| Title | Material flow cost accounting (MFCA) for the circular economy: An empirical study of the triadic relationship between MFCA, environmental performance, and the economic performance of Japanese companies |
|---|---|
| ID_Doc | 4092 |
| Authors | Nishitani, K; Kokubu, K; Wu, Q; Kitada, H; Guenther, E; Guenther, T |
| Title | Material flow cost accounting (MFCA) for the circular economy: An empirical study of the triadic relationship between MFCA, environmental performance, and the economic performance of Japanese companies |
| Year | 2022 |
| Published | |
| Abstract | The purpose of this study is to address the question of whether material flow cost accounting (MFCA) can contribute to the circular economy. Because MFCA is an environmental management accounting tool that simultaneously assesses company material and financial flows, it is expected to contribute to the circular economy by assisting companies to achieve both environmental and economic goals through resource efficiency. In short, the expected linkages between MFCA, company environmental and economic goals, and the circular economy are inputs, outputs, and outcomes. However, there is a lack of consensus regarding its potential, perhaps because of the scarcity of studies, with most being models and case studies without readily generalizable results. To address this gap, we analyze the triadic relationship between MFCA, environmental performance, and economic performance using a two-stage regression of data from Japanese listed companies. The main findings are as follows. Companies that implement MFCA more proactively are more likely to improve their environmental performance in terms of energy consumption, CO2 emissions, and waste produced. In turn, those that improve their environmental performance are also more likely to improve their productivity, while those that specifically improve environmental performance in terms of waste produced are also more likely to increase in profitability. Consequently, because MFCA can improve several aspects of environmental performance by saving resources, it can improve productivity by improving a range of environmental performance indicators. In particular, MFCA can improve company productivity and thereby profit, at least by reducing the amount of waste produced. This supports the view that MFCA is an effective tool to contribute to the circular economy. |
| http://manuscript.elsevier.com/S0301479721022817/pdf/S0301479721022817.pdf |
Similar Articles
| ID | Score | Article |
|---|---|---|
1778
|
Llena-Macarulla, F; Moneva, JM; Aranda-Usón, A; Scarpellini, S Reporting measurements or measuring for reporting? Internal measure- ment of the Circular Economy from an environmental accounting approach and its relationship(2023)Revista De Contabilidad-Spanish Accounting Review, 26, 2 | |
| 4618
|
Pan, X; Wong, CWY; Wong, CY; Boon-itt, S; Li, CS The influences of circular economy practices on manufacturing firm's performance: A meta-analytic structural equation modeling study(2024) | |
| 2136
|
Aranda-Usón, A; Scarpellini, S; Moneva, JM Dynamic capabilities for a "circular accounting" and material flows in a circular economy(2024) | |
| 1673
|
Yu, YB; Xu, JW; Zhang, JZ; Wu, Y; Liao, ZJ Do circular economy practices matter for financial growth? An empirical study in China(2022) | |
| 4126
|
Zhou, ZF; Zhao, WT; Chen, XH; Zeng, HX MFCA extension from a circular economy perspective: Model modifications and case study(2017) | |
| 1081
|
Romia, P; Angel, M The Importance Of Waste Accounting In The Circular Economy: The Mcfa Method(2023)Cuadernos Del Cimbage, 25, 2 | |
| 574
|
Chen, PY; Dagestani, A What lies about circular economy practices and performance? Fresh insights from China(2023) | |
| 1009
|
Bin Amin, M; Asaduzzaman, M; Debnath, GC; Rahaman, MA; Olah, J Effects of circular economy practices on sustainable firm performance of green garments(2024)Oeconomia Copernicana, 15, 2 | |
| 1699
|
Sarfraz, M; Ivascu, L; Artene, AE; Bobitan, N; Dumitrescu, D; Bogdan, O; Burca, V The relationship between firms' financial performance and performance measures of circular economy sustainability: an investigation of the G7 countries(2022) | |
| 2249
|
Di Vaio, A; Hasan, S; Palladino, R; Hassan, R The transition towards circular economy and waste within accounting and accountability models: a systematic literature review and conceptual framework(2023)Environment Development And Sustainability, 25, 1 |