The Impact factors (multipliers) in TCA:
- Issues 1 and 2 (Climate change and Water scarcity and pollution) are dealt with in E-LCA: the multipliers for the TCA system are given at the webpages concept of eco-costs (Table 2) and eco-costs of resource scarcity . E-LCA deals as well with nuclear power and other energy carriers, the plastic soup, tropical hard wood, metals scarcity, and all kinds of toxic air pollution like ‘fine dust’ and NOx.
- Issue 3 (Biodiversity) is dealt with in E-LCA under eco-costs of land-use , “The eco-costs of land-use for agricultural products from Europe and the US“. However, the way that land-use is dealt with in the standard LCI databases of the classical E-LCA (like Ecoinvent), is unsatisfactory. This is because the modelling of land-use for agriculture is based on a general classification system and some general assumptions for Europe. For TCA, however, the approach should be more refined: based on local biodiversity maps (in most EU countries available per km2), in combination with the way the farmer cares for the local biodiversity.
- Issue 4 (Soil fertility) is one of the core issues in the Natural Capital philosophy. It is, like Issue 3, unsatisfactory dealt with in E-LCA. The issue in TCA is that the current economic price of land does not reflect the ‘eco-system services’ of land as an important life-support function. The result is overexploitation of land. The eco-costs for Natural Capital are described at the webpage Natural Capital
- Issue 5 (Social labor conditions) is dealt with in S-LCA. The set of s-eco-costs are described at the webpage S-eco-costs
- Issue 6 (Animal wellbeing) is regarded as an important issue that should be included in TCA, the factors for milk, cows (and calves), pigs, and chicken can be found at the webpage Social Capital
- Issue 7 (Consumer health) related to the eco-costs of pesticides in food (so-called ‘internalities’ in economics) is explained at the webpage consumer health
For an overview of the eco-costs system for True Cost Accounting, see Fig. 6.1b
Sukhdev, P. 2012. “How do we value Nature?”. A video of a 52 min lecture on the findings of the TEEB (The Economics of Ecosystems and Biodiversity) project. Highly recommended to get an understanding of the general philosophy and its practical applications.