Environmental Costs

The environmental impact of the tanning industry is generally significant with outputs of wastes, i.e. high concentrations of organics, salts and heavy metals (chromium compounds), both in solid and liquid form, as a result. In order to bring the tanning industry more in line with present environmental thinking, various methods have been devised to reduce impacts. The underlying study proposes a modification of the method for unhairing-liming of hides where the unhairing-liming liquids are reused several times after being recharged by reduced quantities of chemicals. The study, therefore, aims at reducing both the economic and environmental costs of the unhairing-liming process. Experiments were carried out at lab scale with a simulation apparatus designed for the purpose. Life cycle assessment was used to evaluate the net environmental benefits of the modified method. The present value approach was used to evaluate the economic feasibility of the modified method. The quality of the...

Environmental Management Accounting (EMA) is concerned
with physical and monetary information, therefore enabling a new type of analysis that supports decision making while considering the environmental dimension. However, for an organization to apply EMA is necessary to meet business requirements and therefore the potential benefits and likely costs of the implementation should be assessed in the first place. The first objective of this paper is to highlight the reasons for implementation of EMA
referring to eco-efficiency, cost-effectiveness, investment appraisal, strategic positioning and compliance. The second is to presents a high-level blueprint for EMA implementation for a theoretical company and highlight the factors that influence the success of the implementation. The conclusions suggest that given the multitude of EMA methodologies, comparative studies might shed more light for practitioners.

The study examined the effect of environmental costs on the market performance of Nigerian listed oil and gas firms over a ten-year period, from 2011 to 2020. Data were extracted from annual reports of listed oil and gas companies in Nigeria, and the panel least square regression technique was used to examine the effect of environmental costs spending on the market performance of listed oil and gas companies in Nigeria. Environmental costs was measured using Pollution control costs (PCC), Penalty costs (PC) and Donation, contribution and charity (DCC) while market performance was measured using Earnings per share (EPS) and Market price per share (MPS). The study revealed that there is a positive and insignificant relationship between donations and charitable contributions and earnings per share, negative and significant relationship between penalty costs and earnings per share, positive and insignificant relationship between pollution control costs and earnings per share of listed oil and gas companies in Nigeria. The result also showed that there is a positive and insignificant relationship between donations and charitable contributions and market price per share, negative and significant relationship between penalty costs and market price per share, negative and insignificant relationship between pollution control costs and market price per share of listed oil and gas companies in Nigeria. The study recommended that Nigerian firms should consciously invest in their environment, and other environmentally-friendly notions, as doing so not only promotes achievement of the greatly recognised environmental sustainability goals, but also conjoins with market performance of the firm.

The paper is based on an iron-ore mining project which was proposed to be established in a Permanent Reserved Forest (PRF) in the northeast of Peninsular Malaysia, covering a total land area of 2,360ha of natural Tropical Rain Forest (TRF).  Our analyses show that the proposed project yields a series of very low Benefit-Cost Ratio (BCR) values of less than 1.0, at least during the first decade of its operation.

The objective of this study aimed to examine the effect of environmental Remediation Cost management on the social harmony of solid mineral resource-based communities cum firm performance in Nigeria. Studies within environmental remediation costs have considerably dealt with community conflicts as a bridge of miners-community agreement by the mining firm with minimal or no regard for mismanagement of environmental remediation costs. This research utilized Ex-Post Facto and survey research design. The sample of this study was based on fifty-six (56) solid mineral firms that meet the government's 3 million naira royalty threshold. The proxies for environmental remediation cost include annual community development cost and infrastructural cost, while Contribution to Gross Domestic Product value in Nigeria was employed as the performance measure. Ordinal regression and Augmented Dickey-Fuller test regression analysis via E-view 9 statistical software were used to test the hypothesis. Findings revealed that community conflicts are characterized by contentions among communities on mineral rights and benefits rights. The result also showed that mismanagement of annual community development benefits led to community conflicts that affect firm performance. This study recommends that government should intervene by creating an environmental intervention fund through which all the environmental challenges emanating as a result of mining activities can be timely addressed and the standard of living in the community be improved.

Environmental issues have over the last few years become an increasing concern for both the public and for companies, but, less is known about how companies could internalize the negative effects of environmental issues. Public regulators are taking a tougher stance with regards to environmental regulations. As regulations become stricter, firms will have to pay the cost of compliance. In this paper, we attempt to shed some light on how firms could internalize these environmental effects and what the benefits of early internalisation could be. We do this by using a qualitative analysis, elaborating a case study in the Spanish road freight transport industry (i.e., international transport of goods by road) to compare the environmental behaviour of the analyzed company in 2009 and its current environmental approach. By conducting interviews in two differentiated periods, the main conclusion of this study is that, as regulation becomes more stringent, environmentally proactive firms will be more capable of facing the challenge of an accurate internalisation of environmental effects and consequently they could reinforce sustainable development and simultaneously reduce negative environmental impacts.

