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Ecoefficiency: Defining a role for environmental cost management

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  • Burnett, Royce D.
  • Hansen, Don R.

Abstract

This study investigates the relationship between environmental performance and productive efficiency in the United States electric utility industry before and after the 1990 Clean Air Act Amendments. Using Data Envelopment Analysis (DEA), cross-sectional examinations reveal lower polluting plants are more efficient than higher polluting plants. Longitudinal analyses indicate plants can simultaneously reduce pollution and increase relative efficiency. Collectively, these results are evidence that proactive environmental management can reduce environmental costs and thus, lends support for adopting an environmental cost management system.

Suggested Citation

  • Burnett, Royce D. & Hansen, Don R., 2008. "Ecoefficiency: Defining a role for environmental cost management," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 551-581, August.
  • Handle: RePEc:eee:aosoci:v:33:y:2008:i:6:p:551-581
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    References listed on IDEAS

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    Cited by:

    1. Collins C. Ngwakwe, 2009. "Justifying Environmental Cost Allocation in a Multiple Product Firm: A Case Study," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 7(4), pages 403-420.
    2. repec:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-015-1970-x is not listed on IDEAS
    3. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali, 2015. "A new slacks-based measure of Malmquist–Luenberger index in the presence of undesirable outputs," Omega, Elsevier, vol. 51(C), pages 29-37.
    4. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    5. Stefan Schaltegger & Roger Burritt & Dimitar Zvezdov & Jacob Hörisch & Joanne Tingey-Holyoak, 2015. "Management Roles and Sustainability Information. Exploring Corporate Practice," Australian Accounting Review, CPA Australia, vol. 25(4), pages 328-345, December.
    6. repec:eee:jomega:v:76:y:2018:i:c:p:112-127 is not listed on IDEAS
    7. Henri, Jean-François & Journeault, Marc, 2010. "Eco-control: The influence of management control systems on environmental and economic performance," Accounting, Organizations and Society, Elsevier, vol. 35(1), pages 63-80, January.
    8. Welch, Eric & Barnum, Darold, 2009. "Joint environmental and cost efficiency analysis of electricity generation," Ecological Economics, Elsevier, vol. 68(8-9), pages 2336-2343, June.
    9. Michael Fakoya, 2015. "Adopting material flow cost accounting model for improved waste-reduction decisions in a micro-brewery," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(5), pages 1017-1030, October.
    10. Xiaowei Song & Yongpei Hao & Xiaodong Zhu, 2015. "Analysis of the Environmental Efficiency of the Chinese Transportation Sector Using an Undesirable Output Slacks-Based Measure Data Envelopment Analysis Model," Sustainability, MDPI, Open Access Journal, vol. 7(7), pages 1-20, July.
    11. Du, Huibin & Matisoff, Daniel C. & Wang, Yangyang & Liu, Xi, 2016. "Understanding drivers of energy efficiency changes in China," Applied Energy, Elsevier, vol. 184(C), pages 1196-1206.
    12. repec:spr:jmgtco:v:28:y:2017:i:2:d:10.1007_s00187-016-0239-0 is not listed on IDEAS
    13. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Toloo, Mehdi & Ghazizadeh, Mohammad Sadegh, 2016. "Eco-efficiency considering the issue of heterogeneity among power plants," Energy, Elsevier, vol. 111(C), pages 722-735.
    14. Ramli, Noor Asiah & Munisamy, Susila, 2015. "Eco-efficiency in greenhouse emissions among manufacturing industries: A range adjusted measure," Economic Modelling, Elsevier, vol. 47(C), pages 219-227.
    15. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali & Shadman, Foroogh, 2014. "Power industry restructuring and eco-efficiency changes: A new slacks-based model in Malmquist–Luenberger Index measurement," Energy Policy, Elsevier, vol. 68(C), pages 132-145.
    16. repec:ibn:jmsjnl:v:7:y:2017:i:3:p:112-119 is not listed on IDEAS
    17. Marc Journeault, 2010. "The Influence Of Eco-Control On Environmental And Economic Performance: A Natural Resourcebased Approach," Post-Print hal-00481559, HAL.

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