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Life Cycle Assessment (LCA), Bottom-Up model (BU) and Computable General Equilibrium (CGE) model LCA: Focused on one product and traces the environmental load occurred upstream and down stream in production / disposal. Good for calculating a perturbation effect of usage / preference change of the product Usually ignore the substitution effect among production factors, intermediate goods for production. Focused on the material chain cycle of good’s production and disposal. BU: The quantities to be produced /consumed are prescribed. Calculates the effect of improvement of production technology, required amount of product and so on. The reduction efforts of energies / products are not reflect to the prescribed quantities to be produced Life Cycle Assessment (LCA), Bottom-Up model (BU) and Computable General Equilibrium (CGE) model CGE: Focused on the mutual interaction on economic sectors, and calculate the interactive effects among technology improvement, change of consumer preference, economic policies. Focused on the financial /economic chain cycle of good’s production and consumption AIM/Material : Coupling of LCA and CGE strong-ness, the model describes environmental loads from the view point of material chain cycle and financial /economic chain cycle. Energy and Material Chain Cycle produced commodity (goods and bads) pollution management pollution CO2 production sector energy intermediate energy intermediate pollution recycle market environmental capital and labor CO2 capital labor abroad CO2 household energy final demand import export LCA approach produced commodity (goods and bads) pollution management pollution CO2 production sector energy intermediate CO2 energy intermediate capital labor pollution abroad recycle market environmental capital and labor CO2 household Focused on one product import export Bottom up approach produced commodity (goods and bads) pollution management pollution Focused on energy efficiency change mechanism and its effect CO2 energy intermediate CO2 energy intermediate capital labor pollution abroad recycle import export market environmental capital and labor environmental Industry/investment CO2 Household energy service prescribed Focused on household production efficiency change energy final demand AIM/Material produced commodity (goods and bads) pollution management pollution CO2 production sector energy intermediate energy intermediate pollution recycle market environmental capital and labor CO2 capital labor abroad environmental Industry/investment CO2 household import export energy final demand Summary approach LCA characteristics Good for estimating the effect of one product introduction and retreat to/from society, effect of change of alternative production methods. Good for comparing environmental loads of a product with a same survice kind/amount BU Easy to apply regional/national environmental policy, easy to have consistency with economic plans. Easy to calculate the effect of detailed energy technology improvement AIM/Material Good at to estimate social costs and social benefits and mutual interaction of environmental and economic policies, clearly taken account of price change effects