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Published in:
2008 | OriginalPaper | Chapter
An Empirical Examination of the Role of Environmental Accounting Information in Environmental Investment Decision-Making
Authors : Tapan K. Sarker, Roger L. Burritt
Published in: Environmental Management Accounting for Cleaner Production
Publisher: Springer Netherlands
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An experiment is used to investigate two important factors associated with environmental investment decision-making by managers: the regulatory regime in which the firm operates and the nature of environmental information used as a decision aid. Two regulatory regimes are examined, a command and control regulatory regime and a voluntary self-regulatory regime. Two accounting systems are contrasted, environmental management accounting and conventional management accounting, thereby providing a 2 × 2 experimental design for the empirical study. The paper considers environmental investment decision-making by different types of managers working in the Australian offshore petroleum industry. These empirical results indicate that environmental accounting information has a more significant influence on the willingness of managers to incorporate environmental considerations into investment decisions and to avoid future environmental risks, than does the type of regulatory regime.