Estimating Environmental Costs

Added demands on natural resources and proposed environmental regulations could potentially have a significant impact on the production and operational costs of information technology (IT). In this paper, we utilize an Economic Input-Output Life-Cycle Assessment (EIO-LCA) framework to model projected changes in the cost structure of a portfolio of IT products due to increased electricity prices and a carbon tax on producers and consumers. Our analysis suggests that the Total Cost of Ownership (TCO) for IT in a large enterprise could increase by up to 13% depending on the incidence of taxation. We conclude by discussing how this changing IT cost environment will further incentivize the design of energy-and carbon-efficient IT products.