Page 319 - Ebook HTKH 2024

Currently, there are many definitions of environmental costs from various
perspectives, but there is no consensus on the concept of environmental costs (IFAC

2005).
- According to the Organization for Economic Co-operation and Development
(OECD), environmental costs are "costs related to the actual or potential degradation of
natural assets due to economic activities."
- From a traditional viewpoint, environmental costs are those incurred for
environmental protection through recycling and waste treatment. However, this notion
is now considered insufficient as it overlooks costs associated with efforts to reduce
resource usage and the material costs of waste. This omission hinders the ultimate goal

of environmental accounting, which is to provide information aiding managers in
making appropriate decisions. Environmental costs are also seen as costs for site clean-
up post-production and wastewater treatment. Environmental management policies
focusing on end-of-pipe technologies may yield short-term profits but are costly in the
long run due to inefficient resource use, leading to increased waste costs.
- According to UNDSD (2001, p.11), environmental costs encompass all expenses

associated with environmental damage and protection, including costs to prevent
environmental damage, waste disposal costs, environmental protection planning costs,
environmental control costs, and costs to remediate potential damage affecting the
enterprise and the community.
- The German Federal Environmental Ministry (FEM, 2003) defines
environmental costs as "the term used to refer to various costs related to environmental
management, protection measures, and environmental impacts. These costs originate

from different cost elements, departments, and purposes."
- Jasch (2003) suggests that environmental costs may include waste treatment
costs, prevention costs, remediation costs, and investment costs related to environmental
issues, as well as external costs such as taxes and fines for environmental regulation
violations. Most of these costs are not systematically recorded or allocated to the
responsible products or processes but are simply included in overall production costs.

Failure to fully account for environmental costs leads to distorted and inaccurate
calculations. Therefore, the concept of waste must be clarified, as it represents materials
purchased but not transformed into products, indicating production inefficiency. Thus,
material costs and labor costs wasted in producing non-commercial outputs should be
recognized as environmental costs.
- According to Lee et al. (2004), environmental costs are direct and indirect
expenses related to preventing or mitigating environmental impacts during the
production process. A broader perspective shows that environmental costs include direct

and indirect costs associated with material and energy use, along with related handling
costs such as environmental liability insurance, compliance costs, permit fees, and fines
(Schaltegger & Wagner, 2005; Schaltegger & Burritt, 2000). Traditional accounting
views environmental costs as pollution treatment expenses and related

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