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Life Cycle Analysis (LCA) considers the key environmental impacts for the entire life cycle of alternative products or processes in order to select the best alternative. An ideal LCA would be an expensive and time consuming process because any product or process typically involves many interacting systems and a considerable amount of data must be analysed for each system. Practical LCA methods approximate the results of an ideal analysis by setting limited analysis boundaries and by accepting some uncertainty in the data values for the systems considered. However, there is no consensus in the LCA field on the correct method of selecting boundaries or on the treatment of data set uncertainty. This paper demonstrates a new method of selecting system boundaries for LCA studies and presents a brief discussion on applying Monte Carlo Analysis to treat the uncertainty questions in LCA.

Life Cycle Value Assessment (LCVA) is a decision making tool which considers environmental, economic and/or social aspects for the entire life cycle of a product or process from “cradle-to-grave”. LCVA can be used for a wide range of public policy and business decisions with the analysis being performed at various levels of rigour. By its nature, LCVA utilizes data sets of varying qualities drawn from a wide range of sources. The uncertainties in the input data obviously lead to uncertainties in the results of the LCVA analysis. To establish confidence in an LCVA's recommendations, it is important to consider these uncertainties and incorporate an assessment of uncertainty into the LCVA process. However, the diverse nature of the data sets being used makes it difficult to rigorously establish data uncertainty levels. In addition, the complexity of most life cycle models makes it difficult to trace uncertainty through the analysis process.

Fuel choices are being made today by consumers, industry and government. One such choice is whether to use reformulated gasoline to replace regular unleaded gasoline. A second choice involves the source of crude oil, with synthetic crude oil from tar sands currently expanding its share of the Canadian supply. Decision makers usually work with the direct economic consequences of their fuel choice. However, they generally lack the knowledge to measure environmental aspects of different fuel systems. This paper uses Life Cycle Value Assessment (LCVA) to demonstrate how the life cycle environmental aspects can be compared for alternative fuel choices. LCVA is an engineering decision making tool which provides a framework for the decision maker to consider the key economic and environmental impacts for the entire life cycle of alternative products or process systems.