Material flows and economic models: an analytical comparison of SFA, LCA and partial equilibrium models

The growing concern for environmental problems in the current economy has s purred the study of the way materials and substances flow through the econo my, resulting in many different types of analysis. Since all of these have their merits and shortcomings, much of the present theoretical research see ms to be focusing on combining the best aspects of each model type into an integrated model. The aim of this payer is to make a first step in bridging the gap between the various types of analysis of material flows in the eco nomy, by discussing the main differences and similarities of three often em ployed model types: substance flow analysis, life cycle assessment and part ial economic equilibrium analysis. Instead of submitting each model to a le ngthy theoretical discussion, we apply them to a single, hypothetical examp le of a pollution problem. By doing so we are able to evaluate the differen ces and similarities of the methods:and results of the model in a practical way. It appears that the results of the three models are complementary rat her than contradictory. Each of them puts an emphasis on different aspects of 'the real world'. A sequential application of a number of limited models may therefore be an approach that provides more useful information than th e tedious construction and application of an encompassing model that integr ates these models. (C) 2000 Elsevier Science B.V. All rights reserved.