An Empirical Analysis of Environmental Cost Accounting in Mining Companies in Jordan

Dr. Nawaf Samah Mohammad Thuneibat, Dr. Mithkal Hmoud Alqaraleh, Prof. Dr. Abdulnaser Ibrahim Nour


This research paper aims to spot the explanations for corporate implementation of environmental data in their inner decision-making processes. It highlights management practices and, in particular, cost management in resolving environmental issues. The study adopts an associate degree exploratory analysis approach. The analysis technique is based on field studies of nine mining industries in Jordan. The eco-efficiency theory braces this study to unravel intricacy in interviewing the managers, so the survey adopted a structured form, and some extra phone interviews were conducted.  The findings divulge that environmental cost accounting data is qualified to shore up internal decision-making processes and external communication. It bridged the gap between company headquarters communication and concern perspective. The findings show low awareness of the connection between environmental and economic performance, a growing awareness of the positive relationships between environmental stance and the company image. The research is targeted at nine business organizations; thus, the results don't seem to be extended on the far side of the respondents.  The study highlights the reasons for using the environmental data and the measured price of environmental area activities to investigate the explanations for decision-making within business organizations. It caters to boosting the effectiveness of ecological data and facilitates the diffusion of environmental accounting practices. The research identifies the grounds for applying environmental data in internal decision-making processes and the gaps in the logical adoption of ecological criteria. It highlights components supportive in tracing the pathways for additional analysis of environmental accounting practices.



Keywords: environmental cost accounting, internal decision-making processes, mining companies, eco-efficiency theory, Jordan.



Full Text:



SLAPER, T. F., & HALL, T. J. The triple bottom line: What is it and how does it work. Indiana business review, 2011, 86(1)

INITIATIVE, G. R.. Sustainability reporting guidelines, Version 3.0. 2006, Amsterdam: GRI.

ADAMS, C.A., BURRITT R.L. and FROST, G.R., "ARC Discovery project." In: Proceedings of the 2nd Italian Conference on Social and Environmental Accounting Research, Rimini, September 17-19, 2008. Bologna: University of Bologna, 2008:34-45.

ADAMS, C. A. The ethical, social, and environmental reporting‐performance portrayal gap. Accounting, Auditing & Accountability Journal, 2004, 17(5):731-757.

O'DWYER, B. Managerial perceptions of corporate social disclosure: an Irish story. Accounting, Auditing & Accountability Journal, 2002, 15(3): 406-436.

ADAMS C.A. and FROST, G.R. Integrating sustainability reporting into management practices. Accounting Forum, 2008, 32(4):288-302 doi:10.1016/j.accfor.2008.05.002.

O'DWYER, B., & OWEN, D. L. Assurance statement practice in environmental, social and sustainability reporting: a critical evaluation. The British Accounting Review, 2005, 37(2):205-229.

HENRI, J. F., & JOURNEAULT, M. Eco-control: The influence of management control systems on environmental and economic performance. Accounting, Organizations and Society, 2010, 35(1): 63-80.

SUNDIN, H., & BROWN, D. A. Greening the black box: integrating the environment and management control systems. Accounting, Auditing & Accountability Journal, 2017, 30(3): 620-642.

ALBELDA-PÉREZ, E., CORREA-RUIZ, C. and CARRASCO-FENECH, F. Environmental management systems as an embedding mechanism: a research note", Accounting, Auditing & Accountability Journal, 2007, 20(3): 403-422.

LONGONI, A., LUZZINI, D., & GUERCI, M. Deploying environmental management across functions: the relationship between green human resource management and green supply chain management. Journal of Business Ethics, 2018, 151(4): 1081-1095.

LIU, Y., SRAI, J. S., & EVANS, S. Environmental management: the role of supply chain capabilities in the auto sector. Supply Chain Management: An International Journal. 2016, 21(1):1-19.

BAIRD, K.M., HARRISON, G.L. and REEVE, R.C. Adoption of activity management practices: a note on the extent of adoption and the influence of organizational and cultural factors. Management Accounting Research, 2004, 15(4):383-399.

AL-OMIRI, M., and DRURY, C. A survey of factors influencing the choice of product costing systems in UK organizations", Management Accounting Research, 2007, 18(4): 399-424.

CINQUINI, L., & TENUCCI, A. Strategic management accounting and business strategy: a loose coupling? Journal of Accounting & Organizational Change, 2010, 6(2): 228-259

CINQUINI L., COLLINI P., MARELLI A., and TENUCCI A. An exploration of factors affecting the diffusion of Advanced Costing techniques: a comparative analysis of two surveys (1996-2005). In: Proceedings of the 31st Annual Congress of the European Accounting Association, Rotterdam, April 23-25, 2008. Brussels: EAA.

