Page 320 - Ebook HTKH 2024

taxes and fees, which are tangible costs representing only a small fraction of an
enterprise's total environmental costs (IFAC, 2005).

At the macroeconomic level, environmental costs encompass both internal
business costs and external (social) costs, which fall under government responsibilities
such as labor loss due to pollution, ecosystem destruction, and natural resource
degradation.
In this study, the focus is on internal environmental costs within enterprises,
excluding external environmental costs that impact society but are not the direct
responsibility of enterprises and do not factor into product production costs.
To determine environmental costs within enterprises, it is necessary to consider not

only environmental protection costs but also costs associated with waste generation
(solid, liquid, or gaseous). Waste is produced from materials purchased and paid for by
the enterprise but not transformed into commercial products. Environmental costs can be
offset by revenues from selling by-products and waste, rewards for pollution control, or
permits for clean technology. Identifying and understanding the sources and quantities of
environmental costs help enterprises accurately calculate product costs and set product

prices.
Despite various definitions of environmental costs, scientists agree that they stem
from activities to protect the environment and are caused by the impacts of business
operations on the environment. Based on the synthesis and analysis of definitions
provided by organizations and individuals, the author believes that "Environmental costs
are recognized as environmental protection costs and waste costs. Environmental
protection costs are associated with the environmental protection activities of

enterprises as stipulated in the Environmental Protection Law, including costs for
preventing and mitigating adverse environmental impacts, responding to environmental
incidents, remediating pollution and degradation, improving and restoring the
environment, and rationally utilizing natural resources to maintain a healthy
environment. Waste costs include material and processing costs of waste."
3.2. Characteristics of environmental costs

From the perspective that environmental costs are identified as the costs of
environmental protection and waste management, environmental costs will be
recognized when they satisfy the following characteristics:
- Environmental costs are expenses incurred in the production and business
activities of the enterprise: These costs arise within the enterprise, including hidden
costs, contingency costs, and costs related to the flow of raw materials and energy.
- Costs incurred related to the enterprise’s environmental issues: These include
prevention, mitigation, environmental control; environmental treatment and cleanup;

remediation of environmental incidents; technological and production process
improvements towards environmental friendliness; damages and losses related to
natural resources associated with business operations, financial impacts, and the
enterprise’s image and position due to environmental harm caused.

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