| Abstract
| - As industry moves toward a world of extended producerresponsibility (EPR) in which ownership of products becomesless common and product leasing and service provisioningbecome more pervasive, it is increasingly important todevelop frameworks for assessing the environmental impactsof the service industry. In this paper, we use streamlinedlife cycle assessment to compare the environmentalimpacts of a residential air conditioning unit with a proposed“conditioned air” service. When the entire life cycle isconsidered, the assessments indicate that the service optionis environmentally preferable. By making the producerultimately responsible for product repair and “take-back,”the service option creates incentives for the producerto design air conditioning units and their packaging forrecovery, remanufacture, and recycling. This in turn minimizesthe need for new raw materials and component parts.EPR also helps to ensure responsible unit maintenance andrepair, which reduces chemical and oil dissipation intothe environment. Public policy actions that provide incentivesfor EPR may therefore prove to be environmentallybeneficial.
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