The consequential life cycle inventory modelling principle is also called “change-oriented”, "effect-oriented", "decision-based", “market-based” and (older and incompletely / misleadingly capturing the issue: “marginal” or “prospective”). It aims at identifying the consequences that a decision in the foreground system has for other processes and systems of the economy, both in the analysed system's background system and on other systems. The consequential life cycle model is hence not reflecting the actual (or forecasted) specific or average supply-chain, but a hypothetic generic supply-chain is modelled along market-mechanisms, and potentially including political interactions and consumer behaviour changes. Regarding modelling the main market consequences, components of general (and in some cases partial) equilibrium models are employed. Central in modelling market consequences is a quantitative understanding of the markets and how direct and indirect changes in supply and demand of the analysed good or service act in the markets to cause specific changes in demand and supply of other goods and services. Secondary consequences may counteract the primary consequences (then called 'rebound effects') or further enhance the preceding consequence.

JRC, 2010, European Commission, Joint Research Centre – IES, International Reference Life Cycle Data System (ILCD) Handbook - General guide for Life Cycle assessment - Detailed guidance. First edition, EUR 24708 EN. Luxembourg. Publications Office of the European Union, 2010.

Source category: EC Technical Documents