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                                    1.5.4.7 Material Flow Accounting (MFA) and Input-Output
                                            Analysis (IOA)

                                    Material Flow Accounting (MFA) refers to accounting in physical units (usually in
                                    tons); the extraction, production, transformation, consumption, recycling and depo-
                                    sition of materials in a given location (i.e., substances, raw  materials, products,
                                    wastes, emissions into the air, water or soil). Within the range of the present work,
                                    MFA encompasses methods such as substance flow analysis (SFA) and other types
                                    of balance of materials for a given region (Fuster et al., 2002). Examples of flow
                                    assessments are:

                                       •  Eco-toxic substances such as heavy metals that may cause environmental
                                          problems due to their accumulation capacity
                                       •  Nutrients such as nitrogen and phosphates due to their critical influence
                                          over eutrofication
                                       •  Aluminum, the economic use, recycling and reuse of which are to be
                                          improved (Bringezu et al., 1997; Fuster et al., 2002)

                                       As a part of establishing statistical accounts on a national scale, the input–output
                                    analysis (IOA) has been under development since the 1930s. One  of the main
                                    applications of this analysis is to show the interrelationship of all flows of goods
                                    and services within a given economy; it also shows the connection between producers
                                    and consumers and interdependence among industries (Miller and Blair, 1985). Since
                                    1993, different environmental applications have been designed.  Nowadays, this
                                    macroeconomic method is frequently applied to environmental analysis (Proops et
                                    al., 1993).

                                    1.5.5 APPLICATION-DEPENDENT SELECTION OF ANALYTICAL TOOLS

                                    According to Wenzel (1998), the governing dimensions for applications of analytical
                                    tools such as LCA are site specificity, time scale and need for certainty, transparency
                                    and documentation. Possible applications can be positioned in relation to these
                                    governing dimensions. In the case of LCA, Sonnemann et al. (1999) have examined
                                    in which cases LCA is an integrated element of another concept and for which goals
                                    other tools of environmental management should accompany it. They correspond to
                                    the following points:

                                       1. Education and communication.  LCA supplies a potential common
                                          ground or basis for discussion and communication. All groups in the
                                          society need to understand their individual responsibilities for improve-
                                          ments.
                                       2. Product development and improvement. The concept used in the field
                                          of environmentally friendly product (re)design and development is called
                                          design for the environment (DfE). LCA provides the information to sup-
                                          port it.


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