A simulation study of merging a lifecycle impact assessment (LCIA) with an integrated assessment model (IAM)-an optimal economic growth via internalizing external costs by environmental impacts-

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We argued a new adaptation methodology with optimal economic growth via internalizing environmental external costs according to varieties of environmental impacts by merging bottomup LCIA with IAM. An endpoint type LCIA methodology based on Japanese environmental conditions, LIME (Lifecycle Impact assessment Method based on Endpoint modeling), provided evaluated marginal willingness-to-pay (MWTP) to protect environmental impacts of present-day in Japan by use of a conjoint analysis. We interpreted the LIME MWTP expressed environmental externalities, and reassessed MWTP parameters of the future and other world regions. The environmental external costs of global warming, acidification, land-use & land-use change (LU&LUC) are coupled with an integrated assessment framework of economic utility maximization model GRAPE (Global Relationship Assessment to Protect Environment). Simulation results indicated that approximately a half of external cost is from greenhouse gas emissions and the rest from LU&LUC. This fact implies that LU&LUC is of important comparable to global warming; and that internalizing external cost leads to forestry conservation and the departure from fossil fuel. his study is the world first trial of integrated assessment by merging LCIA of bottom-up approach with IAM.
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