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Total Cost Analysis of Lead-Free Automotive Electrocoating
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English
Abstract
Total cost analysis (TCA) was used to evaluate a pollution prevention project in automotive electrocoating. The objective of TCA was to examine tradeoffs between reduced environmental costs and potentially higher materials costs for a lead-free process. The TCA model considered here is a hybrid of two TCA models, developed separately by P. Bailey and A. White. Results of the analysis show that a lead-free paint price premium of not more than 0.3% over the leaded paint price results in the lead-free project being financially worthwhile. After incorporating liability and less tangible benefits and allowing the savings to be valued at several million dollars over twenty years, the project becomes financially advantageous at the estimated 9% lead-free paint price increase.
Authors
Citation
Wildern, N. and Isaacs, J., "Total Cost Analysis of Lead-Free Automotive Electrocoating," SAE Technical Paper 981165, 1998, https://doi.org/10.4271/981165.Also In
References
- Bailey, P. “Full Cost Accounting for Life Cycle Costs - A Guide for Engineers and Financial Analysts,” Environmental Finance Spring 1991
- White, A. Becker, M. Savage, D. “Environmentally Smart Accounting: Using Total Cost Assessment to Advance Pollution Prevention,” Pollution Prevention Review Summer 1993
- Nallicheri, R. “Automotive Painting: An Economic and Strategic Analysis,” Sloan School of Management, Massachusetts Institute of Technology Cambridge, Massachusetts 1993
- Chen, C. P. “Automotive Painting: Achieving a Technological, Economic and Environmental Balance,” Department of Civil and Environmental Engineering, Technology and Policy Program, Massachusetts Institute of Technology Cambridge, Massachusetts 1995
- Wildern, N. “Total Cost Analysis of Pollution Prevention in Automotive Electrocoating,” Department of Mechanical Engineering, Technology and Policy Program, Massachusetts Institute of Technology Cambridge, Massachusetts 1997