Chapter 07 · Materials & footprintsLife Cycle Assessment & Product Footprinting
Economic allocation
Definition
Economic allocation is allocation based on the relative economic value of co-products or outputs.
References
This reference provides supporting context for how “Economic allocation” is defined and used.
Overview
What it means in practice
Economic allocation should be read as an assessment-method term. Its meaning depends on the study goal, system boundary, data quality and comparison being made.
In practice, users should state the boundary, material route, measurement method and evidence. That keeps economic allocation clear enough to support review without turning it into a broad claim.
Why it matters
Economic allocation matters because LCA language shapes what is counted, compared and communicated. Clear definitions help readers see whether a result is methodological, measured or assumed.
Common misconception
A common error is to treat Economic allocation as neutral or automatic. The stronger approach is to explain the modelling choice and how it affects interpretation.
Review questions
What boundary or material route is being described? What evidence supports the term? What condition, timeframe or modelling choice should be stated before a reader relies on it?
How it is used
The term appears in product design, procurement, footprinting, material selection, production and end-of-life decisions, where designers, manufacturers, procurement teams, life-cycle practitioners and waste managers use it to classify, assess or communicate allocation based on the relative economic value of co-products or outputs.
Its correct use depends on the product system, life-cycle stages, functional unit, geography, timeframe and measurement method.