Integrating life cycle analysis into system dynamics: the case of steel in Europe

Abstract

Background: Steel is an important material in modern economies but responsible, nevertheless, for substantial environmental impacts throughout its supply chain. During the last couple of decades, this industry has addressed its impacts more incisively with the support of modelling and assessment tools. Methodology: This article used the European steel industry as a case study to explore the potential benefits of integrating life cycle analysis (LCA) into system dynamics (SD) under the scopes of circular economy and industrial ecology. The goal was to explore if this integration could not only reproduce results generated separately by LCA and SD, but also to provide additional support for decision- and policy-making on the biophysical aspects of long-term materials sourcing. Unlike previous studies focused on methodological exchanges between the two, the entire LCA methodology was brought into the SD modelling environment, following ILCD and ISO guidelines and standards. Results: The results indicated that integrating LCA into SD is feasible and capable of contributing to both in different levels, supporting discussions on raw material scarcity and self-sufficiency, and resource ownership retention. Conclusion: Given continued effort is put into supporting the use of environmental impact indicators, this approach has potential to interest policy-makers and industrial decision-makers alike.