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Putting carbon markets into practice: a case study of financial accounting in Europe
Citation
Lovell, HC and Bebbington, J and Larrinaga, C and Sales de Aguiar, TR, Putting carbon markets into practice: a case study of financial accounting in Europe, Environment and Planning C: Government and Policy, 31, (4) pp. 741-757. ISSN 0263-774X (2013) [Refereed Article]
Copyright Statement
Copyright 2013 Pion
DOI: doi:10.1068/c1275
Abstract
In this paper we explore how carbon markets have entered the world of financial accounting. The advent of the European Union Emissions Trading System (EU ETS) in 2005 provided the opportunity for global climate change concerns to be translated from policy into something that could, and should, be recognised within financial accounting. That is, the EU ETS provided a mechanism whereby greenhouse gas emission allowances acquired a financial value, simultaneously creating an obligation (or liability) on certain European organisations when they emit greenhouse gases. Prima facie, this process created the need for financial accounts of companies covered by the EU ETS to reflect the new commodity of carbon. Disagreement amongst accountants about how to treat emission allowances has arisen, with the initial international accounting guidance issued in late 2004 subsequently being withdrawn, and not yet replaced. Taking this absence of guidance as a starting point, we undertake an empirical project (through a survey, consultation analysis, and interviews) to establish what financial reporting practices are being adopted by participants in the EU ETS, and the level of momentum for standardisation. We draw on sociological theories about accounting, measurement, and markets. © 2013 Pion and its Licensors.
Item Details
Item Type: | Refereed Article |
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Research Division: | Human Society |
Research Group: | Sociology |
Research Field: | Sociology and social studies of science and technology |
Objective Division: | Expanding Knowledge |
Objective Group: | Expanding knowledge |
Objective Field: | Expanding knowledge in human society |
UTAS Author: | Lovell, HC (Professor Heather Lovell) |
ID Code: | 99567 |
Year Published: | 2013 |
Web of Science® Times Cited: | 16 |
Deposited By: | School of Social Sciences |
Deposited On: | 2015-03-27 |
Last Modified: | 2017-11-14 |
Downloads: | 0 |
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