Carbon emission risks and management accounting: Australian evidence

Kumarasiri, J and Jubb, C 2016, 'Carbon emission risks and management accounting: Australian evidence', Accounting Research Journal, vol. 29, no. 2, pp. 137-153.


Document type: Journal Article
Collection: Journal Articles

Title Carbon emission risks and management accounting: Australian evidence
Author(s) Kumarasiri, J
Jubb, C
Year 2016
Journal name Accounting Research Journal
Volume number 29
Issue number 2
Start page 137
End page 153
Total pages 17
Publisher Emerald Publishing Limited
Abstract Purpose - The purpose of this paper is to apply regulatory mix theory as a framework for investigating the use of management accounting techniques by Australian large listed companies in constraining their carbon emissions. Design/methodology/approach - Semi-structured interviews are conducted with senior managers involved with managing their companies' carbon emission risks. Analysis of the interview data is undertaken with a view to provision of insight to the impact of the regulatory framework imposed to deal with carbon emissions. Findings - The findings reveal that regulation impacting companies' economic interests rather than requiring mere disclosure compliance is much more likely to be behind focusing top management and board attention and use of management accounting techniques to set targets, measure performance and incentivise emission mitigation. However, there remains much scope for increased use of accounting professionals and accounting techniques in working towards a carbon-constrained economy. Research limitations/implications - The usual limitations associated with interpretation of interview data are applicable. Practical implications - Under-use of management accounting techniques is likely to be associated with less than optimal constraint of carbon emissions. Social implications - Carbon emissions are accepted as being involved in harmful climate change. To the extent effective techniques are under-utilised in constraining emissions, harmful consequences for society are likely to be heightened unnecessarily. Originality/value - The topic and data collected are original and provide valuable insights into the dynamics of management accounting technique use in managing carbon emissions.
Subject Accounting, Auditing and Accountability not elsewhere classified
Keyword(s) Carbon emissions management
Climate change issues
Management accounting techniques
Regulatory pressure
DOI - identifier 10.1108/ARJ-03-2015-0040
Copyright notice © Emerald Group Publishing Limited.
ISSN 1030-9616
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