Life-Cycle Costing (LCC) and the Obligation to Repair: Adapting the CE-LCC Model to the Household Appliances and Consumer Electronics Sectors in Light of Directive (EU) 2024/1799
Purpose: This article attempts to adapt the circular economy-adapted life-cycle costing (CE-LCC) model developed by Wouterszoon Jansen et al. (2020) for the construction industry to the context of the household appliances and consumer electronics industry, taking into consideration the requirements of Directive (EU) 2024/1799. Design/Methodology/Approach: This study is conceptual in nature and is based on a two-stage qualitative analysis. It underscores the potential of LCC in supporting the Circular Economy within the household appliances and consumer electronics sectors by integrating economic, social, and environmental dimensions, while taking into account the requirements of Directive (EU) 2024/1799 on common rules promoting the repair of goods, thereby providing researchers and practitioners with insights that can enhance the implementation of robust LCC frameworks. In the first stage, a review of the literature on LCC, its evolution, its links to the CE, and related research strands was conducted; subsequently, the CE-LCC model authored by Wouterszoon Jansen et al. (2020) was thoroughly analysed. Following a review of the reference model, an analysis of regulatory documents was conducted, specifically the text of Directive (EU) 2024/1799 and its associated ecodesign implementing regulations (e.g., for washing machines, dishwashers, refrigerating appliances, and electronic displays), to identify the obligations imposed on manufacturers that generate costs attributable to individual phases of the product life-cycle. This enabled the identification of specific cost categories. In the second stage, the identified cost categories were mapped onto the CE-LCC model proposed by Wouterszoon Jansen et al. (2020) using the conceptual mapping method. Each cost category arising from the Directive was assigned to its corresponding category in the original model (Value-Retention Processes, life-cycle phase costs), or, in the absence of an equivalent, a new category was proposed. Findings: Based on the analysis of the regulatory documents, namely the text of Directive (EU) 2024/1799 and its associated ecodesign implementing regulations, eight cost categories were identified. An attempt was made to map the defined cost categories to their corresponding categories in the original model. The result of the conducted research is the presented extended life cycle costing scheme. The research carried out shows that the Directive's requirements have a significant impact on the cost structure, necessitating the extension of certain cost categories already included in the reference CE-LCC model, albeit with a shift in their nature from voluntary to mandatory, alongside the inclusion of new categories that have no equivalent in the original model and represent a proposal for its conceptual extension. Practical Implications: This study highlights the need for further research in this area to promote broader LCC implementation among companies transitioning to circular economy-oriented business models. Further research should focus on conducting a quantitative study or a case study on a sample of household appliances enterprises once the national provisions enter into force, as well as to expand the proposed framework to explore its applicability in other durable goods industries covered by the Directive, such as consumer electronics or telecommunications equipment. Originality/Value: The present study addresses the compelling need to recognise the role of LCC within the CE in the household appliances sector in light of Directive (EU) 2024/1799, thereby attempting to bridge the existing research gap in this domain