey questions were designed accordingly.
Table 5 Explanation of the criteria used for the evaluation of sector-wide schemes
Criterion Explanation Relevance This criterion questions the linkage between policy objectives and the overall problem of
sustainable production and consumption. It should be judged if given policy objectives were perfectly achieved, how significantly this policy intervention would contribute to the mitigation of the overall problem. The benchmark for the overall problem of SPC is the definition given in the first report of this research (Kuhndt, et al., 2003b)
Legitimacy & Effectiveness
This criterion questions whether the implementation of the policy intervention will achieve and/or has achieved its objectives.
Transparency & Control
This criterion requires transparent communication of activities of policy intervention and simultaneously allowance for third party evaluation of performance.
Efficiency This criterion considers how cost efficient the implementation of the policy intervention was and the extension of positive side effects attained through this policy intervention.
Source: Own compilation, WI, 2004, based upon Bleischwitz, 2004.
Six initiatives were chosen: the “Global e-sustainability Initiative (GeSI)” and the “GRI Telecommunications Sector Supplement” from ICT; “EUREPGAP” and the “Sustainable Agriculture Initiative (SAI)” from the food sector; and “Towards a Sustainable Aluminum Industry Project” and “Aluminum for Future Generations” from the aluminum sector. Quantitative analysis by a scoring scheme was carried out, by which an initiative can get a maximum of four points from each question.
2.5.3 Results and discussion
For relevance, initiatives in the ICT sector seem to well define their focus compared to other sectors (see Figure 12). GRI Telecommunication’s Sector Supplement has indicators aiming at the estimation of rebound effects due to consumer use of products and services, including social as well as environmental consequences. Regarding legitimacy and effectiveness, most initiatives lack the transparent use of sustainability performance indicators and hence fail to provide the basic requirements to set up quantifiable targets to stimulate action. In terms of transparency and control, it can be observed that effort is being made to transparently advise about activities. Most initiatives have detailed online information, provide downloadable documents and publish newsletters on a regular basis. However, a
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systematic approach for performance communication is the mission regarding initiatives, which currently do not have clear issue and goal identification. On the efficiency side, a major finding is that industry associations provide an effective structure to govern sustainability issues.
0
1
2
3
4
GeSI GRI Telekom EUREPGAP SAI Platform TSAI AFFG
Relevance Legitimacy & Effectiveness Transparency & Control Efficiency
Figure 12 Average values per initiative and criterion
This analysis revealed the sector level of good governance elements. As one example, integration of stakeholders including governmental organizations, employees, household representative organizations, financial institutions, and NGOs, is a necessary condition to gaining a broad understanding of sector responsibilities. Faced with complex problems that transcend sectors and borders and that hold implications for future generations, governance for sustainable consumption requires policy integration, along with improved integration between government and non-governmental institutions and the creation of a longer-term view in decision making.
2.6 Evaluation of community based product service systems
2.6.1 Summary
Implementing the vision of sustainable development requires dealing with the entire life cycle of products and services. A number of strategies and approaches have been developed to address environmental issues in manufacturing and end-of-life problems, but dealing with the problem of increasing consumption requires system solutions, where the strategy of shifting from product- to service-based offers and systems of provision is seen as promising. In this study, community based services (CBSs) is defined as a service with a positive contribution to the environmental, economic and social components of sustainability. In fiscal 2003, we evaluated CO2 emissions from several service scenarios (ownership, sharing, renting) for power tools. It was found that the largest contribution of CO2 was associated with renting and attributed to the shoppers’ distance traveled by car. Therefore, for fiscal 2004, a close to the end-consumer, community-based washing center in Sweden was chosen as a case study. This study concludes with an analysis of how to popularize product service systems (PSS) through CBSs.
2.6.2 Objectives and methods
The main goal of this study is to present the case of community-based washing centers in Sweden from historic and institutional perspectives, and to qualitatively and quantitatively evaluate and discuss their environmental effects. One of the results of this study is an evaluation of potential CO2 reduction from switching to community-based washing centers. The main research methods employed are literature
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reviews, visits to community-based washing centers, interviews with community planning authorities, providers of equipment for washing centers, with the first housing organization that introduced washing centers in the 1920s, and discussions with the Swedish Energy Agency on efficiency standards and improvements that can be reached by shifting from household to collective washing systems.
2.6.3 Results and discussion
The energy authority and other organizations have provided guidelines and advocate installation of energy-efficient equipment in communal washing centers. For example, the community-based washing centers are required to be within fifty meters distance to all households so that they are an integral part of the building plans of municipalities and housing companies. Currently, the proportion of Swedish households that are using public washing services is about 30%.
The comparison of energy consumption in household- and community-based washing service scenarios showed that assuming the same behavior in both cases, public washing facilities have lower energy consumption. From our estimations it follows that washing in communal launderettes provides an energy saving potential in the order of 30%, which is mainly due to the use of more professional equipment with better performance characteristics (Tables 6 and 7). Even more can be saved if professionals, who can optimize loading rates and the use of detergents, handle the equipment. Loading machines fully and washing with lower temperatures are very effective measures, which according to some studies can save up to 25% of energy. However, it seems that more water is consumed per unit of laundry in CBSs, which is likely to be due to the characteristics of the washing equipment, larger area (washing and cleaning of facilities) as well as behavioral aspects.
