Carbon Cost Accounting And Its Application In The Steel Industry

The improvement of technology has provided a powerful driving force on our society; however it leads to a variety of environmental pollution problems which have gradually deepened at the same time. With the rapid development of China’s market economy, the emission of carbon dioxide has become an element of our strategy for sustainable development which cannot be ignored. In this paper, a carbon accounting system was proposed for steel enterprise as a of low-carbon economy background. On the basis of the definition of the steel companies’ carbon cost, combined with the steel production process, material flow and energy flow analysis are considered to analysis carbon cost; it is a useful exploration for steel companies’ carbon performance evaluation.This article uses the integrated research methods, using economic, environmental and engineering disciplines to research "flow" analysis to calculate the carbon emissions and evaluate the external costs caused by damage to the environment in steel companies. Based on the studies of environmental cost accounting, this article tries to recognize the carbon emission cost and use the total cost of the optimal curve to analysis the minimum total cost of carbon emissions. After literature review, this paper points out the shortcomings of the current accounting and evaluation, combined with the lack of relevance in terms of carbon emissions in the iron and steel enterprises costing and evaluation gives an improved method and specific improvements measures. Besides, case study method is used to prove feasibility of the carbon cost accounting method which is proposed in the article, which can be a valuable reference in cooperate practice.There are two main purposes in this article. On the one hand, this paper uses the unit process "flow" theory, and traditional cost accounting method to calculate the cost of steel enterprise’ carbon cost and use the optimization models to analyze and evaluate the results to help managers make carbon related decisions. On the other hand, for the case of a domestic iron and steel enterprises, putting the carbon emissions costing and evaluation method proposed in this paper among the examples used in iron and steel enterprises not only prove that this method can be used in practice but also the feasibility of this research. This paper follows the course of the study questions, analyze and solve problems of law and with the case of using a combination of research ideas, give conclusions and recommendations finally.The main deficiency of this article is my limited scope of the study, and there maybe imperfections in this paper. The calculation method is relatively difficult for accountants to understand. Financial officers may need engineers’assistance in the use of this method.