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The Benefits of Improved Environmental Accounting: An Economic Framework to Identify Priorities
James W. Boyd
RFF Discussion Paper 98-49 | September 1998
RESEARCH TOPICS:
Abstract
Improved environmental accounting is increasingly seen by corporate managers and environmental advocates alike as a necessary complement to improved environmental decision-making within the private sector. This paper develops an economic approach to the evaluation of environmental accounting's benefits and derives the value, and determinants, of improved accounting information in several production and capital budgeting contexts. Using concepts from managerial economics, finance, and organizational theory, the analysis identifies the types of environmental accounting improvement that are most likely to yield significant financial and environmental benefits.
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