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The Effects of Climate Change Policy on the Business Community: A Corporate Environmental Accounting Perspective
Author(s) -
Evangelinos Konstantinos,
Nikolaou Ioannis,
Leal Filho Walter
Publication year - 2015
Publication title -
corporate social responsibility and environmental management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.519
H-Index - 73
eISSN - 1535-3966
pISSN - 1535-3958
DOI - 10.1002/csr.1342
Subject(s) - environmental accounting , accounting , normative , business , perspective (graphical) , climate change , order (exchange) , accounting information system , environmental full cost accounting , environmental resource management , financial accounting , positive accounting , economics , computer science , finance , political science , ecology , artificial intelligence , law , biology
This paper proposes a normative framework to explain the influence of climate change policy on corporate environmental strategies, and at the same time describes how these strategies could be translated into an integrated environmental accounting model based on formal accounting statements. In particular, it aims to demonstrate a new approach of climate change accounting in order to overcome some important weaknesses of previous environmental accounting methods, such as accuracy and reliability. Currently, the majority of existing accounting methods record information on climate change on a voluntary basis. Even though they may assist businesses in designing essential environmental strategies and help public policy entities improve their knowledge on the results of such strategies, the informal nature of the accounting standards and the variable type of financial and non‐financial information make the use of such models untrustworthy and complicated. Finally, an empirical example of this framework is also presented. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment.