Analysis of complementary methodologies to assess the environmental impact of Luxembourg's net consumption

Abstract The choice of accounting methods and indicators to support national stakeholders and public authorities in environmental decision-making policies is made difficult by the extensive number of available tools and the general divergence of scientific opinions on their effectiveness. In this paper, a set of life cycle-based approaches are compared and a methodological framework is recommended to support policy makers in the evaluation and choice of environmental impact mitigation strategies. The net consumption (=production + imports − exports) of Luxembourg, taken as a case study, is inventoried based on different Environmentally Extended Input–Output (EE-IO) scenarios and further assessed using the Ecological Footprint (EF), ReCiPe and Solar Energy Demand (SED). All the compartments of resources extraction and pollutant emissions and the main environmental impacts generated by the Luxembourgish economic trade-offs are evaluated. Results highlight the need for higher consistency in the use of EE-IO tables mainly because of the uncertainty affecting the environmental extensions (EEs). This aspect plays a major role when applying different assessment methods and relevant changes in terms of overall environmental impact are observed according to different sets of resources and emissions inventoried. These changes, however, do not substantially influence the results at the level of single economic sector's contribution. Regardless the consumption scenario and the indicator considered, the financial and banking sectors contribute to more than 40% to the total EF, SED and ReCiPe results. Strengths and weaknesses of each indicator are discussed, and direct and indirect contribution analyses by sector allowed outlining strategies for impact mitigation.

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