Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The disclosure of environmental conservation costs and its relation to eco-efficiency

The disclosure of environmental conservation costs and its relation to eco-efficiency PurposeThis paper aims to examine whether the amount of costs disclosed as relating to environmental controls is associated with environmental performance in terms of carbon-based eco-efficiency, and whether any relation supports voluntary disclosure theory or legitimacy theory arguments. Further, this paper attempts to determine whether the relations differ across the initial Kyoto Protocol period.Design/methodology/approachIn this study, the focus was on Japanese firms over the period from 2002 to 2012. Disclosed environmental control costs (capital expenditures and operating costs) were identified and eco-efficiency measures based on carbon emissions were calculated. Relations were tested for using regression models controlling for other potential impact factors.FindingsThis study’s results indicate a negative relation between disclosed levels of environmental control costs and eco-efficiency performance measures, and, for two of our three eco-efficiency metrics, this is more pronounced over the Kyoto Protocol period.Research limitations/implicationsThese results support a legitimacy theory (as opposed to voluntary disclosure theory) explanation for the relation between the levels of disclosed environmental control costs and carbon-based eco-efficiency.Originality/valueThis study is the first to explore how flexibility in cost classification may be used by companies to foster a disclosure strategy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Sustainability Accounting, Management and Policy Journal Emerald Publishing

The disclosure of environmental conservation costs and its relation to eco-efficiency

Loading next page...
 
/lp/emerald-publishing/the-disclosure-of-environmental-conservation-costs-and-its-relation-to-kjN3g80TPu
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2040-8021
DOI
10.1108/SAMPJ-07-2016-0039
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to examine whether the amount of costs disclosed as relating to environmental controls is associated with environmental performance in terms of carbon-based eco-efficiency, and whether any relation supports voluntary disclosure theory or legitimacy theory arguments. Further, this paper attempts to determine whether the relations differ across the initial Kyoto Protocol period.Design/methodology/approachIn this study, the focus was on Japanese firms over the period from 2002 to 2012. Disclosed environmental control costs (capital expenditures and operating costs) were identified and eco-efficiency measures based on carbon emissions were calculated. Relations were tested for using regression models controlling for other potential impact factors.FindingsThis study’s results indicate a negative relation between disclosed levels of environmental control costs and eco-efficiency performance measures, and, for two of our three eco-efficiency metrics, this is more pronounced over the Kyoto Protocol period.Research limitations/implicationsThese results support a legitimacy theory (as opposed to voluntary disclosure theory) explanation for the relation between the levels of disclosed environmental control costs and carbon-based eco-efficiency.Originality/valueThis study is the first to explore how flexibility in cost classification may be used by companies to foster a disclosure strategy.

Journal

Sustainability Accounting, Management and Policy JournalEmerald Publishing

Published: Mar 6, 2017

References