Assessing the engineering design costs to meet environmental regulations: the case of packaging

Abstract

This novel contributions reveal how environmental regulations drive engineering design costs, focusing on the emblematic case of packaging. Using a regulatory database and simulation-based modeling, we evaluate functional expansion as a key driver of cost escalation, identifying its volume effect (rising costs from added environmental functions) and scope effect (increased interdependencies among ecosystem actors). The findings offer a simulated cost envelope to support engineering design teams in their forecasts, but also underscore the hurdles of sustainably managing these regulatory-driven costs in the packaging product system, by benchmarking cost trajectories against sustainability metrics, such as carbon pricing.