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Waste Management & Research, Vol. 12, No. 5, 429-439 (1994)
DOI: 10.1177/0734242X9401200506

A Model for Environmental Costs for Corporations (Mec)

M.J. Diependaal

City of Rotterdam, Department of Environmental Policy, P.O. Box 6633, 3002 AP Rotterdam, The Netherlands

F.B. de Walle

Study Centre for Environmental Research, P.O. Box 6013, 2600 JA Delft, The Netherlands

Managing environmental issues and setting priorities requires an environmental costing procedure. The present study developed a "Model for Environmental Costs" (MEC) using five cost categories. The testing of the model in a furniture manufacturing plant showed that 35.2% of the total environmental costs were in effect mitigating correction costs, while 20.5% were prevention costs. Total environmental costs were 2.13% of the added value. The total amount of waste material amounted to 28% of the total material input. The MEC can be used as an internal management tool for priority setting and resource allocation, or for comparative analysis of industrial categories.

Key Words: Environmental pollution • waste management • cost analysis • environmental auditing • quality control • clean technologies • prevention.


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