Making the Invisible Visible: Teaching Students About the Hidden Environmental Costs of Digital Activities

Purpose: This study aims to determine and analyze how TPST 3R Mulyoagung Bersatu discloses waste management and applies environmental cost accounting in the identification, recognition, measurement, presentation and disclosure of environmental costs in the financial statements, and classifies environmental costs into environmental prevention costs, environmental detection costs, internal environmental failure costs and external environmental failure costs. Methodology/approach: This research was conducted at the Integrated Waste Management Site (TPST) 3R Mulyoagung Bersatu, Dau District, Malang Regency. This research is a qualitative research. In this study using primary and secondary data. Primary data was obtained through interviews, documentation and observation in the field. While secondary data is obtained from data or documents of TPST 3R Mulyoagung Bersatu. Findings: The results of this study are that TPST 3R Mulyoagung Bersatu recognizes costs using the cash basic method and environmental costs are recognized as a component of production costs, namely general operational costs and fuel, employee costs and maintenance costs. Environmental costs at TPST 3R Mulyoagung Bersatu are environmental prevention costs; salary costs and costs of cleaning equipment and cleaning materials, environmental detection costs; none, environmental internal failure costs; vehicle and machinery maintenance costs, building and infrastructure maintenance costs, social costs, external failure costs; none. Practical implications: the results of this study have implications for the development of environmental cost accounting practices in waste management. Originality/value: the research results show that the environmental costs accounting is very relevant and important to waste management because it can evaluate and reduce the environmental impact of the waste management process

This study aimed to investigate the impact of accounting measurement of environmental performance cost elements on the quality of financial reporting information for industrial companies listed on the Amman Stock Exchange (ASE). The study population comprised all 53 companies listed on the ASE at the end of 2022. A questionnaire was used to collect primary data related to measuring the elements of the independent variable (ongoing environmental costs — OEC, capital environmental costs — CEC, and previous environmental costs — PEC) and an applied approach to measure the dependent variable, represented by the quality of financial reporting information. Multiple and simple regression tests were used to assess the relationship between the study variables. The results showed that the accounting measurement of current environmental performance costs had the most significant impact on achieving the quality of financial reporting information, followed by the capital environmental performance costs variable, and lastly, the previous environmental performance costs variable. These findings suggest a positive relationship between the dimensions of accounting measurement of environmental performance costs and the quality of financial reporting information, indicating that as the use of accounting measurement of environmental performance costs increases, the quality of financial reporting information for the studied companies also improves.

Environmental cost is also known as the cost of environmental quality. The treatment cost of environmental quality is equal to the cost of environmental quality, so that the cost of environmental quality can be grouped into : environmental prevention costs, environmental detection costs, environmental internal failure costs, and environmental external failure costs. The purpose of this study is to investigate and analyze how firms identify, recognize, measure, assess and present and disclose the environmental cost in the financial statements. This research was conducted at the Hidayatullah Islamic Hospital of Yogyakarta who has had WWTP by using biological method, that is activated sludge. This study is a qualitative research. This study uses primary data and secondary data. Primary data were collected by interview. The results of this study are in the hospital recognizes the environmental costs and presented into a single account with the other similiar cost in the primary financial statement. Environmental cost is measured by the cost incurred (Historial Cost) with the monetary units rupiah. Environmental costs are not disclosed in the notes of the financial statements (CALK), but disclosed in a descriptive report, a report UKL-UPL.

This study aims to detail environmental costs based on the relevance and accuracy of the information, and formulate a green accounting reporting model based on the characteristics of the company. Qualitative research uses a constructivism critical approach with PT Semen Tonasa in South Sulawesi as an analysis unit. Data collection is done by interview techniques and other secondary data support. The results showed that the company classifies environmental costs based on its activities and does not specify environmental costs, so the information is hidden and managers have difficulty controlling environmental costs. Environmental related costs are classified into environmental prevention costs, environmental detection costs, internal environmental failure costs, external environmental failure costs, and research and development costs. Presentation of environmental costs and disclosure of environmental activities contribute to maximum environmental performance. The formulation of the green accounting model is the fulfillment of environmental responsibility and the realization of accountability to stakeholders.

