Research On The Environmental Accounting Control

The exploitation and use of the resource has devoted to the civilization, but the excessive and improper use of the resource can lead to the lack of resource and environmental damage, so how to protect the life right by environmental control has become the top problem. But as yet, the environmental control objective based on life right safeguard has not been realized; on the contrary, it has the negative result. There are some difficulties in the process of the objective's realization at present. The government carried out many measures to realize the target that had been set, however, the firms often paid lip service to these controlling measures, so these environmental control measures can't go deep into the firms and the entire control result had not meet the requirement expected. The reason that led to this situation is that there is no the systematic environmental control mechanism. Thus the government had no indicators that can check and appraise. So it is the urgent question is that the inside mechanism should be established, which not only can have the efficient control of intra-firm, but also can match the out government environmental control and gain the synergetic effect. Because the accounting control has the fundamental and realistic features in the firms, so the environmental accounting is put outward to meet this need in the research. This research uses the accounting control thoughts and means to establish the environmental accounting control mechanism in governmental level and firms'level with main point of environmental control and the objective of life security. What is more, this research has designed the environmental accounting control by using the example of the Xuzhou SF Aluminum Co., Ltd to illustrate the EAC system. In summary, the five problems have been resolved in this research.Firstly, the basic theory of environmental accounting control (EAC) is resolved. Through researching the right to subsistence theory, property rights theory, material balance theory, and accounting control theory, the EAC has get the support of theories. The right to subsistence theory and property rights theory supply the EAC with the objective setting and realization, and the material balance theory gives the calculating principle for the environmental cost. Then the accounting control theory provides the EAC with detail control approaches. Second is the EAC's aims question. The objective of EAC is to safeguard the life right of the generalized stakeholders, and allocate the environment service value of a region to the industry firms as the initial value of the ecosystem equity in a firm. The firms are sure to make use of environmental control behavior to assure the value of the ecosystem equity increasing or unchanged, in order to keep the right to life of the generalized stakeholders not to be hurt. Third is the content and approaches of EAC. This research has designed the"ecosystem equity-environmental cost-resource loss"three levels control mechanism. The ecosystem equity is the top-level control object. The government set up the change standard of the ecosystem equity to improve the environmental control behavior of firms. In order to keep the ecosystem equity increasing or unchanged, the environmental cost and resource loss should become the focal point of control. The control of environmental cost includes two steps. The first step is to rationalize the distribution of total environmental cost, and add the environmental cost that is related with the resource loss to the firms'environmental cost category. And firms can minimize the environmental cost by accounting and controlling the resource loss. Thus, through distributing and controlling the environmental cost, the external costs that firms'pollution makes can be internalized, and the problem of firms'environmental control motion can be solved efficiently. Fourth is the environmental accounting control information disclosure. In order to improve the use of environmental information in the environmental control, the independent second accounting report system is established to disclose the environmental information. By designing resource balance sheet, ecological income statement, and material flow statement, the environmental accounting control information is disclosed significantly. Thus, the second accounting report system is able to match with the means of environmental control and gain the better control result. The fifth is the harmonious problem of EAC and government environmental control. The EAC belongs to the government environmental control in macro level, and though the EAC in micro level can get the expected results depends on how to deal with the relation to the government environmental control. This research constitutes the academic and empirical model to prove this harmonious function from the environmental accounting control. The results show that government environmental control and environmental accounting control have no harmonious effect, because there are no perfect EAC. So this research considers fully the harmonious effect in design process, and use system dynamics to simulate this harmonious effect. The conclusions of simulation is that the EAC should play the role of control and reflection function with the background that the government has the regular environmental control, and gain the better control with the government environmental control. By researching on theory and practice of EAC, there are five contributions in this research, including: (1) to advance that the safeguard of the generalized stakeholders'life right should be the objective of EAC. The aim of firms'environmental control is to protect the life right, and this research uses some institutional arrangement to transform the life right to ecosystem equity that firms can control. Thus the people-oriented control concept has become the detail control content; (2) the research uses the resource loss and conversion coefficient to calculate the second environmental cost, especially the calculation of the resource loss indicates the objectivity and innovation. (3) This research has established the"ecosystem equity-environmental cost-resource loss"three levels control mechanism, which indicates theoretical and practical. The ecosystem equity reflects the life right, and the calculation and optimization of the second environmental cost can improve firms'environmental behavior. Then the resource loss is the base control object, which influences directly the environmental cost and determines the change of the ecosystem equity; (4) the research designs the second report system for disclosure of the environmental accounting control information. This system is set up for the shortcoming of the traditional report system. The second report system not only can make the role of control, but also can disclose the environmental information, and put the society power to participate the environmental control; (5) this research advances that the EAC can coordinate with the government environmental control, but the premise is that the government should have the regular control, and not the irregular control. The conclusion can help the government and firms improve their environmental control behavior.