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disadvantages of implementing green accounting as well as Factors affecting the
application of green accounting at businesses in Hanoi; From there, we provide

recommendations for the parties to promote the implementation of green accounting in
businesses in this area.
2. Research Overview
Research on green accounting has been carried out in many different contexts,
including the following case studies.
According to Cohen and Robbins (Nevin Cohen&Paul Robbins, 2011), green
accounting is defined as an accounting system that records the indirect costs and benefits
of economic activities, such as the environmental impact and health consequences of

business decisions and plans.
Meanwhile, in Bebbington's view, green accounting is the process of identifying,
quantifying, and reporting environmental costs related to an organization's activities,
products, or services (Bebbington, Larrigana, & Moneva, 2008); Green accounting
includes estimating environmental costs, identifying liabilities and costs payable related
to the handling of environmental issues.

Gray states that green accounting is a tool for calculating an organization's
emissions, allowing them to track, report, and potentially earn carbon credits to reduce
emissions to varying degrees (Gray & Bebbington, 2010).
In research on the role of green accounting, Makori and Jagongo describe green
accounting as the skill of generating accurate information in monetary reports; they
consider the correlation between green accounting and the profitability of companies.
The study was conducted on information gathered from randomly selected companies

in the Bombay stock exchange (Makori, D. & Jagongo, K, 2013). The results of the
study show that there is a significant negative relationship between green accounting
and earnings per share (EPS) and a significant positive relationship between green
accounting and dividends per share.
Andreas Lako commented that environmental accounting issues are becoming
increasingly important due to serious global environmental pollution problems and

serious environmental disasters in recent years, the author assessed the disasters caused
by the degradation of the earth's ecosystem, made recommendations on the
responsibility of businesses and the Government in protecting the living environment
and dealing with pollution problems (Lako, 2018).
According to Dutta, green accounting issues are related to the profitability of
enterprises (Tapash Kumar Duttaa, 2020). The relationship between green accounting
and financial performance can be observed in terms of income and expenses. On the
income side, consumers tend to be willing to pay higher prices for environmentally-

friendly products. On the cost side, there are many benefits that companies receive due
to increased efficiency, avoiding potential debts, being better positioned to meet or
exceed standards, and creating barriers to entry for potential competitors.

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