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A Model For Environmental Costs For Corporations (MEC)
Institution:1. School of Science and Engineering, The Chinese University of Hong Kong, Shenzhen, China;2. Shenzhen Research Institute of Big Data, Shenzhen, China;3. Department of Electronic Engineering, City University of Hong Kong, Hong Kong;4. Institute for Telecommunication Research, University of South Australia, Australia;5. Department of Information Engineering, The Chinese University of Hong Kong, China
Abstract:Managing environmental issues and setting priorities requires an environmental costing procedure. The present study developed a "Model for Environmental Costs" (MEC) using five cost categories. The testing of the model in a furniture manufacturing plant showed that 35.2% of the total environmental costs were in effect mitigating correction costs, while 20.5% were prevention costs. Total environmental costs were 2.13% of the added value. The total amount of waste material amounted to 28% of the total material input. The MEC can be used as an internal management tool for priority setting and resource allocation, or for comparative analysis of industrial categories.
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