Table 6 Comparison of average resource consumption in industrial and household washing facilities and by washing machines
Whole facility Washing machines
Industrial wash Domestic wash Industrial Domestic Water, l/kg 16-18 12-16 11.8 10.9
Electricity, kWh/kg 0.2-0.3 0.9 0.13 0.21 Source: EPE 2001 Cylinda Ltd. 6.5-24 kg machines 3-6.5 kg machines
Table 7 Washing characteristics for household- and launderette-based laundries
Type of laundry: Household-based Launderette-based Typical max. load capacity: 5 kg 7-8 kg Typical loading capacity: 3.5 kg 4.6-5.3 kg Improved rate Electricity consumption (kWh/kg) washing machine: tumble dryer: drying cupboard:
0.21 0.73 0.82
0.13 0.48 0.76
38% 34% 7%
One clear benefit from using communal laundries is the reduction of equipment stock and faster upgrading of hardware. The typical lifetime of privately owned washing equipment is often 15 or more years. It is however recommended to change the equipment at least every 10-12 years, as new, more energy-efficient, models become available on the market. The equipment used in shared washing facilities is used much more intensively and has a much shorter lifetime (typically 5-6 years). Furthermore, public launderettes typically have specialized equipment, such as stand-alone high-speed spin-dryers, which are rare in domestic facilities. Drying equipment uses more energy than washing, and
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the use of spin-dryers before thermal drying allows a significant reduction of energy consumption. The proportion of Swedish households that are using public washing services is about 30%. However, some households are using the services even if they own a machine, which is hard to capture in the available statistics. Based on observations and surveys, the study makes a detailed analysis of this discrepancy and estimates that the total proportion of households using public launderettes more or less regularly is about 35-40%. This allows discussion of the total energy savings at national level, which is estimated to be in the region of 0.16 TWh of electricity per year.
At the same time, servicing solutions do not always lead to environmental benefits, which are strongly influenced by consumer behavior and the structural aspects of the service system. Here, one of the crucial roles rests with housing companies, which have a stake in offering these “near home” services. Many housing companies have a strategic interest in improving the sustainability aspects of their services, and together with the household communities share a common goal of developing a nice living environment and increasing the quality of life. Consumers are an important part in service creation, and to widely influence their environmental soundness and consumer involvement through information and education is crucial.
2.7 Popularization and promotion of sustainable consumption on a global basis
Unlike traditional researches in environmental evaluation, analysis and improvement, typically represented by Life Cycle Assessment, all of which deal with consumer behavior in a given and fixed way, in researches into sustainable consumption consumers are seen from the dynamic perspective. The latter, in addition, looks for clues to changing consumer lifestyles as a framework for a whole society, taking interactions between manufacturers and policy makers and consumers into consideration.
This project was intended to collect available case examples that are considered useful for the realization of sustainable consumption in Japan and to obtain other useful information for disseminating the collected examples throughout the country.
Taking account of the present situation of sustainable consumption activities that have not yet been widely taken up either abroad or domestically, during the 3-year research period of this project (FY 2002 through to FY 2004) we also focused on the "consumer's self-imposed eco-friendly activities" and "Product Service Systems” (PSS).
During the first year of the research, fiscal 2002, analysis was conducted of the percentage of population who take self-imposed action against global warming, together with the grounds on which some are encouraged to put these actions into practice, and others not. As a basis for this analysis, we used the 25 consumer actions itemized or recommended for reduction of CO2 emissions in the Guidelines for Measures to Prevent Global Warming, established by the Japanese government ("the Guidelines"). Shown in Table 8 below are the CO2 reducing effects resulting from consumer's volunteer actions, taking into account the consumer acceptability of each action itemized in the Guidelines:
Table 8 Target and calculated values of reduction in CO2 emissions
Target value range set up in the Guidelines
Calculated value range based on the implementation rate shown in
the Guidelines
Calculated value range based on the implementation rate resulting
from the questionnaire survey 1157-1559 1133-1554 1093-1665
(In 104t-CO2/year)
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Table 9 Typical volunteer actions likely to be accepted by consumers
Action Being implemented Willing to implement Use of water-saving shower head 14.1% 64.2% Efficient use of refrigerator 28.0% 58.2% Eco-cooking 17.2% 52.4%
The results of the conducted questionnaire survey show that a substantial number of consumers have not yet put the recommended CO2 reducing actions into practice because they are not well informed, and that many of them would implement such actions if they had proper information about their environment-friendly and energy-saving effects. The results also demonstrate some typical self-imposed actions that are very likely to be accepted by consumers in the future, as shown in Table 9. It was further shown that the factor of economy was the vital determinant in encouraging consumers to implement these actions in a voluntary way, although the implementation rate varied action by action. These findings conclusively suggest that the implementation rate of recommended CO2 reducing actions could be raised by publicizing their money-saving effect to consumers or introducing some incentives, such as subsidies, that motivate consumers to economize on resources.
In fiscal 2003, the second year of the project, the focus of our research was centered on the impact of economic incentives upon consumer behavior. To this end, actions for sustainable consumption were evaluated to look for efficient motivational measures, using the findings obtained from the questionnaire survey carried out in the first year. PSS (Product Service Systems) and some other potentially acceptable actions were included in the evaluation study in addition to those previously studied in fiscal 2002.
