Environmental Accounting Practices and Environmental Capacity for Sustainable Economy

Abstract

This study investigated the relationshipbetween environmental accounting practices and environmental capacity for sustainable economy in Nigeria. The environment provides resources with which companies operate. The question is how is the environment taken care of, to continue to serve these companies into a foreseeable future? The study dwelt on disclosure of environmental cost information, contribution of companies to salvage the environment for sustainable economy and collaboration between companies and regulatory agencies to improve the environment. In order to achieve the objectives of the study, a survey research was carried out. Data was collected from twenty two (22) companies in production business in Nigeria. The study was descriptive in nature. The findings were discussed from answers to questionnaire. A linear regression model was used to provide findings for the study. The findings revealed that there was a significant relationship between environmental accounting practices and environmental capacity for a sustainable economy in Nigeria (F-statistics-0.000; Adjusted R 2-0.911); there was a significant consequence on non-compliance by companies (F-statistics-0.012, Adjusted R 2-0.506). The study recommended effective collaboration among organizations to improve the environment for a sustainable economy; companies should adopt preparation of environmental profit and loss account; companies should provide for environmental cost in their annual budget which is different from corporate sustainability; Companies in Nigeria should adopt Global reporting initiative and companies should plan towards zero emissions.