Marginal production refers to the production activities that respond to changes in market demand by adjusting their production capacity. This concept is synonymous with and defined by the marginal supplier (long-term), which is the supplier or producer that will change production capacity in response to a change in demand for a product, whether that demand increases or decreases.
In consequential Life Cycle Assessment, identifying marginal production is important for modelling the actual environmental consequences of decisions. When demand for a product changes, not all suppliers respond equally. Some producers operate at fixed capacity due to technical, economic, or regulatory constraints, whilst others can flexibly adjust their output. The marginal suppliers are those flexible producers whose output will actually change in response to the demand shift being studied.
Understanding marginal production matters because it determines which environmental impacts should be attributed to a decision in consequential LCA. Rather than modelling an average of all current producers (as in attributional approaches), consequential LCA focuses on the specific production technologies and activities that will actually increase or decrease as a result of the change being assessed. This distinction ensures that LCA results reflect the real-world consequences of decisions rather than averages.
As Chief Operating Officer, Iris leads our organisational development and oversees day-to-day operations. Before joining 2-0, she worked in the biotechnology sector. As an LCA consultant, Iris has devoted her expertise primarily to the domains of sustainable agriculture and food production. She is dedicated to teaching LCA and is responsible for our educational efforts. Iris holds an M.Sc. in Biology – Biotechnology from the University of Copenhagen.
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Glossary terms are clearer once you have seen them applied. Our guide to what LCA is and how it works walks through the complete methodology: goal and scope, inventory modelling, impact assessment, and interpretation.
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