WIDODO, H. Economic performance and factors affecting the context of socio-economic, environmental accounting (SEEA). In: 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017). Amsterdam: Atlantis Press, 2018: 10-14

BALL, P., & LUNT, P. Lean eco-efficient innovation in operations through the maintenance organization. International Journal of Production Economics, 2018: 107091.

WANG, X., & XIAO, Z. Regional eco-efficiency prediction with Support Vector Spatial Dynamic MIDAS. Journal of cleaner production, 2017, 161:165-177.

GORISSEN, L., VRANCKEN, K., & MANSHOVEN, S. Transition thinking and business model innovation–towards a transformative business model and a new role for Limburg, Belgium's reuse centers. Sustainability, 2017, 8(2):112.

BEBBINGTON, J. Engagement, education, and sustainability: a review essay on environmental accounting," Accounting, Auditing & Accountability Journal, 1997, 10(3): 365-381.

MOHAMMAD, N. Need to implement environmental accounting education for sustainable development: an overview. World Academy of Science, Engineering and Technology, 2012, 63: 900-907.

BOYD, J., & BANZHAF, S. What are ecosystem services? The need for standardized environmental accounting units. Ecological economics, 2007, 63(2-3), 616-626.

LARRINAGA-GONZALEZ, C. and BEBBINGTON, J. Accounting change or institutional appropriation? A case study of the implementation of environmental accounting. Critical Perspectives on Accounting, 2001, 12: 269-292

WHITE G. How to report a company's sustainability activities. Management Accounting Quarterly, 2005, 7(1): 36-43.

BISWAS, S., & O'GRADY, W. Using external environmental reporting to embed sustainability into organizational practices. Accounting Research Journal, 2016 29(2):218-235

PORTER, M. E., & VAN DER LINDE, C. Toward a new conception of the environment-competitiveness relationship. Journal of economic perspectives, 1995, 9(4), 97-118.

WEISS, J., STEPHAN, A., & ANISIMOVA, T. Well-designed environmental regulation and firm performance: Swedish evidence on the Porter hypothesis and the effect of regulatory time strategies. Journal of Environmental Planning and Management, 2019, 62(2), 342-363.

RAMANATHAN, R., HE, Q., BLACK, A., GHOBADIAN, A., & GALLEAR, D. Environmental regulations, innovation and firm performance: A revisit of the Porter hypothesis. Journal of Cleaner Production, 2017, 155: 79-92.

HACKSTON, D. and MILNE, M. J. Some determinants of social and environmental disclosures in New Zealand companies. Accounting, Auditing & Accountability Journal, 1996, 9(1): 77–108.

LIU, X., & ANBUMOZHI, V. Determinant factors of corporate environmental information disclosure: an empirical study of Chinese listed companies. Journal of Cleaner Production, 2009, 17(6): 593-600.

GIANNARAKIS, G., ANDRONIKIDIS, A., & SARIANNIDIS, N. Determinants of environmental disclosure: investigating new and conventional corporate governance characteristics. Annals of Operations Research, 2019, 294(1):1-19.

LOKUWADUGE, C. S. D. S., & HEENETIGALA, K. Integrating environmental, social and governance (ESG) disclosure for a sustainable development: An Australian study. Business Strategy and the Environment, 2017, 26(4): 438-450.

DE VILLIERS, C. and VAN STADEN, C.J. Can less environmental disclosure have a legitimizing effect? Evidence from Africa. Accounting, Organizations and Society, 2006, 31(8):763- 781.

DEEGAN, C. Introduction: the legitimizing effect of social and environmental disclosures theoretical foundation. Accounting, Auditing & Accountability Journal, 2002, 15(3):282– 311.

MONEVA, J., ARCHEL, P. and CORREA, C. GRI and the camouflaging of corporate unsustainability. Accounting Forum, 2006, 30: 121–137.

NEU, D., WARSAME, H. and PEDWELL, K. Managing public impressions: environmental disclosures in annual reports. Accounting, Organizations and Society, 1998, 23(3): 265- 282.

WALDEN, W.D. and SCHWARTZ, B.N. Environmental disclosures and public policy pressure. Journal of Accounting and Public Policy, 1997, 16(2):125-154.

D'AMICO, E., COLUCCIA, D., FONTANA, S., & SOLIMENE, S. Factors influencing corporate environmental disclosure. Business Strategy and the Environment, 2016, 25(3): 178-192.

FUENTE, J. A., GARCÍA-SANCHEZ, I. M., & LOZANO, M. B. The role of the board of directors in the adoption of GRI guidelines for the disclosure of CSR information. Journal of Cleaner Production, 2017, 141: 737-750.

PARKER, L. D. Social and environmental accountability research. Accounting, Auditing & Accountability Journal. 2005, 18: 842-860.

