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Life Cycle Management Conference – LCM 2017 Gustavo Larrea - Gallegos Ian Vázquez - Rowe Ramzy Kahhat Hugo Wiener Consequential Life Cycle Assessment of pisco production in the Ica Valley, Peru Luxembourg September 6 th 2017

Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

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Page 1: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Life Cycle Management Conference – LCM 2017 Gustavo Larrea-Gallegos

Ian Vázquez-Rowe

Ramzy Kahhat

Hugo Wiener

Consequential Life Cycle Assessment

of pisco production in the Ica Valley,

Peru

Luxembourg

September 6th 2017

Page 2: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Presentation layout

Pisco production as a case study

Methods and model development

Results

1

2

3

Conclusions and discussion4

Page 3: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Pisco is an alcoholic beverage produced with grapes harvested from

southern coastal Peru

City of Ica

City of Pisco

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Viticulture was identified as a very intensive stage in terms of climate

change in most wineries

Viticulture

Vinification

Distribution

ALCA boundaries

CLCA boundaries

Crop dynamics

Technological dynamics

Factor of scale

Market

dynamics2,99

1,97

kg o

f C

O2eq

per

lite

ro

f p

isco

Contribution of stages in GHG emissions per liter of pisco

Viticulture Vinification

Vázquez-Rowe, I., Cáceres, A. L., Torres-García, J. R., Quispe, I., & Kahhat, R. (2017). Life Cycle Assessment

of the production of pisco in Peru. Journal of Cleaner Production, 142, 4369-4383.

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1,60 1,801,50

2,402,90

3,90

4,90

6,106,50 6,60

6,30 6,30

7,10 7,10

8,60

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

8,00

9,00

10,00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

MIL

LIO

N O

F LI

TER

S

YEAR

PISCO PRODUCTION 2000-2014

It is reasonable to expect an increase in the demand of pisco for the

following years with BAU conditions

BAU: Business as usual

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14.3

16.8

2025 2030

It is reasonable to expect an increase in the demand of pisco for the

following years with BAU conditions

BAU: Business as usual

Page 7: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Increase in demand of

pisco

Increase in demand of

grapes

Replacement Expansion Imports

Profit of grape increases during time and is always

higher than for certain crops

Intensification

Fertilization and water use may

alter grape quality

The objective is to understand the environmental consequences of

the upcoming increase in pisco demand in terms of GWP

Focusing only on

agriculture stage

It is not replaceable due to

its denomination of origin

H 2: A given farmer will always choose

the most profitable crop

H 3: There are certain crops for which

profit remains constant or decreases

through time

H 1: Profit of grape increases during time

and is always higher than for certain

crops

Page 8: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Replacement and expansion scenarios can be explained by proposing

plausible economic conditions

𝑢 = 𝑓(𝑡)

𝑢1 = 𝑔(𝑡)

𝑢2 = ℎ(𝑡)

𝑢3 = 𝑘(𝑡)

pro

fit

time (demand)

Profit behavior given a demand Y

𝑢 − 𝑢1

𝑢 − 𝑢2

𝑢 − 𝑢3

𝑚𝑎𝑥𝑍 = 𝑢 − 𝑢1 𝑋1+ 𝑢 − 𝑢2 𝑋2+ 𝑢 − 𝑢3 𝑋3

𝑚𝑎𝑥𝑍 = 𝑢 𝑋1 + 𝑋2+ 𝑋3 − (𝑢1𝑋1+ 𝑢2𝑋2+ 𝑢3𝑋3)

𝑚𝑎𝑥𝑍 = 𝑢𝑌 − (𝑢1𝑋1+ 𝑢2𝑋2 + 𝑢3𝑋3)

𝑚𝑎𝑥𝑍 = −(𝑢1𝑋1+ 𝑢2𝑋2+ 𝑢3𝑋3)

𝑚𝑖𝑛𝑍 = 𝑢1𝑋1+ 𝑢2𝑋2+ 𝑢3𝑋3

Producer

perspective

Seasonal crops

Domestic sales

Low profit products

Financial

perspective

Total arable land > 3 ha

Arable land for grapes > 3 ha

Access to water sources

Selection criteria for marginal producers

National Agriculture Census 2012 and National

Production Database

Page 9: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

A Stochastic Technology Choice Model was selected to analyze the

interaction among crops in the Ica and Pisco valleys

“n” sub-systems

columns

“n” sub-systemoutput rows

“m-n” replaceable crops

𝐴𝑛 𝑥 𝑛 [ ] 𝑛 𝑥 (𝑚−𝑛)

“k” arearequirement rows

𝐴∗𝑛 𝑥 𝑚

𝐹𝑘 𝑥 𝑚

“k” crop profit

elements𝑃𝑘𝑥1

“k” available land

elements𝐶𝑘𝑥1

“n” demand

elements𝑌𝑛𝑥1

min 𝑍 = 𝑃′𝐹𝑠

s. t. 𝐴𝑠 = 𝑌

𝑠𝑗 ≥ 0𝐹𝑠 ≤ 𝐶

Linear programming model:

Katelhon, A., Bardow, A., & Suh, S. (2016). Stochastic Technology Choice Model for Consequential Life Cycle

Assessment. Environmental Science & Technology, 50(23), 12575-12583.

Reinout, H., & Sangwon, S. (2002). The computational structure of life cycle assessment. The

Netherlands: Kluwer Academic Publishers.

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There is an increase in the net GHG emissions per liter of pisco in

both scenarios due to crop replacement

0

1

2

3

4

5

6

7

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

kg C

O2eq

per

lite

r

rep

lace

d c

rop

2030 demand y = 8240000

6.21

0

1

2

3

4

5

6

7

8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

kg C

O2eq

per

lite

r

rep

lace

dcr

op

2025 demand y = 5660000

Valley of Ica scenario Valleys of Pisco and Ica scenario

6.78

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A profit variability simulation shows that emissions per FU converge

to a value and net emissions do not differ

GHG emissions in 2025

Ica – with or without annual variability:

38.4 Mg CO2eq

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It is possible to satisfy the projected pisco demand in the Region of

Ica, if land and water are used efficiently

It is plausible for farmers to change to more profitable and less water demanding

crops (grapes)

The Valley of Pisco can potentially fulfill current and future pisco grapes

demand and minimize crop replacement

Fallow land is so abundant that a possible agricultural expansion is unlikely to

occur

Page 13: Consequential Life Cycle Assessment of pisco production in ...lcm-conferences.org/wp-content/uploads/2017...Life Cycle Management Conference –LCM 2017 Gustavo Larrea-Gallegos Ian

Acknowledgement and contact information

• Dirección General de Investigación (DGI), from the PUCP, for funding this project

• Juan Pablo Bentín, from Valle y Pampa Agroindustrial Company, for the consulting

Gustavo Larrea-Gallegos :

Ian Vázquez-Rowe :

Ramzy Kahhat :

Hugo Wiener :

[email protected]

[email protected]

[email protected]

[email protected]