Environmental performance evaluation of enterprises using internal resource loss and external environmental damage costs

Caiping Zhang, Ning Yu, Xiangxiang Yin and Timothy O. Randhir

Journal of Environmental Planning and Management, 2021, vol. 64, issue 6, 1089-1110

Abstract: Environmental performance evaluation is an essential part of environmental management—however, current methods of environmental performance overlook efficiencies in individual operational processes. Environmental pollutant waste not only causes internal resource loss but also leads to external environmental damage through emissions and generation of other byproducts, and these dual factors are critical in environmental performance evaluation. This paper develops an “Internal Loss-External Damage” (ILED) environmental performance evaluation method. This two-dimensional method is applied to a coal-fired plant's environmental performance evaluation to demonstrate that the ILED method can identify key environmental pollution impact factors and quantify internal resource loss costs and environmental damage costs. Results show that combustion is a priority process for cost reduction efforts. This assessment will be helpful for enterprises seeking to improve environmental management effectiveness and reduce environmental pollution risk. Also, this performance evaluation provides a new perspective on environmental management and enriches the theoretical framework for environmental management.

Date: 2021
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DOI: 10.1080/09640568.2020.1802238

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