This study focuses on the environmental cost accounting and economic benefit optimization of China’s FAW Hongqi New Energy Vehicle manufacturing enterprise under uncertain conditions, within the context of the emission permit system This study calculates the pollution situation throughout the manufacturing and production process of FAW Hongqi new energy vehicles, and constructs a multi-level environmental cost evaluation system for FAW Hongqi new energy vehicle manufacturing projects. Through the interval fuzzy model of FAW Hongqi new energy vehicle manufacturing projects, the maximum economic benefits of the enterprise are simulated. The research results indicate that the pollution emissions of enterprises are mainly concentrated in the three processes of welding, painting, and final assembly. Enterprises use their own exhaust gas and wastewater treatment devices to meet the standards for pollution emissions. At the same time, solid waste generated during the automobile manufacturing process is handed over to third-party companies for treatment. Secondly, based on the accounting results of enterprise pollution source intensity and a multi-layer environmental cost evaluation system, the environmental costs of enterprises are accounted for, and the environmental costs are represented in interval form to reduce uncertainty in the accounting process. According to the accounting results of enterprise environmental costs, the main environmental costs of enterprises are environmental remediation costs caused by normal pollution discharge and purchase costs of environmental protection facilities. Pollutant emission taxes and routine environmental monitoring costs are relatively low. Enterprises can adopt more scientific solutions from the aspects of environmental remediation and environmental protection facilities to reduce environmental costs. After optimization by the fuzzy interval uncertainty optimization model, the economic benefits of the FAW Hongqi new energy vehicle manufacturing project were [101,254.71, 6278.5413] million yuan. Compared with the interval uncertainty optimization model, the lower bound of economic benefits increased by 57.68%, and the upper bound decreased by 12.08%, shortening the results of the economic benefits interval. Clarify the current environmental pollution situation of FAW Hongqi’s new energy vehicle manufacturing enterprise, provide data support for sustainable development of the enterprise, and provide reasonable decision-making space for enterprise decision-makers.

Electricity consumption increases rapidly with the rapid development of China. The environmental damage costs of electricity generation are very important for both policy analysis and the proper management of the environment. A method was developed in this work to estimate gross environmental damage costs according to emission inventory and environmental cost factors, and to extend the costs from provincial to national level with population density. In this paper, sulfur dioxide (SO2), nitrogen oxides (NOx), particulate matter less than 10 μm in diameter (PM10), and carbon dioxide (CO2) from fossil fired power plants over 6000 kW were selected as index pollutants to quantify the environmental costs of damages on human health and global warming. With the new developed method, environmental damage costs, caused by 3 types of fired power plants in 30 provinces and 6 economic sectors during the years 2000 to 2003, were evaluated and analyzed. It can be seen that the calculated total national environmental damage costs of electricity have rapidly increased from 94930.87 × 106 USD in 2000 to about 141041.39 × 106 USD in 2003, with an average annual growth rate of 14.11%. Environmental damage costs of SO2, NOx, PM10, and CO2 are 69475.69 × 106, 30079.29 × 106, 28931.84 × 106, and 12554.57 × 106 USD and account for 49.26%, 21.33%, 20.51%, and 8.90% of total environmental costs in fossil electricity generation, respectively. With regard to regional distribution, external costs caused by fossil electricity generation are mainly concentrated in the more populated and industrialized areas of China, i.e., the Eastern Central and Southeastern areas.

Abstract-Environmental issues caused by highway construction need to be evaluated as its environmental cost to minimize environmental impact in highway construction. The environmental impacts in highway construction include environmental pollution and environmental damage as well as environmental cost is comprised of environmental pollution cost and environmental damage cost. Based on the theory of Environmental Economics and the literatures and experts on highway construction, this paper developed a questionnaire to establish environmental pollution cost indicators of highway construction. Based on empirical results, we identified key factors of environmental cost based on exploratory factor analysis. Further, we factor weights were determined through contribution rates and indicator weights on each factor through confirmatory factor analysis. In the end, we developed an indicator system on environmental costs of highway construction based on Hierarchy Process Analysis and got final weights of each indicator.

Environmental costs at a Canadian paper mill: a case study of Environmental Management Accounting (EMA)

This study examines the impact of environmental accounting costs on the financial performance of listed oil and gas companies in Nigeria. High-risk industries like oil and gas face significant scrutiny with environmental sustainability now a global priority. In Nigeria, oil exploration in the Niger Delta has caused severe environmental damage, affecting the operational performance of oil companies. This research evaluates whether transparent reporting on environmental conservation and pollution remediation costs influences profitability and financial health. Grounded in Resource-Based View, Stakeholder, and Legitimacy Theories, the study explores how environmental costs can function as strategic assets, enhancing corporate reputation and stakeholder trust. Using a quantitative approach, the study analyzed data from ten (10) oil and gas firms listed on the Nigerian Exchange Limited (NGX) that spanned from 2013 to 2022 (10 years), yielding 400 observations. Data from annual reports were subjected to regression analysis, with robustness checks confirming the results' reliability. The findings show a positive relationship between environmental costs and financial performance, suggesting that companies that sign environmental agreements will be more profitable. This supports the view that companies seen as environmentally responsible attract investors and customers, gaining a competitive edge. The study concludes that environmental costs are not merely regulatory requirements but can be strategic tools for long-term financial success. It provides empirical evidence from a developing-country context, addressing a gap in the sector. Practically, the study encourages firms to incorporate environmental practices into their strategies. Socially, it underscores the role of corporate responsibility in promoting sustainable development. Limitations include its focus on a single industry and region; future research could explore cross-industry comparisons and broader geographical contexts.

