Traditional life-cycle inventories often suffer from a significant truncation error, potentially as high as 50%, due to omitting resource needs from upstream stages. To solve this issue this paper integrates input-output analysis into the assessment framework, resulting in a hybrid life-cycle inventory method. Conventional process‐analysis‐type techniques for compiling life‐cycle inventories suffer from a truncation error, which is caused by the omission of resource requirements or pollutant releases of higher‐order upstream stages of the production process. Using Monte-Carlo simulations, it was demonstrated that using an input-output methodology assessment framework reduced uncertainties compared to truncation errors, which are found in process analyses. These data and simulations show the benefit of using a hybrid life-cycle inventory method. This research has implications for environmental management and policy, especially concerning life-cycle assessments.
Published in the Journal of Industrial Ecology, this paper is directly relevant to the journal's focus on industrial ecology. The research provides a comparative analysis of life-cycle inventory methods, discussing the impact of human activities on the environment. It addresses sustainability issues within an industrial context.