Why green accounting is necessary for the government and business?

Abstract

Nowadays governments and businesses seek to be socially responsible. One of the socially responsible areas is environmental issues. In order to assess changes in environmental activities, governments and businesses need to keep environmental accounting, which is often named as green accounting. Therefore, the aim of the research is to identify the advantages of green accounting for governments and businesses. To achieve the aim of the research, precisely, to reveal the similarities and differences of traditional and green accounting and disclose the methods and the significance of green accounting for governments and businesses, scientific literature analysis, synthesis, systematisation, and comparison were applied It has been identified that businesses can use financial resources more efficiently and contribute to the reduction of environmentally harmful activities in a long-term strategy if they integrate green accounting into the traditional accounting system and make the analysis and control of the green accounting data. According to the green accounting data of various businesses, the government could also make various analyses at the national level. Accumulated data and their analysis would ensure timely and appropriate government decisions on environmental issues.