Life cycle assessment (LCA) based thermoeconomic modelling has been applied for the evaluation of energy conversion systems since it provided more comprehensive and applicable assessment criteria. This study proposes an improved thermoeconomic method, named as life cycle integrated thermoeconomic assessment (LCiTA), which combines the LCA based enviroeconomic parameters in the production steps of the system components and fuel with the conventional thermoeconomic method for the energy conversion systems. A micro-cogeneration system is investigated and analyzed with the LCiTA method, the comparative studies show that the unit cost of fuel by using, the LCiTA method is 3.8 times higher than the conventional thermoeconomic model. It is also realized that the enviroeconomic parameters during the operation of the system components do not have significant impacts on the system streams since the exergetic parameters are dominant in the thermoeconomic calculations. Moreover, the improved sustainability index is found roundly 67.2% higher than the previously defined sustainability index, suggesting that the enviroeconomic and thermoeconomic parameters decrease the impact of the exergy destruction in the sustainability index definition. To find the feasible operation conditions for the micro-cogeneration system, different assessment strategies are presented. Furthermore, a case study for Singapore is conducted to see the impact of the forecasted carbon dioxide prices on the thermoeconomic performance of the micro-cogeneration system. (c) 2017 Elsevier Ltd. All rights reserved.