Question

what accounting theories can be used to explain carbon pricing in environmental accounting?

Answer 1

There is a close link between carbon pricing and environmental accounting. Following theories can be used to explain the carbon pricing in environment accounting:

1. Certified Emission Reductions Accounting - Comprises both monetray and non-monetary evaluation and regulating of Certified Emission Reduction(CERs) and Green House Gases(GHGs) emissions at every level and evaluating the effect of these emission credits on the carbon cycle of eco systems.
2. Global Environmental Acounitng - This accounting approach deals in ecology and economics at world level.
3. National environment Accounitng - This accounting deals with economics at national level.
4. Corporate Environmental accounting - This approach means focussing on cost structure and environmental performance of a corporation.
5. Environmental Management Accounting - This approach is used on making business strategy decisions regarding money related information on environment related costs, earnings and savings.