The environmental impact of the tanning industry is generally significant with outputs of wastes, i.e. high concentrations of organics, salts and heavy metals (chromium compounds), both in solid and liquid form, as a result. In order to bring the tanning industry more in line with present environmental thinking, various methods have been devised to reduce impacts. The underlying study proposes a modification of the method for unhairing-liming of hides where the unhairing-liming liquids are reused several times after being recharged by reduced quantities of chemicals. The study, therefore, aims at reducing both the economic and environmental costs of the unhairing-liming process. Experiments were carried out at lab scale with a simulation apparatus designed for the purpose. Life cycle assessment was used to evaluate the net environmental benefits of the modified method. The present value approach was used to evaluate the economic feasibility of the modified method. The quality of the produced leather was assessed by experts from the tanning sector (tanners). On the environmental level, the modified method reduced the environmental impact of the process by 24%, COD was reduced by 50% as well as sulfide which was reduced by 73% when the process water was recycled four times. The modified method requires some investment in new equipment and is a little more labor intensive as compared with the conventional method but does permit for savings in water up to 58% and chemicals up to 28% as well as wastewater treatment cost which was reduced by 58%. The modified method allowed for four times reuse of the unhairing-liming liquor without visibly affecting the quality of the final product of leather. It was concluded that both the economic and the environmental costs of the unhairing-liming process were reduced relative to the same of the conventional method.

This research investigates the impact of environmental cost on the financial performance of industrial companies in Iraq. The time-series data was collected from 25 companies chosen from the annual financial report and economic review of the Iraqi stock exchange (ISX) and oil sector for the period of 2014 to 2018. The statistical tool used for data analysis is the special package for social sciences SEM- AMOS and SPSS version 23. The statistical analysis results indicate that Conventional Cost has a positive and weak correlation with Financial Performance r=0.188, sig. 0.05; likewise, no correlation was found between Image and Relationship Costs and Financial Performance r=-0.137, sig.>0.05. The managements of industrial companies are urged to establish efficient environmental costing systems so as to ensure a corporate environment that is free of conflict which would ultimately lead to better corporate financial performance. The findings of this study contribute to the existing body of knowledge concerning the effect of environmental costs on the financial performance of industrial firms particularly those in the oil sector and listed on the Iraqi Stock Exchange, as most Iraqi studies had

Resumen:
El deterioro de la calidad ambiental es un asunto de orden global que cada día adquiere mayor trascendencia a nivel político y empresarial. Bajo esta lógica, muchas empresas han demostrado interés por impulsar conductas enmarcadas en el concepto de sostenibilidad y la presentación de resultados ambientales como un componente adicional a su información financiera. Sin embargo, tras analizar hechos reales, se evidencia que no hay un reconocimiento objetivo del costo total de los impactos ambientales asociados al consumo de recursos por parte de las empresas. Una  situación que obedece en parte al desconocimiento de metodologías para su valoración y a la ausencia de políticas estatales que regulen e incentiven su internalización y reconocimiento contable. Es por ello, que a partir de un estudio elaborado con la colaboración de tres entidades representativas del sector energético (EPM, ISAGEN, ISA), se pone en evidencia la postura empresarial respecto a la valoración, reconocimiento y representación de los costos ambientales en los informes financieros y contables de las compañías. Se expone la trascendencia histórica del tema a nivel mundial, las metodologías existentes para valorar este tipo de costos, su forma de cálculo, ventajas y algunas precisiones necesarias  para incentivar su revelación en la contabilidad.

Abstract:
The deterioration of environmental quality is an issue that every day acquires greater importance in the political and business environment worldwide. Under this logic, many companies have already shown interest in promoting the concept of sustainability and environmental results as an additional component for their financial information. However, when analyzing real facts, it is evident that there is no objective recognition of the full cost of the environmental impacts associated with the consumption of resources by companies. This situation is partly due to the lack of methodologies  for assessment and the lack of government policies that regulate and encourage the recognition and internalization of these costs. That is why, from a study conducted with the collaboration of three entities representing the energy sector (EPM, ISAGEN, ISA), it is evidenced the business posture in relation to assessment, recognition and representation of environmental costs in accounting and financial reporting of companies. The historical importance of this topic worldwide, the existing methodologies to assess such costs, its method of calculation, advantages and some details needed to encourage disclosure in accounting are presented.

The production of wheat crop for the year 2012-13 is estimated to be 24.2 million tons against last year’s production of 23.4 million tons. The major reasons for this enhanced production were increase in support price from Rs.1050 to Rs.1200 per 40 Kg which encouraged improved seed usage and fertilizers. There was also better weather and comparatively more water available from the reservoirs. The target for wheat production for 2013- 14 has been fixed at 25.0 million tons. The fertilizer has raised the expenses of the inorganic farmers, which are not, used in organic farming. Cash cost in case of organic and inorganic farming is Rs. 23053.00 and 25846.00 respectively. The non-cash cost of organic and inorganic are Rs.19389.65 and 18815.10 respectively. Total cost is the combination of cash and non-cash costs that is Rs.42442.65 and 44661.00 in organic and inorganic farming. Gross margin (GM) is obtained by subtracting the cash cost from the gross value of product. GM is Rs.33142.65 ...