Environmental costs assessment for improved environmental-economic account for Indonesia

In recent years, sustainable development has become an emerging trend in the logistics industry. Smart manufacturing factories pursue green logistics processes with lower energy consumption and reduced carbon emission. The environmental sustainability of the logistics process is widely acknowledged as an important issue. However, a standardized methodology for assessing the environmental cost of logistics-process-aided smart manufacturing is lacking. This paper presents a concept for determining the inbound logistics environmental cost (ILEC) of a gigafactory. Additionally, a novel structured methodology for ILEC assessment is proposed to uniformly describe the gigafactory’s logistics environmental cost, regarding the “double carbon” goal (peak carbon dioxide emissions and carbon neutrality). First, eight types of basic logistics activities and six logistics phases associated with the gigafactory’s inbound logistics are defined. The mapping relationships between the logistics phases and the basic logistics activities are constructed. Then, the novel concepts of environmental price cost (EPC) and environmental impact cost (EIC) are defined and presented. Finally, the ILEC of the gigafactory, including EPC and EIC, is assessed based on mapping relationships and an environmental cost model. We validate this model using the advanced Geely Automobile factory in China in order to analyze the actual inbound logistics environmental costs and how to assess its environmental price and environmental impact. Results from the data model show the environmental costs throughout the whole process and the detailed composition ratio of EPC and EIC in the inbound logistics. Based on the implementation of the ILEC model, our study helps gigafactories to identify critical logistics nodes through energy consumption and to measure the environmental performance of the inbound logistics process. Furthermore, our study helps gigafactories to develop practical environmental strategies.

Energy consumption and pollutant emissions from buildings have caused serious impacts on the environment. Currently, research on building environmental costs is quite insufficient. Based on life cycle inventory of building materials, fossil fuel and electricity power, a calculating model for environmental costs during different stages is presented. A single-objective optimization model is generated by converting environmental impact into environmental cost, with the same unit with direct cost. Two residential buildings, one located in Beijing and another in Xiamen, China, are taken as the case studies and analyzed to test the proposed model. Moreover, data uncertainty and sensitivity analysis of key parameters, including the discount rate and the unit virtual abatement costs of pollutants, are also conducted. The analysis results show that the environmental cost accounts for about 16% of direct cost. The environmental degradation cost accounts for about 70% of the total environmental cost. According to the probabilistic uncertainty analysis results, the coefficient of variation of material production stage is the largest. The sensitivity analysis results indicate that the unit virtual abatement cost of CO2 has the largest influence on the final environmental cost.

This research aims at developing a model for calculating cost of laundry services performed by small-scale laundry businesses which incorporates environmental impact and costs into the model. The activity-based costing method is used to assign indirect costs to the cost object. This research is a continuation of the previous research conducted by the authors. Since environmental impacts and costs are considered, there will be changes in the resources and activity consumed, compared to the original model. The authors identified several environmental costs, such as eco-detergent and plastic, government fines, loss of customers and environmental costs borne by wider society. In analyzing the environmental costs, EPA classification is used. The suggested model is still in the theoretical phase, as some environmental costs arising from laundry business activities are difficult to measure. Some recommendations to laundry businesses and government are provided.

The health sector is one of the components of development, social welfare and economic growth. The purpose of this study was to develop an economic evaluation model of the environmental and health costs of occupational diseases by hybrid approach. To achieve the study goal, a taxonomy of economic evaluation model of the environmental and health costs of occupational diseases has been developed. The Delphi method was used to identify health and environmental criteria and the analytic network process (ANP) method was used to weigh the sub-criteria. Finally, health and environmental cost were estimated based on the available information. Naft Subspecialty Hospital in Tehran, Iran (NSHT), was selected as the place of case study. In this study, eight and eleven sub-criteria were identified in the health and environmental sector, respectively. The ANP results indicated that the medicine and medical equipment cost criteria with a weight of 0.312 in the Medical sector, and the special and infectious waste cost criteria with a weight of 0.085 in the environmental sector were the most significant cost criteria in NSHT. Furthermore, the parametric model findings indicated that 99.84 and 0.16% of the total costs are associated with health and environmental costs, respectively. The findings indicated that 61.3% of the costs of the health sector were associated with the two sectors of medicine and medical equipment and the cost-of-service personnel, and 91.7% of the costs of the environmental sector are associated with wastewater treatment and the cost of electricity consumption. This study tried to present a quantitative model of the health and environmental costs of NSHT. Implemention of this integrated model can be a practical and effective step in allocating resources and prioritize interventions.

The study examined the implication of environmental cost on performance of oil and gas companies in Nigeria. The objectives of the study are to examine whether environmental cost affects return on capital employed and market value added of oil and gas companies in Nigeria. Data for this study were retrieved from reports of the companies from 2013-2017 financial years and values for the qualitative data such as environmental regulatory cost (ERC) and environmental health and safety cost (EHSC) were measured using dichotomy procedures. Values were assigned from 0-5 based on the level of disclosure using global reporting index (GRI). Having examine the content of the financial report of the companies, the analytical technique used for this study was the panel regression method. The research results indicate that there exists a relationship between environmental cost and profitability of oil and gas companies in Nigeria. The study therefore recommended amongst others that Oil and gas companies should focus reasonable attention to addressing relevant environmental issues and cost involvement disclosed in their financial report for the purpose of profit measurement.