As can be seen in Table 10, the rate of acceptance of many actions was improved as compared to the data in fiscal 2002, a situation which shows the likelihood of growth of eco-awareness or interest in environmental issues among consumers. Figure 13 shows the correlation between economic incentive levels and the acceptance rates of actions for sustainable consumption. As is evident from this figure, it was clear that acceptability in relation to economic incentives largely depended upon the nature of an action.
Table 10 CO2 reduction effect and acceptability of self-active actions for sustainable consumption (Comparison between before and after disclosure of information on incentives)
Results in FY2003 Results in FY2002
CO2
reduction bef.
disclosure
CO2 reduction
aft. disclosure
Acceptance bef.
disclosure
Acceptance aft.
disclosure
Acceptance bef.
disclosure
Acceptance aft.
disclosure
(1) Change of incandescent lamp to the fluorescent one 65.5 126.3 46.7 90.0 50.1 85.9
(2) Replacement to a microwave oven with less power consumption 88.1 298.7 14.6 49.5 11.5 53.6
(3) Raising of air-conditioning temperature 104.6 125.0 72.1 86.2 53.5 82.3
(4) Recycling use of bath water (Japanese style bath) for washing 52.4 65.5 65.9 82.4 55.6 71.3
(5) Self-restriction on use of cars 297.7 438.4 32.8 48.3 18.9 －
* CO2 reduction effect is in thousand t-CO2/year, and acceptance rate in percentage.
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It was verified that acceptability of Product Service Systems (PSS) depended greatly upon the economic aspect, similarly to self-imposed action cases (see Table 11). One of the additional findings on Product Service Systems (PSS) was that consumers tend to feel bothered about the time and labor required for rental contracts. From these findings, we decided that specific detailed images are necessary for future study of sustainable consumption behavior. With regard to Product Service Systems (PSS) especially, future work to evaluate the consumer acceptance of these systems needs to consider the possibly different circumstances that will emerge following the impact of changes in social infrastructure and markets. More specifically, the diversity of circumstances we propose for this research includes: i) where the Product Service System (PSS) is developed on a vast scale covering a large number of areas or regions and the quality of available services is improved by scale merit; ii) where consumer acceptance is increased due to price cuts achieved by an increase in the number of users; and iii) where consumer acceptance is directly influenced by an increased level of eco-awareness or interest in environmental issues, or by the spread of relevant information among consumers.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 2,000 4,000 6,000 8,000 10,000
Desired level of incentive (yen)
Accept
abili
ty
①Change of incandescent
lamp to fluorescent lamp
②Replacement to a microwave oven
with less power consumption
③Raising of air-conditioning temperature
④Recycling use of bath water (Japanese style bath) for washing
⑤) Self-restriction on use of cars
Figure 13 Acceptability of sustainable consumption actions in relation to economic incentive levels (Estimated)
Table 11 Simulated acceptability of car sharing service
Price (yen/man-month)
Acceptance rate (%)
CO2 reduction effect (kt-CO2/month)
20,000 80.45 135 25,000 74.31 124 30,000 62.10 104 35,000 52.29 88 40,000 45.70 77 45,000 34.43 58 50,000 23.45 39 55,000 17.89 30 60,000 14.17 24
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As above, we approached sustainable consumption in fiscal 2003 from the aspect of change in acceptability resulting from change in product/service specifications. Keeping the problems found during FY 2003 research activities in mind, during the last year of the project under discussion (2004), we concentrated our efforts on the current positioning of PPS in the process of popularization of sustainable consumption. Car sharing was taken as a typical case of PPS and a verbal approach was used along with a questionnaire survey to rate the acceptability of this service to consumers; that is, to figure out the type of consumers willing to use this service and to define barriers peculiar to the service. We premised that a social system supporting this service was previously established, taking its business feasibility into account, and that consumers utilizing the service had been well informed.
The outcome of the analysis we conducted using the results obtained from the questionnaire showed that the more satisfied are the following conditions, the more readily the consumer accepts a car sharing service: - Lives in or around a midtown area; - Uses his/her own car only a few days a week; - Rather long driving time each day; - Use of car for shopping or leisure almost exclusively; - Positively eco-aware or eco-friendly minded; and - Belongs either to the low-income bracket or to the bracket with family income at a level of around 8
to 9 million yen per year.
More interested in car ownership: 55.2%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Willing to u se the service
Car
use
freq
uenc
y (C
ar o
wne
rs o
nly)
Unwilling to use the service
More interested in car ownership: 64.3%
More interested in car sharing service: 44.8%
More interested in car sharing service: 35.7%
Figure 14 Relation between adherence to car ownership and use of car sharing service
Our analysis additionally showed that poor knowledge of, and the resulting lack of recognition of, optional services constituted a big barrier to popularization of the system (although we have to admit that car sharing is not yet actually established as a social system); most of the surveyed consumers had no idea of optional services other than those selected by them. This means that acceptability of car sharing can be dramatically increased if consumers are made fully aware of the service. On the other hand, from the viewpoint of motivation (consumers are not interested in using services that clash with their beliefs or convictions, or with their behavior in other areas) it was shown that consumers might have more interest in car sharing if they were more conscious of environmental issues or if they had more information on why this kind of service was necessary. Our analysis additionally made clear that there was much uneasiness originating from feelings of uncertainty, such as "the service might be rather awkward to use" or "it might be troublesome in a certain way."