OWEN, D. Chronicles of wasted time? A personal reflection on the current state of, and future prospects for, social and environmental accounting research. Accounting, Auditing & Accountability Journal. 2008, 21(2):240-267.

ÁLVAREZ-GARCÍA, J., DEL RÍO, M. D. L. C., SARAIVA, M., & PIRES, A. R. The influence of motivations and barriers in the benefits. An empirical study of EMAS certified business in Spain. Journal of Cleaner Production, 2018, 185(1): 62-74.

LANGFIELD-SMITH, K. What do we know about Management Control Systems and Strategy? In: CHAPMAN C.S. (Ed.) Controlling Strategy: Management, Accounting and Performance Measurement. Oxford: Oxford University Press, 2005 (pp.62-85).

ABERNETHY, M. A., & CHUA, W. F. A field study of control system "redesign": the impact of institutional processes on strategic choice. Contemporary Accounting Research, 1996, 13(2): 569-606.

ALVESSON, M., KARREMAN, D. Interfaces of control. Technocratic and socio-ideological control in a global management consultancy firm. Accounting, Organizations and Society, 2004, 29: 423-444.

BAKER, M., BROWN, D. and MALMI, T. Implementing environmental strategy with an MCS package. School of Accounting Working Paper Series 78, School of Accounting. Sydney: UTS, April 2006.

BUTTERFIELD, E. Managerial decision-making and management accounting information. Master’s Degree Thesis. Helsinki: Helsinki Metropolia University of Applied Sciences, 2016.

BURNETT, R. D., & HANSEN, D. R. Eco-efficiency: Defining a role for environmental cost management. Accounting, organizations and society, 2008, 33(6): 551-581.

AVSEC, S., & KAUČIČ, B. (2018). Eco-efficient decision support model of solid waste recycling. Environmental Engineering & Management Journal (EEMJ), 17(5).

BEBBINGTON J. and GRAY R. An account of sustainability: failure, success and a reconceptualization, Critical Perspectives on Accounting, 2001, 12:557-587.

LEHMAN, G. Global accountability and sustainability: Research Prospects. Accounting Forum, 2002, 26(3-4): 219-232.

SCHALTEGGER S. and BURRITT R. Contemporary environmental accounting issues, concepts and practice. Sheffield: Greenleaf Publishing Limited, 2000.

GARZA-REYES, J. A., KUMAR, V., CHAIKITTISILP, S., & TAN, K. H. The effect of lean methods and tools on the environmental performance of manufacturing organizations. International Journal of Production Economics, 2018, 200:170-180.

GUENSTER, N., BAUER, R., DERWALL, J., & KOEDIJK, K. The economic value of corporate eco‐efficiency. European Financial Management, 2011, 17(4):679-704.

DE SIMONE, L. D. and POPOFF, F. Eco-efficiency: The business link to sustainable development. Cambridge, Massachusetts: MIT Press, 1997.

BURRITT R. L. Environmental management accounting: Roadblocks on the way to the green and pleasant land. Business Strategy and the Environment, 2004, 13:13-32.

AL-TUWAIJRI, A. S., CHRISTENSEN, T. E. and HUGHES, K. E. The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach. Accounting, Organizations and Society, 2004:29: 447–471.

MURTY, M. N. and KUMAR, S. Win–win opportunities and environmental regulation: testing of the porter hypothesis for Indian manufacturing industries. Journal of Environmental Management, 2003, 67:139-144.

GRAY, C. Absorptive capacity, knowledge management and innovation in entrepreneurial small firms. International Journal of Entrepreneurial Behavior & Research, 2006, 12(6).

THOMPSON P. and COWTON C. Bringing the environment into bank lending: implications for environmental reporting. The British Accounting Review, 2004, 36: 197-218.

WYCHERLEY I. Environmental managers and accounting. Journal of Applied Management Studies, 1997, 6(2): 169-176.

ADAMS, C. A. Internal organizational factors influencing corporate social and ethical reporting. Accounting, Auditing & Accountability Journal, 2002, 15(2):223-250.

DAFT R.L. New era of management. 2nd ed., Boston: Thomson South-Western, 2008.

HARTE, G., LEWIS, L. and OWEN, D. Ethical investment and the corporate reporting function. Critical Perspectives on Accounting, 1991, 2(3):227-253.

JOSHI, M. L., MARIN, O., CHARON, O., & DUGUE, J. U.S. Patent No. 6,241,514. Washington, DC: U.S. Patent and Trademark Office, 2001.

SUWARNO S., RAHMAWATI R., DJUMINAH D., MUTHMAINAH M., and KUNCARA W. A. Is Corporate Social Responsibility Disclosure Good for Accrual Profit and Real Manipulative Profit Managements? Journal of Southwest Jiaotong University, 2020, 55(2).


  • There are currently no refbacks.