2005Unpublished venueRequires access

Environmental Cost: Different Concepts and Measurement Models

Minghui Li

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Abstract

This paper discusses the different views on environmental cost and the measurement methods accordingly.Environmental cost can be divided into three categories:micro-financial cost,micro-economic cost,and macro-economic cost.At present,environment accounting system adopts micro-financial cost but neglects external costs of the business.While national accounting system mainly adopts macro-economic cost.Both systems should be improved.

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This paper discusses the different views on environmental cost and the measurement methods accordingly.Environmental cost can be divided into three categories:micro-financial cost,micro-economic cost,and macro-economic cost.At present,environment accounting system adopts micro-financial cost but neglects external costs of the business.While national accounting system mainly adopts macro-economic cost.Both systems should be improved.

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Available abstract

This paper discusses the different views on environmental cost and the measurement methods accordingly.Environmental cost can be divided into three categories:micro-financial cost,micro-economic cost,and macro-economic cost.At present,environment accounting system adopts micro-financial cost but neglects external costs of the business.While national accounting system mainly adopts macro-economic cost.Both systems should be improved.

Key concepts: Cost accounting, Macro, Historical cost, Cost estimate, Relevant cost, Environmental accounting, Environmental full-cost accounting, Economic cost

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