To sum up, our 3-year research proved that poor knowledge or information, resulting in lack of recognition, was the main barrier preventing consumers from implementing self-imposed actions for
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sustainable consumption or from using Product Service Systems (PSS), suggesting that a drastic increase in consumer acceptance of these actions and systems can be expected through extensive dissemination of the relevant information among consumers all over the country. Bearing this in mind, it was suggested that the following were of vital importance for sustainable consumption to be promoted and popularized: establishment of a system of economic incentives, a clear identification of popularization targets, and furtherance of consumer awareness and recognition of sustainable consumption.
On the other hand, concern among consumers regarding awkwardness or inconvenience is expected to continue as a barrier even when the above-mentioned suggestions are ready for putting into practice. Further in-depth discussions will therefore be required to solve this problem.
2.8 Service engineering: A new engineering discipline leading industries toward sustainable consumption
In recent years, people have been more concerned with services (rather than with products themselves), partly because of the tendency among manufacturers to expand toward becoming service providers. People used to place less importance on services than on goods. Taking the household expenses of Japanese families comprised of two or more members by way of illustration, services accounted for barely 36% of average household expenses in 1987. Since then, the percentage of services that account for household expenses has increased steadily, reaching 42% in 2002. On the other hand, much attention is being paid to the Product Service System (PSS), an up-to-date business style framed to provide consumers with integrated values of products and services, unlike the traditional style of the manufacturing industry, which is centered on product sales. Still, there are few, if any, researches that focus upon methodology for service engineering or PSS design incorporating product design.
In this section, we propose a new engineering discipline leading industries toward sustainable consumption, along with a practical approach to such engineering. The proposed engineering approach is for general use and independent from any particular area of products and services. More specifically, it refers to a service engineering approach that includes product design. We created the framework for a service engineering method along with the corresponding procedure, and for verification of its effectiveness we then applied it on a trial basis to improvement of the hotel services being offered in Italy.
The proposed service engineering approach roughly consists of five steps: 1) relationship modeling for agents participating in the service; 2) specification of behavioral scenario of service receivers and sampling of values (bearing costs) they will enjoy; 3) configuration of a feasibility structure for service providers; 4) hierarchical framing of degrees of importance given by service receivers or users; and 5) evaluation and selection of intermediate solutions.
A three-star hotel located in the province of Abruzzo, Italy, was chosen for this purpose. The hotel has an eye on developing new services that are attractive to its guests and that at the same time minimize the load adversely affecting the environment. Solutions generated by our improvement engineering design included: introduction of a natural light guiding system, installation of shielding films, goods rental service, and so on. These solutions were welcomed and highly appreciated by the hotel's operator, with the comments that all of them were innovative and that they would actually introduce some of them. This acceptance proves that our service engineering approach, proposed in this research, can be actually used for improvement of services.
Described below are the features of the proposed service engineering approach. Unlike the conventional product engineering approach, which places emphasis on the physical system to obtain product
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functions, the proposed engineering approach addresses the consumer's status change through enjoyment of values, combined with a system to achieve it. This approach permits the service provider or operator to provide services with a level of value closer to that desired by consumers, meaning that the solution created by this approach is larger than that created by the conventional product design approach, and thus a greater variety of solutions can be expected.
On the other hand, the following points were identified which require solutions in the future: introduction of a concept that represents the virtual user; application of the proposed approach to services to be provided by the manufacturing industry; addition of a process to allow generation of more creative design solutions; and quantitative evaluation of the generated design solutions.
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3. Utilization of indicators in international activities
3.1 Utilization of eco-efficiency indicators in global green purchasing activities
Green purchasing that gives preference to environmentally preferred products and services (products and services that have reduced effect on the environment as compared with competing products/services that serve the same purpose) is a useful initiative to encourage businesses to be aware of the environment through the market. This section outlines the results of our research on how environmental considerations should be communicated to consumers in green purchasing in which utilization of eco-efficiency indicators can be expected. Also given in this section are our proposals for product selection standards and relevant information for consumers, as well as for the anticipated orientation of international collaboration in green purchasing. The research was conducted based on the experiences of businesses and organizations in various countries who are successfully implementing green purchasing programs, policies or practices.
3.1.1 Environmental communication methods to promote green purchasing by consumers
While green purchasing is becoming an issue of growing importance for many organizations and businesses, its situation in the minds of individual consumers shows a completely different picture. The main factors that generally motivate consumers to buy things are price, quality and design. Few consumers consider the environment when making a choice during their purchases, even if they have an interest in environmental issues. We conducted a questionnaire survey over the Internet in order to find how environmental information on products should be presented so that it can be effectively communicated to consumers in a way that effects their choice of products.
When preparing the above-mentioned Web questionnaire survey, we hypothesized that consumers desire simplified, understandable and integral evaluation results, and that at the same time they look for convincing pieces of information demonstrating the reasons why the product is environmentally outstanding. To support these hypotheses, we created two virtual storefront eco-labels ('TOP ECO ASSESSED' and ' (5-STAR) ECO ASSESSED' labels) to show to consumers answering the questionnaire. These virtual eco-labels were intended to see whether they could bring about a change in consumers' selection behavior. The eco-labels were supposed to be put on a refrigerator and a bottled green tea. Illustrated below are those for refrigerators.
