Is Prolonging the Lifetime of Passive Durable Products a Low-Hanging Fruit of a Circular Economy? A Multiple Case Study

Extending the lifetime of passive products, i.e., products that do not consume materials or energy during the use phase, by implementing product-service systems (PSS) has a potential to reduce the environmental impact while being an attractive and straightforward measure for companies to implement. This research assesses the viability of introducing PSS for passive products, by documenting five real product cases of prolonging the lifetime through repair or refurbishment and by quantifying, through life cycle assessment (LCA) and life cycle costing (LCC), the change in environmental and economic outcome. The environmental impact (measured as global warming potential over the life cycle) was reduced for all cases because extraction and production dominated the impact. This reduction was 45–72% for most cases and mainly influenced by the number of reuses and the relative environmental burden of the components whose lifetime was prolonged. The costs for the company (measured as LCC from the manufacturer’s perspective) decreased too by 8–37%. The main reason that costs reduced less than the environmental impact is that some costs have no equivalent in LCA, e.g., administration and labor costs for services. The decreases in both LCA and LCC results, as well as the willingness of the companies to implement the changes, demonstrate that this measure can be financially attractive for companies to implement and effectively contribute to a circular economy.

[1]  Tomas Ekvall,et al.  Open-loop recycling: Criteria for allocation procedures , 1997 .

[2]  G. Rebitzer,et al.  Integrating Life Cycle Costing and Life Cycle Assessment for Managing Costs and Environmental Impacts in Supply Chains , 2002 .

[3]  E. Heiskanen,et al.  Can Services Lead to Radical Eco-Efficiency Improvements? -A Review of the Debate and Evidence , 2003 .

[4]  A. Tukker Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet , 2004 .

[5]  Pernilla Gluch,et al.  The life cycle costing (LCC) approach: a conceptual discussion of its usefulness for environmental decision-making , 2004 .

[6]  O. Mont,et al.  A new business model for baby prams based on easing and product remanufacturing , 2006 .

[7]  Gregory A. Keoleian,et al.  Optimal household refrigerator replacement policy for life cycle energy, greenhouse gas emissions, and cost , 2006 .

[8]  Kathleen M. Eisenhardt,et al.  Theory Building From Cases: Opportunities And Challenges , 2007 .

[9]  Andreas Ciroth,et al.  ICT for environment in life cycle applications openLCA — A new open source software for life cycle assessment , 2007 .

[10]  Julian M. Allwood,et al.  Reducing climate change gas emissions by cutting out stages in the life cycle of office paper , 2007 .

[11]  Tomohiko Sakao,et al.  Service Engineering: a novel engineering discipline for producers to increase value combining service and product , 2007 .

[12]  Tomohiko Sakao,et al.  Quality engineering for early stage of environmentally conscious design , 2008 .

[13]  David Hunkeler,et al.  Environmental Life Cycle Costing , 2008 .

[14]  H. Meier,et al.  Industrial Product-Service Systems—IPS2 , 2010 .

[15]  Veronica Martinez,et al.  Challenges in transforming manufacturing organisations into product‐service providers , 2010 .

[16]  Stephen C. Graves,et al.  Remanufacturing and energy savings. , 2011, Environmental science & technology.

[17]  T. Gutowski,et al.  Material efficiency: A white paper , 2011 .

[18]  Matthias Boehm,et al.  Looking beyond the rim of one's teacup: a multidisciplinary literature review of Product-Service Systems in Information Systems, Business Management, and Engineering & Design , 2013 .

[19]  Steven Van Passel,et al.  Bridging the gap between LCA, LCC and CBA as sustainability assessment tools , 2014 .

[20]  Tomohiko Sakao,et al.  Environmental and economic benefits of Integrated Product Service Offerings quantified with real business cases , 2014 .

[21]  Feng Wang,et al.  Products that go round: exploring product life extension through design , 2014 .

[22]  Fabrice Mathieux,et al.  Environmental assessment of the durability of energy-using products: method and application , 2014 .

[23]  Yuchun Xu,et al.  Integrating through-life engineering service knowledge with product design and manufacture , 2015, Int. J. Comput. Integr. Manuf..

[24]  Gustav A Sandin,et al.  Environmental assessment of Swedish fashion consumption. Five garments – sustainable futures. , 2015 .

