Say one meter of a trunk produces for 500 paper sheets at Rp. 37,000 of sale price and the total production cost, say Rp. 20/sheet or Rp 10,000/500 sheets). Simply, the paper production has met an eco-efficient concept but it heavily depends on the application of technology.
To illustrate the eco-efficiency practice of such paper production, the following figure may helps. (lesson learned from reading of TOYOTA’S ECO-EFFICIENCY PRACTICE, UNESCAP, 2009)
Based on the picture, an eco-efficiency practice will be made if the production cost and resources use/input is lower than the benefit for the end user. In practice, the eco-efficiency (indicator) is affected by production and consumption under consideration of the following elements:
– Reducing the material requirements for goods and services
– Reducing the energy intensity of goods and services
– Enhancing material recyclability
– Maximizing sustainable use of renewable resources
– Extending product durability
– Increasing the service intensity of goods and service
(UNESCAP, Eco Efficiency Indicators: Measuring Resources-Use and the Impact of Economic Activities on Environment, 2009)
In reference to the above statement, the following conditions apply.
First, if production cost for product (or service) is lower than the benefit given, the concept of eco-efficiency is achieved.
Second, the increasing consumption will affect the production (resources use). If the consumption increases and the resources use (production cost) is similar or lower, the concept of eco-efficiency is achieved.
Third, the similar/lower cost of production of one particular product for huge consumption (massive production) meets the efficiency in terms of price – a decrease of sale price.