|Carbon Cost Accounting: The Impact of Global Warming on the Cost Accounting Profession
With the advent of the ratification of the Kyoto Protocol by most of the world, including recently, Australia, business entities need to consider issues such as trading in carbon allowances (or permits), investment in low- CO2 emission technologies, counting the costs of carbon regularity compliance and passing on the increased cost of carbon regulation to consumers through higher prices. Such considerations require information for
informed decision making, thus the need for cost accounting and cost management techniques and measures is evident.
It is demonstrated in this paper that the information from the strategic cost accounting systems will be particularly useful in this new carbon-economy, especially in evaluating the ‘whole-of-life’ costs in terms of carbon emissions relating to products and services.
This paper reports on a research study that was conducted to study the impact of the Kyoto protocol on cost accounting and cost management.
Kyoto Protocol, Global Warming, Carbon Cost Accounting, Life Cycle Costing, Whole-of-Life Costs, Product-Distance