Circular Economy Life Cycle Costing Model (CE-LCC) Demonstrates Long-Term Economic Viability of Sustainable Building Components

Why It Matters

This research provides a framework for designers and engineers to quantify the economic benefits of circular design strategies. By considering multiple use cycles, end-of-life processes, and remanufacturing scenarios, the CE-LCC model helps justify investments in sustainable materials and product designs, driving adoption within the building industry.

Key Finding

A new economic model shows that building components designed for flexibility and multiple lifecycles, incorporating remanufacturing and recycling, are more cost-effective in the long run than standard 'business-as-usual' options.

Key Findings

• The CE-LCC model can effectively assess the economic viability of circular building components.
• The most flexible variant of the Circular Kitchen demonstrated the lowest Life Cycle Cost (LCC) outcome, even when considering various remanufacturing and recycling scenarios.
• The model facilitates alignment of functional units and system boundaries with Life Cycle Assessment (LCA).

Research Evidence

Aim: To develop and test an economic assessment model that supports the development of circular building products by considering multiple use cycles and end-of-life processes.

Method: Development and application of a Circular Economy Life Cycle Costing (CE-LCC) model.

Procedure: The CE-LCC model was developed by adapting existing Life Cycle Costing techniques to incorporate circular economy principles. It was then applied to a case study of a 'Circular Kitchen' (CIK), comparing three variants against a 'business-as-usual' case to evaluate long-term economic competitiveness.

Context: Building industry, sustainable construction, circular economy product development.

Design Principle

Design for Disassembly and Reuse: Building components should be designed to be easily disassembled, repaired, remanufactured, or recycled to maximize their lifespan and minimize waste, leading to long-term economic benefits.

How to Apply

When designing building components, use or adapt the CE-LCC model to compare the long-term economic performance of circular design strategies against conventional approaches, considering various end-of-life scenarios.

Limitations

The model could benefit from further research and broader application across different building component types and contexts.

Student Guide (IB Design Technology)

Simple Explanation: A special way to calculate costs over a product's whole life, including when it's reused or recycled, shows that eco-friendly building parts can actually save money over time.

Why This Matters: Understanding the long-term economic benefits of sustainable design is crucial for convincing clients and stakeholders to invest in your projects and for making environmentally responsible choices.

Critical Thinking: To what extent can the CE-LCC model be generalized beyond the building industry, and what adaptations would be necessary for other product sectors?

IA-Ready Paragraph: The development of a Circular Economy Life Cycle Costing (CE-LCC) model by Jansen et al. (2020) provides a robust framework for assessing the long-term economic viability of sustainable building components. Their research highlights that designs incorporating principles of multiple use cycles and end-of-life processing, such as remanufacturing and recycling, can yield lower overall life cycle costs compared to conventional 'business-as-usual' approaches, thereby supporting the economic justification for circular design strategies in the built environment.

Project Tips

• When evaluating design choices, consider the entire lifecycle cost, not just the initial purchase price.
• Explore how different end-of-life scenarios (e.g., repair, remanufacture, recycle) impact the overall economic viability of your design.

How to Use in IA

• Reference this study when justifying the economic benefits of your chosen sustainable design solutions, particularly if they involve circular economy principles like reusability or remanufacturing.

Examiner Tips

• Demonstrate an understanding of how economic factors can drive or hinder the adoption of sustainable design practices.
• Show how lifecycle costing can be used to support design decisions.

Independent Variable: Design variants (e.g., flexibility, multiple use cycles, end-of-life processing).

Dependent Variable: Life Cycle Cost (LCC) outcome.

Controlled Variables: Functional unit, system boundaries, 'business-as-usual' case for comparison.

Strengths

• Adaptation of existing LCC techniques to specific CE requirements.
• Application to a real-world case study (Circular Kitchen).

Critical Questions

• How sensitive is the CE-LCC model's outcome to variations in remanufacturing and recycling costs?
• What are the key stakeholder benefits beyond economic savings that a CE-LCC model can highlight?

Extended Essay Application

• Investigate the economic feasibility of a circular design for a product you are developing by creating a simplified lifecycle cost analysis that considers reuse, repair, and recycling scenarios.

Source

A circular economy life cycle costing model (CE-LCC) for building components · Resources Conservation and Recycling · 2020 · 10.1016/j.resconrec.2020.104857