Enterprise Environmental Cost Internalization Implementation Way To Study

As environmental issues become increasingly prominent, the world countries pay more and more attention to environmental protection, and begin to take a variety of environmental protection measures. The rapid economic development in our country still sacrifice the expense of the environment and resources, the pressure of environmental pollution control increasing, annual environmental investment corrosion a large part of GDP. Environmental issues have become one of the main bottlenecks restricting China’s economic development. The generation of environmental pollution problems due to external environmental costs, the key to solving environmental problems is to solve the problem of internalization of external environmental costs.This paper defines the definition and related concepts of the environmental costs and firstly, and then analyzes the necessity and current ways of internalization of environmental costs. These make a good preparation for the following studies. The way of internalization of environmental costs in theoretical research and practical application include:environmental tax, pollution charges, emissions trading, environmental management system (EMS), environmental labeling and others. In the consideration that the national situation and the status of implementation, the paper divides these five ways into two kinds:command-control and corporate initiative. The second part of the paper analyzes the advantages and disadvantages of the theory and their cost-effectiveness from practice of operating conditions and other aspects of these two types of channels. Then, we choose three companies with different environmental consciousness as a case to analyze the effect of internalization of environmental costs and the total environmental cost. The three sample enterprises belong to the same high-polluting industries, the main business and size are similar, but environmental awareness at high, medium and low level. After calculating the three companies’private costs and social costs and comparative analysis of the total environmental cost of the three companies’, we conclude that the initiative way with high private costs but the lowest social costs, the lowest total social cost in the three companies. Companies with poor environmental awareness with the lowest private costs, but the social costs caused by the frequent environmental accidents and casualties can not be measured by money. The article finally come to the environmental management system is theoretically the best way to internalize environmental costs. But because of the actual situation of each enterprise are different, the adoption and operation of environmental management system with high costs, this article recommends that companies should be based on their own financial and management level of flexibility and governments should encourage qualified enterprises to take the initiative to adopt environmental management system.