The environmental impact of a product may change according to who adopts it, where it is adopted, and how it is used. Market forces are an inherent part of consequential LCA and the practice of coupling economic models with life cycle inventory data has increased in popularity. Nevertheless, the actual relationship between the price of a commodity and potential changes to its life cycle inventory has rarely been discussed explicitly. The adoption price effect refers to a change in a product’s environmental impact associated with a change in price, calculated on a functional unit basis. The price of a product influences the type and quantity of incumbent product(s) it displaces. This study provides insights on when the adoption price of a product is likely to influence its life cycle inventory and also identifies conditions where adoption price is expected to have negligible effects on inventory results.
A switchgrass bioenergy case is used to demonstrate the adoption price effect on life cycle inventory results when introducing a new product (i.e., switchgrass) into a system with multiple incumbents (i.e., crops, hay, pasture). This study estimates the adoption price effect on nutrient emissions by coupling biogeochemical models with a simplified economic breakeven model that estimates potential switchgrass adoption.
Results and discussion
In this case study, high switchgrass prices correspond to nitrate emission reductions that are three times greater than low switchgrass prices (0.67 kg N reduced/Mg switchgrass vs 0.21 kg N reduced/Mg switchgrass). The large adoption price effect found within the Southeastern USA is due to the highly heterogeneous landscape in the region. There is no single dominant land use, each incumbent product has a different environmental baseline, and each is displaced at a different switchgrass price range. Meanwhile, the adoption price effect is expected to be negligible in mostly homogenous landscapes, such as the more commonly studied Corn Belt, which has a single dominant incumbent in the form of corn-soy production. In addition to the specific case study, this analysis discusses general adoption conditions likely to lead to adoption price effects when conducting consequential LCA.