[25]  Serenella Sala,et al.  Beyond the throwaway society: A life cycle‐based assessment of the environmental benefit of reuse , 2015, Integrated environmental assessment and management.

[26]  Arnold Tukker,et al.  Product services for a resource-efficient and circular economy - A review , 2015 .

[27]  A. Rashid,et al.  Towards circular economy implementation: a comprehensive review in context of manufacturing industry , 2016 .

[28]  R. Conaway,et al.  Responsible Business: The Textbook for Management Learning, Competence and Innovation , 2016 .

[29]  Mateusz Lewandowski,et al.  Designing the Business Models for Circular Economy—Towards the Conceptual Framework , 2016 .

[30]  N. Bocken,et al.  Product design and business model strategies for a circular economy , 2016 .

[31]  Stephanie Carlisle,et al.  The influence of durability and recycling on life cycle impacts of window frame assemblies , 2016, The International Journal of Life Cycle Assessment.

[32]  F. Figge,et al.  Resource duration as a managerial indicator for Circular Economy performance , 2016 .

[33]  Fabrice Mathieux,et al.  Environmental and economic assessment of durability of energy-using products: Method and application to a case-study vacuum cleaner , 2016 .

[34]  Mauro Cordella,et al.  Analysis of key environmental areas in the design and labelling of furniture products: Application of a screening approach based on a literature review of LCA studies , 2016 .

[35]  A. Flamos,et al.  Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers , 2016 .

[36]  A. Tillman,et al.  Life cycle impacts of ethanol production from spruce wood chips under high-gravity conditions , 2016, Biotechnology for Biofuels.

[37]  M. Sahakian,et al.  Coming Full Circle: Why Social and Institutional Dimensions Matter for the Circular Economy , 2017 .

[38]  Conor J. Walsh,et al.  The role of material efficiency to reduce CO2 emissions during ship manufacture: A life cycle approach , 2017 .

[39]  M. Hekkert,et al.  Circular Economy: Measuring Innovation in the Product Chain , 2017 .

[40]  Daniel R. Cooper,et al.  The Environmental Impacts of Reuse: A Review , 2017 .

[41]  R. Geyer,et al.  Circular Economy Rebound , 2017 .

[42]  Fabio Iraldo,et al.  Is product durability better for environment and for economic efficiency? A comparative assessment applying LCA and LCC to two energy-intensive products , 2017 .

[43]  O. Mont,et al.  Business model innovation for a Circular Economy: Drivers and barriers for the Swedish industry – the voice of REES companies , 2017 .

[44]  Sandra Roos,et al.  USEtox characterisation factors for textile chemicals based on a transparent data source selection strategy , 2018, The International Journal of Life Cycle Assessment.

[45]  Julia L.K. Nußholz,et al.  Circular Business Models : Defining a Concept and Framing an Emerging Research Field , 2017 .

[46]  S.C.L. Koh,et al.  A hybridised framework combining integrated methods for environmental Life Cycle Assessment and Life Cycle Costing , 2017 .

[47]  Callie W. Babbitt,et al.  Closing the loop on circular economy research: From theory to practice and back again , 2018, Resources, Conservation and Recycling.

[48]  M. Hekkert,et al.  Barriers to the Circular Economy: Evidence From the European Union (EU) , 2018, Ecological Economics.

[49]  Tomohiko Sakao,et al.  Designing and providing integrated product-service systems – challenges, opportunities and solutions resulting from prescriptive approaches in two industrial companies , 2018, Int. J. Prod. Res..

[50]  B. Frostell,et al.  The Socio-Economic Embeddedness of the Circular Economy: An Integrative Framework , 2018, Sustainability.

[51]  Michael G. Thurston,et al.  Adaptive remanufacturing for multiple lifecycles: A case study in office furniture , 2017, Resources, Conservation and Recycling.

[52]  T. Baines,et al.  Measuring servitization progress and outcome: the case of ‘advanced services’ , 2018 .

[53]  T. Thiringer,et al.  Life cycle assessment of permanent magnet electric traction motors , 2019, Transportation Research Part D: Transport and Environment.

[54]  A. Tillman,et al.  Resource efficiency of consumables – Life cycle assessment of incontinence products , 2019, Resources, Conservation and Recycling.

[55]  T. McAloone,et al.  Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption? , 2019 .

[56]  A. Tillman,et al.  What circular economy measures fit what kind of product? , 2020 .