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Recycled material from the vehicle may replace a mix of virgin material, recycled material from other sources, and completely different types of material. The type of materials that are replaced depends on political constraints, the price elasticity etc. at the markets for recycled material. This paper presents a methodological approach to allocation in open-loop recycling, which takes the market aspects into account.

This review is based on the view that a life cycle inventory analysis (LCI) should provide information on the consequences of our actions. System expansion is an adequate method when exported functions are affected. Otherwise, subdivision and allocation based on physical, causal relationships are adequate. Other approaches to the allocation problems are adequate only where the effects on the LCI results are small. The ISO procedure should be revised to take into account the type of information that is provided by the different methods.

The choice of system boundaries, allocation methods and data sources in a life cycle inventory analysis (LCI) depends on basic, ethical views. From the viewpoint of teleological situation ethics, an effect-oriented LCI - with system expansions and marginal data - provides relevant information. From the viewpoint of rule ethics, the methodological choices depend on what rules are considered to be good. In an effect-oriented LCI, the starting point for an assessment of the environmental consequences of actions should be the specific action at hand or the foreground system. A radically effect-oriented LCI probably requires the co-operation between economists and engineers.

A full life-cycle assessment (LCA) is beyond the budget and/or time constraints of many potential users. A combination of screening and streamlined LCA is likely to be more cost effective. Screening LCA only can be used to identify key issues. Certain software tools allow for quick LCA and can be used e.g. for product development. LCA methods allow for methodological choices which favour your own product. Consequently, the credibility is low of an LCA comparing your own product to competing products. Credibility can be enhanced, e.g. through transparency and/or peer review.