3. The EVR for economic allocation in LCA
The EVR can act as a parameter for “economic allocation” in LCA calculations, especially for services (“eco-costs per euro” instead of “eco-costs per kg”).
The issue is that services are characterised by shared use of facilities (for transport, offices, equipment etc.) which is complicating the LCA, since materials and emissions are shared as well. Materials and emissions must then be allocated to a specific service in line with the economic importance of that specific service. It called “economic allocation” in LCA. This is an issue for LCA specialists. For a further explanation and details on this rather difficult subject, see tab LCA, allocation.
Although this application of the EVR is fully in line with the ISO for LCA, it has to be applied with care (see webpage FAQs question 1.3).