Environmental Life Cycle Costing (E-LCC)

The E-LCC method (Environmental Life Cycle Costing) is a technique of managing all costs for a product / service in a sustainability framework, taking into account the main categories of environmental impact (eg. global warming, eutrophication, acidification, depletion of resources) (Gerald Rebitzer and Shinichiro Nakamura, 2008 quoted from Seuring, 2003).

Benefits of using the E-LCC (Environmental Life Cycle Costing) method (Gerald   Rebitzer and Shinichiro Nakamura, 2008):

• Comparing costs between different stages of the life cycle
• Identification of direct and indirect unforeseen costs
• Reporting the improvements made by a company in terms of a product / service
• Estimate improvements in changes to products, production processes, or services provided
• Identification of win-win cases and agreements based on mutual agreements within the LCA (Life Cycle Assessment)

Life cycle cost (LCC) is a technique for assessing all costs that will be incurred throughout the life cycle of a product or service, which may include (https://ec.europa.eu/environment/gpp /lcc.htm):

• Purchase price and associated costs (delivery, installation, insurance, etc.)
• Operating costs, energy consumption, fuel, maintenance
• End-of-life costs (disposal / recycling) or residual value (eg revenue from resale of the product)