Environmental Accounting

Environmental accounting (also known as green accounting) is a style of accounting that includes the indirect costs and benefits of economic activity—such as environmental effects and health consequences of business decisions and plans. It is increasingly used by green companies interested in sustainability, ecoeffectiveness, and ecoefficiency, along with direct and more obvious market tools in strategic management. Environmental accounting collects, analyzes, assesses, and prepares reports of both environmental and financial data with a view toward reducing environmental effects and costs. This form of accounting is central to many aspects of governmental policy as well. Consequently, environmental accounting has become a key aspect of green business and responsible economic development.

The link between the environment and the economy is an inarguable one. In recent decades, environmental accounting ...