Environmental Cost: Different Concepts and Measurement Models
Minghui Li
Abstract
Minghui Li
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.
Key concepts: Cost accounting, Macro, Historical cost, Cost estimate, Relevant cost, Environmental accounting, Environmental full-cost accounting, Economic cost