This research investigates the impact of environmental cost on the financial performance of industrial companies in Iraq. The time-series data was collected from 25 companies chosen from the annual financial report and economic review of the Iraqi stock exchange (ISX) and oil sector for the period of 2014 to 2018. The statistical tool used for data analysis is the special package for social sciences SEM-AMOS and SPSS version 23. The statistical analysis results indicate that Conventional Cost has a positive and weak correlation with Financial Performance r=0.188, sig. <0.05, while there is a negative and moderate correlation between Potential Hidden Costs and Financial Performance r=-0.430, sig. <0.

This paper presents the results of a descriptive study on assessment of pollution loads
discharged from three areas in Palestine. The difficulties and chances to reduce pollution loads of combined municipal sewage and urban stormwater discharges are discussed. Major obstacles behind a poor sewage infrastructure in Palestine were identified as the followings: insensitive Israeli environmental policy now and during the past period of occupation, lack of financial and technical human resources, and insufficient maintenance of sewage facilities, poor environmental awareness, and commitment. The result is a severe negative environmental impact on the aquatic environment and public health. Through personal contacts, actual data on the sewage infrastructure facilities of three representative large cities in the West Bank (Jenin, Albireh, and Hebron) are presented and discussed. By 2005, about 255,000 inhabitants will be living in the three selected Palestinian large cities (Jenin, Albireh, and Hebron). The total annual organic (BOD) and inorganic (NH4-N) pollution loads from Albireh and Jenin cities are 3,500 t and 850 t per year. This annual pollution is exacerbated through the Israeli settlements, which has been estimated to reach a pollution load of about 400,000 population equivalents (PE). The estimated load emissions in BOD and nitrogen from Albireh sewage works are 3 and 35 percent of the initial pollution loads, respectively. A summary of the urgent research priorities to minimize the pollution loads and measures to abate the negative impacts on the aquatic environment and public health is provided.

The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO2 per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) to feed an electric arc furnace (EAF) using recycled steel scrap was considered. The approach introduced is totally new; it enables practitioners, managers, and experts to conduct a preliminary economic assessment of innovative steelmaking solutions under market uncertainty. A numerical simulation has been conducted to evaluate the profitability of the investment considering the economic and environmental costs. It emerged that the investment is profitable in any case from an economic perspective. On the contrary, considering the environmental costs, the profitability of the investment is not guaranteed under certain circumstances.

The steelmaking processes are considered extremely energy-intensive and carbon-dependent processes. In 2018, it was estimated that the emissions from global steel production represented 7–9% of direct emissions generated by fossil fuels. It was estimated that a specific emissions value of 1.8 tCO2 per ton of steel was produced due to the carbon-dependent nature of the traditional blast furnace and basic oxygen furnace (BF-BOF) route. Therefore, it is necessary to find an alternative solution to the BF-BOF route for steel production to counteract this negative trend, resulting in being sustainable from an environmental and economic point of view. To this concern, the objective of this work consists of developing a total cost function to assess the economic convenience of steelmaking processes considering the variability of specific market conditions (i.e., iron ore price, scraps price, energy cost, etc.). To this purpose, a direct reduction (DR) process fueled with natural gas (NG) t...

The environmental impact of the tanning industry is generally significant with outputs of wastes, i.e. high concentrations of organics, salts and heavy metals (chromium compounds), both in solid and liquid form, as a result. In order to bring the tanning industry more in line with present environmental thinking, various methods have been devised to reduce impacts. The underlying study proposes a modification of the method for unhairingeliming of hides where the unhairingeliming liquids are reused several times after being recharged by reduced quantities of chemicals. The study, therefore, aims at reducing both the economic and environmental costs of the unhairingeliming process. Experiments were carried out at lab scale with a simulation apparatus designed for the purpose. Life cycle assessment was used to evaluate the net environmental benefits of the modified method. The present value approach was used to evaluate the economic feasibility of the modified method. The quality of the...

The environmental impact of the tanning industry is generally significant with outputs of wastes, i.e. high concentrations of organics, salts and heavy metals (chromium compounds), both in solid and liquid form, as a result. In order to bring the tanning industry more in line with present environmental thinking, various methods have been devised to reduce impacts. The underlying study proposes a modification of the method for unhairing-liming of hides where the unhairing-liming liquids are reused several times after being recharged by reduced quantities of chemicals. The study, therefore, aims at reducing both the economic and environmental costs of the unhairing-liming process. Experiments were carried out at lab scale with a simulation apparatus designed for the purpose. Life cycle assessment was used to evaluate the net environmental benefits of the modified method. The present value approach was used to evaluate the economic feasibility of the modified method. The quality of the produced leather was assessed by experts from the tanning sector (tanners). On the environmental level, the modified method reduced the environmental impact of the process by 24%, COD was reduced by 50% as well as sulfide which was reduced by 73% when the process water was recycled four times. The modified method requires some investment in new equipment and is a little more labor intensive as compared with the conventional method but does permit for savings in water up to 58% and chemicals up to 28% as well as wastewater treatment cost which was reduced by 58%. The modified method allowed for four times reuse of the unhairing-liming liquor without visibly affecting the quality of the final product of leather. It was concluded that both the economic and the environmental costs of the unhairing-liming process were reduced relative to the same of the conventional method.