environmental costs in LCC
From a methodological aspect, LCC is well developed with respect
to conventional costs. However, when it comes to costs related to environmental
issues, neither the items, nor their estimation is well developed.
Some of the items of an LCC have to do with increased/decreased sales, others
with goodwill. Both are difficult to estimate, but LCA or LCA-like
investigations may be used for benchmarking and trend analysis.
Future costs to the product system may also be estimated, e.g. with a
distance-to-target type of weighting, like in the DESC model.
LCA may be used to estimate risks, especially together with those LCA impact
assessment methods that model damage. Such an item in the LCC can be dealt with
as an insurance fee or in case the risk is too high, as a way to include
necessary preventive actions.
In today's cost accounting it is often difficult to find environmental
related costs. An LCA helps in identifying many of these costs.