Transcription of Chapter 6. Environmental Accounting
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Chapter 6. Environmental Accounting
Rebuilding the American Economy 2009 Bainbridge 48 Chapter 6. Environmental Accounting The increasing importance of considering Environmental aspects within a company s decisions demands a broader scope in management Accounting . Eco-management Accounting should enable management to integrate Environmental issues into the decision-making process. Thomas Orbach and Chrisa Liedtke (1998) Estimating and Accounting for the costs of Environmental impacts is a rapidly evolving area of management, Accounting , and finance. However, much greater input from ecological and Environmental scientists and considerable research are both needed to improve the quality of these cost estimates. Although in its infancy, Environmental Accounting is increasingly recognized as essential, and as more resources are devoted to this aspect of Accounting , it will become a more powerful and effective tool to improve policy development, management, and consumer decision-making. The Internet has made the search for needed information on health, social, and Environmental costs much easier; and NGOs, businesses, trade groups, and various agencies and departments are using these new resources for better Environmental Accounting .
more easily. For example, the ratio of native to invasive alien species and trends in population dynamics are often very informative. Keystone species (which play a critical role in the ecosystem) may be easy to track and can often provide useful information. Indicator species (which are particularly sensitive to change and reflect the overall
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