Environmental Accounting

Executive Summary

The rationale for improved environmental accounting aligns the assessment, enumeration, and projection of natural resources with the need for environmental conservation and minimizing environmental degradation. The economic aspect has been observed to be suppressed with the lack of valuation of the respective natural resources in cost benefit analysis. Being that environmental accounting informs policymaking, the fiscal inclination remains fundamental. This paper seeks to investigate the exclusion effect of cost benefit analysis and valuation of natural resources on the outcome of environmental decision-making.

Environmental accounting provides necessary information for management of the environment, parallel with the various economic activities that are pursued. Through environmental accounting, the depletion of the environment through economic activities can be measured, controlled, and remedied. Environmental accounting also provides the necessary parameter for compensation of the negative effects caused on the environment as a result of economic activities. Environmental accounting is a succinct balance of economic activities with the environmental effects of the various activities.

This study is based on the hypothesis that exclusion of cost benefit analysis and valuation of natural resources compromise the fiscal assessment in environmental accounting. The objectives of the study are assessing the current implementation of the environmental accounting in the context of meeting the necessary fiscal considerations, rationalizing the need for cost benefit analysis and valuation of resources in the process of environmental accounting, and explicating cost benefit analysis and valuation of resources in the context of environmental accounting. The inquiry is based on an evaluation of the available literature on environmental accounting with the specific aim of assessing the subject from a global perspective. The study focuses on an accounting...