Environmental Management Accounting: The State Of Play

Abstract

Environmental management accounting (EMA) is characterised by a lack of standard taxonomy. Minimal consensus, either in terminology or definitions, has been a feature of the literature. This paper seeks to not only provide a structured overview of the extant literature on environmental management accounting, but to do so in a manner that allows the reader to better understand the key issues and concerns. The private cost approach suggests that corporate environmental outcomes should be part of the characteristic management accounting undertaken by a firm. Conversely, the external cost approach suggests that only by recognizing externalities or the non-market costs imposed on society by firms, will management accounting deliver the required level of environmental outcomes.