Life-cycle analysis (LCA) is most commonly used to inform the product desig
n process, but here the focus is on institutional design issues - contracts
, rules, and procedures that govern the behavior of individuals working in
large organizations. To illustrate the issues, this study investigates the
procurement, use, and disposal of microcomputers in state government agenci
es in Trenton, New Jersey, USA. It finds evidence of environmentally and ec
onomically suboptimal asset management, much of which can be explained and
mitigated by considering the associated transaction costs. (C) 2001 Elsevie
r Science B.V. All rights reserved.