Using modified value multiplier to measure the effectiveness of carbon emission relative activities

Abstract

Based on the analysis of the relationship between activity cost and value creation, this paper integrates carbon emission factors into Activity Value Multiplier (AVM) model. By calculating the multiplier AVM, the modified AVM model can measure the efficiency and effectiveness of carbon emission activities, and help companies to recognize the structure of consumer value and identify the directions of carbon emission reduction. A discussion about four significant carbon emission relative activities in company is put forward to illustrating how modified AVM works and helps firms make decisions. Finally the conclusion is drawn.