Eco-costs are one number (indicator) to represent all the environmental damage caused by a product — from raw material extraction to production, transport, and disposal. It's much like how a carbon footprint is a single metric for measuring greenhouse gas emissions.
Eco-costs compared to carbon footprint
While eco-costs are similar to carbon footprints in that they offer a single, easy-to-understand number, they go beyond just carbon emissions. Eco-costs provide a full Life Cycle Assessment (LCA), meaning they account for the most significant pollution issues:
In short, eco-costs allow businesses to look beyond just carbon and see the full scope of environmental harm, making it easier to compare the true impact of different products.
What Are The "Costs" in Eco-Costs?
Eco-costs represent the hidden environmental costs associated with a product or its packaging. It's not about cleaning up damage after it’s done or compensation however; they are prevention costs — the money needed to stop environmental harm before it happens.
For example, if producing a plastic bottle causes pollution, eco-costs tell you how much investment would be required in cleaner technologies to avoid that pollution.
Think of investments in renewable energy, like solar panels or wind farms, to power the production process instead of relying on fossil fuels. It could also mean upgrading to energy-efficient machinery in factories that use less electricity or produce fewer emissions. Another example would be investing in water recycling systems to reduce water usage and pollution in the manufacturing process.
Eco-Costs enable true-costs
True costs cover the complete picture of expenses associated with a product or service throughout its entire life cycle. This goes beyond the initial price you see on the shelf. Here's a breakdown of what contributes to true costs:
Economic costs (the sales price)
External ecological costs (eco costs)
True costs are available in comparisons.
