DEALA — A novel economic life cycle impact assessment method for differentiated economic assessments in the context of life cycle sustainability assessments

Legislation and market competition make it necessary to assess systems regarding their environmental, social, and economic impacts. The life cycle sustainability assessment (LCSA) approach can be used for this purpose. However, the literature shows limitations of this approach. This article focuses on the often encountered inconsistency and reduced transparency within the economic dimension due to the lack of harmonized impact assessment methods. Therefore, we propose a novel economic life cycle impact assessment (eLCIA) method called DEALA (Differentiated Economic Assessment in a Life Cycle‐Oriented Analysis), which allows economic assessments at three levels of aggregation. Overall, DEALA is based on economic principles and provides a structured approach to conduct environmental life cycle costing studies, resulting in greater transparency, comparability, and flexibility, as illustrated by an initial comparison with an existing case study. DEALA also facilitates a differentiated and detailed analysis of the results so that hotspots and improvement potentials can be identified, making DEALA a suitable economic LCIA method that should be considered in future studies. These benefits are confirmed through a LCSA of a battery supply chain. The assessment provides detailed and specific insights that can be used to design more sustainable battery supply chains.