Environmental Cost Expansion Research Based On MFCA

With the acceleration of industrialization,urbanization and the continuous upgrading of consumption structure,our energy demand has grown rigidly.Environmental issue is still one of the bottlenecks restricting Chinese economic and social development.The task of energy conservation and emission reduction are still arduous.The power industry is an energy production and conversion industry.It is one of the most important basic resource-intensive industry.Thermal power generation is a traditional power generation method and an important part of power industry.According to the statistics of the State Environmental Protection Administration,thermal power enterprises account for about 70% of Chinese total output of nitrogen oxides,more than 60% of the total emissions of sulfur dioxide,and more than 30% of the total emissions of soot.Therefore,it is extremely urgent to reduce the pollution of thermal power generation enterprises.Based on reading related domestic and foreign literatures,this paper summarizes the commonalities and shortcomings of current environmental cost related research,then proposes to use the most promising environmental management tool-Material flow cost accounting(MFCA).Considering the short-sighted information provided by existing MFCA and its narrow accounting boundaries,expansion research of environmental cost based on MFCA is carried out—Inward enterprises,deepen the decision making method on environmental protection investment;outward enterprises,extend external supply chain collaboration.Therefore,the possible innovations of this paper are proposed:(1)Establishing an environmental protection investment project evaluation process based on MFCA,and adding the environmental damage value which is often neglected in practice when using Net Present Value evaluation method.The environmental damage value is used to measure the overall economic value of the environmental protection investment project,which can support enterprises to correctly make long-term environmental protection investment decisions;(2)Trying to establish a supply chain collaboration model based on MFCA.Through sharing and communicating appropriate resource flow and carbon footprint information,supply chain enterprises will effectively improve the overall level of energy saving and emission reduction.Subsequently,HX Company was applied to verify the practicality of the extended MFCA,finding out the key improvement nodes of HX Company,then use the extended MFCA to solve these problems.It is recommended that HX Company improve environmental cost accounting system,increase environmental protection and R&D investment and strengthen corporate awareness of environmental control.At the end of this paper,the conclusions are sorted out and policy recommendations are put forward.It is hoped that relevant government departments can improve the environmental accounting system and the sewage charging system,implement the preferential support policy and guide the coordinated development of the power industry.Through these guiding policies,we will lead enterprises to take the initiative,actively participating in the construction of an environment-friendly society,and finally realizing the sustainable development of the whole nation.