Economic Value Added

Economic Value Added (EVA) is a technique of accounting that is aimed at providing the market, stakeholders, and shareholders with a less opaque and more trustworthy view of a company's prudent use of resources and overall economic health. EVA can also be called economic rent or economic profit. Although the application of EVA has been adopted by companies from all business sectors, businesses with an interest in sustainability and green enterprise have adapted it to include considerations that may have both direct and indirect environmental effects. A prominent example is the natural grocery store Whole Foods Market. Given the vast, but not uniform, adoption of EVA across the spectrum of the green sector, debates have raged concerning how value creation or destruction is defined, ...

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