Development of Eco-Accounting System : Proposal of Monetarization method for environmental protection effect by LCA-NETS

Abstract

Life Cycle Assessment (LCA) becomes a more critical tool for ECP (Environmentally Conscious Products) designing. At the same time, Life Cycle Costing (LCC) and Environmental Accounting (Eco-Accounting) are becoming a necessary tool to make decision of WTP (willingness to pay) for avoiding certain environmental impacts. This paper proposes a conversion scheme of the environmental load reduction expressed in physical units due to counter-measures into money units based on the CO_2 emission dealing right price, which is able to be evaluated by the CO_2 equivalent NETS values. Additionally, several criteria for the environmental costs performance are proposed with case studies.