EEECCCOOO AAASSSSSSEEESSSSSSEEEDDD
REFRIGERATOR (Leading Japanese manufacturer's name)
Number one in energy savingBuy top green, maximize saving of your electricity bill.
CFC-free product, against ozone depletion and against global warming
Minimized use of toxic chemical substances
Japan Product Assessment Center (Certified (month/year)) http://www . . .
REFRIGERATOR (Leading Japanese manufacturer's name)
Number one in energy savingBuy top green, maximize saving of your electricity bill.
CFC-free product, against ozone depletion and against global warming
Minimized use of toxic chemical substances
Japan Product Assessment Center (Certified (month/year)) http://www . . .
EEECCCOOO AAASSSSSSEEESSSSSSEEEDDD
TTTOOOPPP Among six 400-liter class brands Among six 400-liter class brands
As it turned out, the second hypothesis was almost substantiated. Consumers have interest in the specific information (on energy saving, power consumption, pesticide-free, point of origin, etc.) that they want to have. Many consumers want to know how the product is better in these aspects when compared with competing products that serve the same purpose; in other words, consumers demand such specific information enough to make them change their minds in making a choice. With regard to the first
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hypothesis (consumers desire simplified, understandable and integral evaluation results), different findings resulted for the refrigerator and bottled green tea. Consumers’ interest in the integral evaluation was shown for bottled green tea rather than for refrigerators. This result may be because a bottled green tea is cheap and can therefore be selected with ease; here consumers’ buying behavior might also be readily influenced by the image attached to the product. Since a refrigerator is durable consumer goods, consumers might have attached more importance to its energy-saving effect and other specific pieces of information useful for long-range use than to the overall evaluation.
Consumers’ buying behavior is highly price-oriented, and what most concerns them is whether the product is beneficial to themselves. It is not at all easy to motivate consumers to change their buying behavior in the name of environmental issues, which consumers apparently do not directly connect themselves with. In addition, social and cultural backgrounds and familiar environmental issues differ country by country or region by region, and consumption patterns and consciousness of commitment to society vary depending on individuals. Therefore, what is successful in a particular country or region is not always effective in other countries or regions. Nevertheless, based on the diverse experience of various countries in experimenting with environmental communication methods and approaches, as previously reviewed, the following can be said to be common, effective approaches, which have widespread appeal and which are deemed to be utilized on an international scale:
[Approach appealing to Life Cycle Cost] Showing that eco-friendly behavior leads to cost curtailment is a point rather easy for consumers to accept because it directly indicates economic benefit for them. Consumers may be encouraged in making a "smart" choice if the manufacturer discloses quantitative information on the costs to be borne by consumers at each stage of a product’s life cycle (namely, the use, consumption and disposal as waste of the product) when they decide to purchase it. This approach, however, is practically limited to the appeal of energy or water saving and an extended product life, and may not be effective for appealing to such aspects of the product as its containing recycled materials, or the manufacturer's efforts to minimize impact on the environment. Attention must also be paid to the fact that this approach does not work when the value of the product itself accounts for an overwhelmingly large percentage of the cost over its entire life span.
[Approach appealing to health and labor-saving benefits] It does not necessarily follow that consumers select organic food because they fully understand its key feature of recovering natural circulating functions. Consumers often choose organic food as they simply believe that it is good for their health, and so organic food distributors often stress that point in their advertising, i.e., in their "environmental communication to consumers." On the other hand, not a few consumers see an advantage in simple packaging, as it saves their kitchen space and the labor of waste disposal. These examples show that even when a consumer's view is not legitimately environment-oriented or eco-aware, or differs from the intended environmental issue to be solved, things still work out from the comprehensive perspective of environmental conservation.
[Approach appealing to consumers’ self-satisfaction] Usually, people are satisfied and happy when they feel themselves to be of help to others. If making a choice for the environment's sake lets consumers feel happy because they think that they are doing good, things may work out right. To this end it is necessary to communicate to consumers in an understandable way the effect of their choice on achievement of a better environment. Storefront point-of-purchase advertisement or publicity on packaging will require a short and clear expression of the expected effect of their purchase on a better environment. Information on product test results from the viewpoint of
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environmental protection, combined with relevant articles, as in the case of "Eco Test," a German magazine, will be very useful for this purpose.
[Information reliability warranty or commitment] Amid the recent rapid growth of digital forms of information delivery such as the Internet, consumers have an increasingly better ability to find high quality information. Today, supported by a growing social interest in environmental issues, there is a flood of labels and information insisting on eco-awareness. Market players should keep in mind that not only proper products but also their environmental information is being exposed to consumers’ critical eyes for selection; in other words, reliability of warranty or commitment in environmental information is of vital importance.
[Utilization of eco-efficiency indicators] Consumers are looking for products that are good in function and quality, offered at reasonable or affordable prices, and that are attractive from the environmental perspective. Indicators permitting an overall evaluation integrating all these aspects may produce an expected effect on consumers’ behavior. Eco-efficiency indicators are still in the course of development, and we have to wait for future research results as to the consumer acceptability of these indicators, but our expectation is that they will become a useful tool for intelligent green purchasing.
