Various organization has come up with different definition of the term environmental cost. So there is no definitive answer to question “what is meant by environmental costs? In most cases the term is taken to mean any cost that have relevance to the environment.
The following are perhaps the most significant environmental costs:
- Image and relationship costs. The environment is important political issue. Many organization that has committed environment crimes have suffered as result of product boycott, which have affected their profits. many organization spend huge amount of money to publicize their environmental credentials.
- Cost of waste, particularly wasting scarce resources, such as energy and water.
- Cost of compliance with environmental regulations or voluntary codes. These cost may include cost of employing compliance officer and monitoring equipment.
- Cost incurred to protect the environment such as investing in production process to reduce pollution.
- Cost of cleaning up pollution or contamination caused by organization activities.