An increased in profit can be achieved when environmental quality is included in a firm’s management objectives.
EFFICIENCY : ATTEMPS IN INCREASING PROFIT
Full environmental costs = (internal + external costs)
External costs = the costs of external environmental and health damage
(e.g., the costs of uncompensated health effects and environmental impacts –Stratospheric ozone depletion; biodiversity loss; climate change)
• an unforeseen liability or remediation cost;
• employee health and satisfaction;
• customer perception and relationship costs; and
• investment financing costs or the ability to raise capital.
2. A moral commitment to environmental stewardship; and
3. The desire to promote good relations with the residents of local communities.
• Activity-Based Costing/activity-based management
• Total Quality Management/total quality environmental management
• Business Process Re-engineering/cost reduction
• Design for Environment/life-cycle design and assessment
• Life-Cycle Assessment/life-cycle costing
• Total Cost Assessment
• Full Cost Assessment
1. Barbera, A. J. and V. D. McConnell (1990). The impact of environmental regulation on industry
productivity: Direct and indirect effects. Journal of Environmental Economics and Management 18, 50–65.
2. Environmental Cost (1999), FACO Alternatives for the Joint Strike Fighter. pg. 84
3. Gale, Robert J.P. and Peter K. Stokoe (2001) ‘Environmental Cost Accounting and Business
Strategy’, in Chris Madu (Ed.) Handbook of Environmentally Conscious Manufacturing
(Kluwer Academic Publishers).
4. John C. V. Pezzey and Michael A. Toman (2002) ‘The Economics Sustainability : A Review of
Journal Articles” Discussion Paper 02-03. Resources for the Future, Washington DC
5. Lecture’s handouts, Chapter Four : Resource Management
6. Morgenstern, R, William A. P and Jhih-Shyang Shih. (1998) “The Cost of Environmental Protection”,
Resources for The Future, Washington DC
7. Sustainable Economic Growth (2008) , can be accessed at http://www.economichelp.org
8. Thomas Schindlmayr (2006), Reconsidering Intergeneration Concerns, Int J Soc Welfare pp : 181–184
9. Wang, S. (2006), Environmental Quality, and Economic Well-being : Are They Related ?