3.1.2 Product selection criteria and information for organizational green purchasing
It is of vital importance for governmental organizations, businesses and other private organizations to determine the criteria to be used for selection of products in their green purchasing procedures. Governmental and public organizations in charge of promotion of green purchasing should provide guidelines, standards, evaluation tools, and information on individual products or suppliers for that purpose, so that these documents and data can be of help to organizations and businesses when selecting appropriate products or services.
So far, there has been no active movement for information exchange among countries, and each individual country has planned and prepared green purchasing standards and/or guidelines of its own. Amid the globalization of markets, however, product specifications are becoming increasingly similar across borders, and so are environmental considerations. While preparation of a green purchasing standard or guidelines from the very beginning requires a good deal of labor and time, it will be easier if existing standards and guidelines are available and can be referred to. If this contributes to promoting international coordination of relevant documents, it will also be beneficial to product suppliers since unified and common international standards and guidelines can help them save on the labor and time otherwise required for adaptation of their products and specifications to the green requirements of individual countries. In addition, from the two standpoints given below, it is important for suppliers to gather information on market-available products in the process of green purchasing. First, suppliers must have up-to-date information about available environmental technologies and the market trends of their desired green products when preparing their tender specifications and their own standards. Second, a systematically organized list of available green products is indispensable as a source database when actually making selection of such products.
Construction and management of a green product database at national and regional levels will be of vital importance for promotion of green purchasing and the activation of the relevant market. Our green purchasing experience in Japan may also be beneficial to other countries. It is further suggested that a global green product database be constructed for products that circulate worldwide.
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While Japanese governmental organizations usually award contracts based almost exclusively on the price insofar as bidders' specifications meet the specified requirements, many European governments use a comprehensive evaluation system based on total scoring; that is, the price, quality, functionality, maintenance and environmental considerations of each product are rated by points for final evaluation after it has been checked for the specified requirements (minimum prerequisite). This system allows a product to be successful in the bidding if it is judged excellent in terms of environmental aspects (as these increase the total score) even if it is relatively expensive. The essential criteria system being used by Japanese governmental organizations places, as a necessary consequence, certain limitations on suppliers' attention to environmental issues because of the need for ensuring the specified range of products, whereas the comprehensive evaluation system adopted by the governments of EU countries will certainly encourage businesses further toward eco-awareness as products having higher eco-performance are evaluated more favorably. The comprehensive evaluation system is additionally advantageous in that it allows score rating of the product life cycle cost; it will, for example, be particularly useful for evaluation of carbon dioxide (CO2) emissions for which no threshold values are available. Eco-efficiency indicators, which can be considered a sort of comprehensive evaluation system, have not yet been perfected to such a degree that they can be used for evaluation of products in organizational green purchasing, but it is anticipated that they will probably be accepted by governmental and public organizations because of their base concept of maximizing the environmental load factors.
3.2 Summary of the Workshops
Seven international workshops on sustainable consumption were organized during the 3-year project period, starting at Vienna in November 2002. Active, extensive discussions were held from which a lot of new research subjects arose, resulting in the organization of various working networks. This section describes the two workshops organized in the fiscal year 2004, the last year of the 3-year project period.
3.2.1 The Third International Workshop on Sustainable Consumption, Tokyo
This workshop was held in Tokyo (at the Shinagawa Prince Hotel) on October 21 and 22, 2004, to discuss the "Framework of Researches on Sustainable Consumption and Production." There were about 156 participants. 14 presentations were given by 13 Japanese organizations, and 9 presentations by 9 overseas organizations.
At this workshop the framework of researches on sustainable consumption was defined, though not definitively, by common consent of the participants, so sublimating sustainable consumption from its hitherto vague and unpopular concept. The concept of eco-efficiency was also proposed at this workshop as the means to measure social acceptance of consumer behavior. Consumers’ psychological motivations for their consumption behavior, such as "happiness," "satisfaction" and "well-being," were encompassed in the framework of the discussion for future study of evaluation and quantitative analysis. For the achievement of sustainable consumption, the participation of sociologists will in future be required, in addition to that of engineers and economists. Triggers must be identified in the analyses of consumers’ behavior and of the rebound effect. There were opinions indicating that we should even define people's lives and lifestyles.
3.2.2 International Workshop in Oslo
This workshop was held at the Gabels Hus Hotel in Oslo, Norway, from February 10 to 13, 2005, to discuss the "Contribution of Researches to Sustainable Consumption." There was a total of 38 participants. Twenty-nine presentations were given by organizations from Japan and other countries,
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focusing on future development of the knowledge and successful results obtained during the project period and on ways of leading research on sustainable consumption onto a global basis.
The first subject of discussion at this workshop was the necessity for definition of common keywords and the establishment of effective communications for continued research activities on sustainable consumption. It was questioned whether "sustainable consumption" was a mere process toward sustainable development or should be taken as a strategic policy. In relation to this question, a proposal was made stressing the need to incorporate psychological expertise in the research into the category of "Sustainable Living," so that more in-depth studies can be developed in the areas of time utilization, sustainable markets and fair consumption. The need of a tool for evaluation of related government policies was also pointed out, which should be used to examine the qualities of market and life in a comprehensive way and to analyze the efficiency of each quality as well as the factor of secondary effects to be avoided. Research into development of indicators to measure the quality of life (QoL) is required, which may be "Gross National Happiness” (GNH) for example, following GDP or GNP, and which should represent the national wealth in the true sense of the word. Gross National Happiness (GNH) may be used to assess the environmental, cultural or mental aspects of people of each nation. It is necessary to form a sustainable consumption research network by combining these areas with economic consumption and policy. Another opinion suggested the need to establish indicators to measure product service systems (PSS). Discussions were then centered on the importance of education and dissemination of information in motivating consumers to be citizens of the Earth for the furtherance of change in consumer behavior and lifestyles in the name of environmental protection.
