Abstract:

Climate change is a complex phenomenon and a serious challenge but the role of accounting for global warming is not made clear. The paper proposes a broad concept of carbon accounting which refers to a system that uses accounting methods to record and analyse climate change information, and account and report for carbon related assets, liabilities, expenses and income for the decision-making of users. In addition, the paper adopts a holistic approach to describe the inter-related functions of components of carbon accounting system and shows how it can play a role for the construction of carbon management systems and how carbon accounting information may be used for evaluation of energy efficiency, carbon productivity and disclosure of carbon reduction activities. Carbon accounting is conceived of multi- dimension subject and we need innovative and creative approaches to develop carbon accounting framework, methodology and workable programs. Carbon accounting should be built based on knowledge and techniques from all aspects of accounting, including financial and management accounting and auditing. Finally, the paper concludes that carbon accounting is in its early stage and elaborates future research opportunities.

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