As mentioned earlier, one of the key items on the agenda for this workshop was how we should develop the knowledge and successful results obtained during the project period, and how we should take the lead in research on sustainable consumption on a global basis. As the result of discussions on this subject, the "Oslo Declaration on Sustainable Consumption" was drafted and signed by nearly all participants. It was reconfirmed and agreed upon among the researchers who took part in the Oslo Workshop that there was a pressing need to maintain an international research organization on sustainable consumption, and that such research was the most promising path toward the achievement of a sustainable society on a global scale. This declaration was one of the successful results of the project.
3.3 Summary of the working group
In order to promote research on sustainable consumption in a more extensive way so that the resulting knowledge can be shared among as many people as possible and a shared network can be established, three workgroups were organized during the project period: two in fiscal year 2003, namely, the Social Acceptance Workgroup and the Workgroup on Utilization of Eco-efficiency Indicators, and one in fiscal year 2004, namely, the Workgroup on Sustainable Production & Consumption of Food. This last workgroup was organized to seek links between sustainable consumption and sustainable production using actual business operations in the food industry as examples. The goal of this workgroup was to make proposals for producers (the industries) regarding sustainable consumption.
3.3.1 Summary of workgroup activities in the fiscal year 2003
The Society of Non-Traditional Technology (SNTT) took charge of steering the Social Acceptance Workgroup and the Workgroup on Utilization of Eco-efficiency Indicators, organized in fiscal year 2003, and program planning was assumed by Mr. Washida and Mr. Nakahara, respective leaders of the said workgroups, in cooperation with the group secretaries. Four sessions of these workgroups were held, in June, August, October and November 2003, and some 200 participants attended in total. Of
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these, about half were from private businesses, showing industry's keen interest in sustainable consumption. Some of the participants attended two or more sessions.
The first and second sessions were to provide participants with information on sustainable consumption, and external lecturers were invited. One of the invited lecturers was Assistant Professor Nishio from the University of Tsukuba Graduate School, who talked about factors motivating people to reduce waste. In the third session, the following themes were presented to participants for discussion: "what should convincing indicators be?" and "vision of consumers committed to sustainable consumption; possibility and necessity of behavioral change in consumers." In the fourth session, group discussions by stakeholder were held; many participants gave their opinions and views, and all participants shared the awareness of problems. The importance of eco-education was also highlighted.
3.3.2 Summary of workgroup activities and results in the fiscal year 2004
The Workgroup on Sustainable Production & Consumption of Food comprised 20-odd members drawn from both the food industry and researchers, led by Mr. Kobayashi and Mr. Tahara. The Society of Non-Traditional Technology (SNTT) provided the secretariat, and six sessions took place in total. First, presentations were made by the workgroup members: "LC-CO2 Comparison of Precooked Pasta" by Mr. Satoh, Ajinomoto Co. Inc.; "Findings from the Life Cycle Assessment Project of the Ministry of Agriculture, Forestry and Fisheries of Japan" by Mr. Saitoh, The National Institute for Agro-Environmental Sciences; "Challenge of Recycling of Food Leavings at Convenience Stores" by Mr. Yamaguchi, Seven-Eleven Japan Co., Ltd., and so on. Based on these past experiences of sustainability in the food industry, we decided to conduct in-depth research during the fiscal year 2004 into "life cycle assessment of rice as a case example" and "tabulation of insecurity factors of the food supply in Japan". The following findings were obtained from this in-depth research thanks to the efforts of the members in each bringing data from his or her specialized field.
In the research on "life cycle assessment of rice as a case example," it was reported that the precooked rice on the market accounted for the highest level of CO2 emissions according to the team's analysis, and that this could have been caused by the packaging material. In the research on "tabulation of insecurity factors of the food supply in Japan," a list of insecurity factors was completed by tabulating data by degree of impact and frequency.
This workgroup was comprised of researchers, businesspeople and persons of learning and experience in the food life cycle field. Sustainable production and consumption in the food industry were selected as the subject of research, obtaining successful results in respect of the "life cycle assessment of rice" and "tabulation of insecurity factors of food supply." Establishment of benchmarks for rice is meaningful, as it is the staple food of the Japanese people. Another successful outcome from this workgroup is the collaboration system for subsequent research activities that resulted from the close connection among participants that was established through discussions at the sessions.
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Conclusion
The 3-year project on sustainable consumption, officially titled "Research on the Development and Utilization of Indicators for Sustainable Consumption," was set out by The Society of Non-Traditional Technology (SNTT) in November 2002. The project aims at developing quantitative indicators that are selectable by both industry and consumers at their own choice and which can be incentives toward reduction of CO2 emissions as a useful measure against global warming, and also at proposing ways of utilizing developed indicators in the context of sustainable consumption. To achieve these objectives, international collaboration was organized for joint and interdisciplinary research under the project, obtaining participation from five international organizations and six in Japan. Seven international workshops on sustainable consumption were held by the society during the research period, and the project was completed in March 2005.
In the initial phase of the project, our efforts were directed at collecting and analyzing case examples of sustainable consumption, particularly from European countries and the United States. Additionally, we proposed a keyword map showing the framework of sustainable consumption, which was finally adopted by researchers who discussed it at various sessions of the above-mentioned international workshops.
As to the initiatives for social acceptance (consumer acceptance) of products/services and for eco-efficiency indicators focusing on social acceptance, we were finally able to propose three specific approaches for eco-efficiency indicators: (i) an approach focusing on product functions; (ii) an approach focusing on consumer behavior using quantitative evaluation of social acceptance; and (iii) an approach focusing on evaluation of lifestyle.
As additional results, new perspectives on sustainable consumption also emerged out of various discussions held at international workshops, research and study meetings on the issue (eco-efficiency and social acceptance), and advisory board meetings, during the research period of the project.
By way of illustration, "rebound effect" was a typical factor that emerged from discussions in the course of research. During the research, it was demonstrated by calculations of actual CO2 emission levels that the rebound effect of CO2 reduction on these levels could not be ignored because such consumer behavior is often prone to encourage actions that could diminish the proper effect of CO2 reduction.
Future research into the relationship between lifestyle and CO2 emissions should therefore take this rebound effect into account, including the necessity of publicizing it to consumers. Greater awareness of the rebound effect should be a policy, because it is one of the key factors in promoting future CO2 reduction in the domestic sector.
Consumers’ "value perception" was another aspect that emerged from discussions during the research; Western researchers especially pointed out that consumption was always backed by consumers’ desire to improve "quality of life" and "happiness," and for "well-being." Given that consumption is encouraged by these values, what is most essential for the practical shift to sustainable consumption is to clearly define, through scientific analysis, the relationship between consumer behavior and these value concepts. Accordingly, we incorporated the relationship between consumer behavior and "happiness" into our research, actually conducting a survey among young women in Japan. The results obtained from this survey showed only a few significant facts verifying the assumed relationship; nevertheless, we believe that this research should be taken further.
In the last year of the project (FY 2004), we were able successfully to complete and present eco-efficiency indicators from the perspective of product functions, representing both environmental load
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and functional value of products in monetary terms. Because this achievement allows consumers’ value perceptions to be reflected in both the denominator and numerator of the eco-efficiency indicator, we believe we are a step nearer to producing indicators that can be used more widely, as they do not depend upon the type of product or service. Marking of eco-efficiency indicators on the "eco-leaf," which is a Type III eco-label, was also examined during the project. It was shown that most existing indicators presented at that time were not understood or known by consumers, and some other scheme is therefore required. The new indicators we propose here show the product values that suit consumer needs; for this reason, they are more understandable and acceptable by consumers than those existing, and thus their dissemination can be expected. To make them more practical, they must be applicable to many more products and services. The proposed eco-efficiency indicators can also be used for labeling in a green purchasing program, so further development can be expected.
The second approach refers to eco-efficiency indicators per product/service function using the social acceptance or consumer acceptance value calculated by the QFD (Quality Function Deployment) method. While there are still many points to be reviewed and clarified for the effectiveness and reliability of the indicators obtained, the point is that it was shown that comparison of acceptance value with environmental load allows consumer eco-efficiency behavior to be assessed.
The third successful result refers to eco-efficiency indicators based on evaluation of individual lifestyles. In this approach, eco-efficiency indicators are calculated using lifestyle, paying particular attention to the "value of adherence" that varies between individuals in diverse life situations. Although this approach still needs to be refined in the preset lifestyle patterns and CO2 calculation methods, it features the use of consumer lifestyle as a whole. This approach allows consumers to understand CO2 emissions in relation to their own consumption style in a more specific way; in addition, consumers can look for the most appropriate way of CO2 reduction without sacrificing the value to which each individual attaches great importance. It deserves special mention that the rebound and acceleration effects are taken into account in this approach.
As summarized above, this project aimed to propose eco-efficiency indicators that can support a policy or initiative to guide a diversity of consumer activities toward sustainable consumption. The substantial importance of this project lies in the challenge of a new research field, in other words, the issue of consumption viewed from the perspective of consumers, which has previously been unheard-of. The project is also of great importance in that for the first time in Japan it presented the framework and orientation for sustainable consumption.
Based on the collected cases, examples, and literature on sustainable consumption, the Society of Non-Traditional Technology (SNTT) has established a database on its website for reader's information.
As an additional note, the eco-efficiency indicators based on consumer lifestyle proposed by us in this project are being reorganized in an easier-to-understand way, are open to the public in the Japanese government's cyber pavilion at EXPO 2005 AICHI, JAPAN (Japan Cyber Pavilion on the Web), and are accessible to everyone.
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Related Websites
* The Society of Non-Traditional Technology (SNTT) Project on Sustainable Consumption Home Page http://www.sntt.or.jp/sntt/SC/top.html
* Research Center for Life Cycle Assessment Home Page, National Institute of Advanced Industrial Science and technology (AIST) http://unit.aist.go.jp/lca-center/
* The 2005 World Exposition, Aichi - Japan Pavilion on the Web, "Shape Up CO2" http://www.nippon-kan.jp/co2/
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