Prof. D. Mukhopadhyay
As winter approaches, the specter of severe air pollution looms over Delhi-NCR and north Indian states, casting a shadow on the health and well-being of its residents. The hazardous air quality levels, primarily attributed to factors such as crop residue burning, industrial emissions, and vehicular pollution, pose a significant threat to public health. In this context, the application of Environmental Management Accounting (EMA) becomes even more critical, offering a robust framework for identifying and managing the costs associated with air pollution and its detrimental effects on community health. The pervasive issue of air pollution has become a critical concern, demanding innovative and effective solutions. Environmental Management Accounting (EMA) emerges as a potent tool in the arsenal of strategies aimed at mitigating the environmental impact of business operations. This literature focuses on effectiveness of EMA in the context of air pollution cost management, delving into its potential benefits and current awareness.EMA, when applied to the context of air pollution can provide a detailed account of the economic consequences linked to health hazards. The health hazard related costs of air pollution are multifaceted, encompassing medical expenses, lost productivity due to illness and an increased burden on healthcare infrastructure. By adopting EMA, businesses and policymakers gain insights into financial impact of poor air quality on public health.
One of the key effectivenesses of EMA is its ability to quantify the indirect costs that often go unnoticed. Beyond immediate healthcare expenditures, the long-term effects of air pollution such as chronic respiratory diseases and decreased life expectancy, contribute significantly to the economic burden. EMA allows for a comprehensive assessment of these indirect costs, guiding decision-makers towards strategies that not only mitigate environmental impact but also safeguard public health. Businesses can use EMA to analyze the emissions generated by their operations and implement measures to reduce their environmental footprint. This proactive approach not only aligns with sustainable business practices but also helps in managing the overall societal costs associated with air pollution-induced health hazards.Winter pollution is mostly characterized by the burning of crop residues and EMA is a powerful tool in identifying evaluating the air polution costs. By accounting for the environmental impact of agricultural practices leading to air pollution, EMA guides farmers, policymakers, and businesses toward more sustainable alternatives, minimizing the economic fallout of health-related issues.
To effectively leverage EMA for air pollution cost management towards health hazards , collaboration among governments, businesses, and communities is necessary to implement EMA practices, fostering transparency and accountability in the pursuit of cleaner air. Public awareness campaigns can educate citizens about the economic implications of air pollution on health, creating a collective sense of responsibility and urgency.The health hazard costs due to air pollution are substantial and multifaceted. Particularly Delhi-NCR and north India states face severe air quality issues during the winter months, primarily attributed to crop residue burning, industrial emissions, vehicular pollution, and construction activities.
The health hazard consequences of this air pollution are significant, leading to various direct and indirect costs exposure to the individuals and the governments. For instance, according to medical research, the most immediate health impact of air pollution is the rise in respiratory diseases such as asthma, bronchitis, and chronic obstructive pulmonary disease and these give exposure to direct costs such as medical expenses relating to hospitalizations, doctor visits, and medication and indirect costs exposure is associated with the loss of productivity due to absenteeism from work or school. Individuals with respiratory diseases may experience reduced work efficiency and an increased burden on the healthcare system. Again, according to medical research, air pollution is linked to an increased risk of cardiovascular diseases, including heart attacks and strokes which give rise direct costs exposure involving medical treatments, surgeries, and long-term medications and similar to respiratory diseases, the indirect costs include lost productivity and an increased demand for cardiovascular healthcare services. Further, premature mortality due to air pollution results in direct costs and associated bereavement costs. Again. the broader economic impact of premature mortality includes the loss of potential earnings and contributions to the economy, affecting both individuals and their families. Besides, the burden on healthcare infrastructure escalates due to the surge in hospital admissions and emergency room visits. This results in increased costs for maintaining and expanding healthcare facilities to accommodate the rising number of patients.
Further, Individuals suffering from the health effects of air pollution often experience a diminished quality of life, leading to direct costs associated with the pursuit of a higher standard of living, including expenses on amenities and leisure activities and the societal impact includes the collective reduction in the overall quality of life, affecting community well-being, social interactions, and mental health. Last but not the least, governments and individuals bear the direct costs of healthcare expenditure, including spending on medical treatments, medications, and preventive measures and simultaneously Indirect costs encompass the economic strain on households and governments, leading to potential trade-offs in budget allocations for other essential services.The health hazard costs due to air pollution extend beyond the immediate health impacts. They permeate various aspects of society, affecting individuals, families, and the broader community. Addressing these costs requires a comprehensive strategy that includes not only healthcare interventions but also proactive measures to reduce and mitigate the sources of air pollution in the region.
As Delhi-NCR and north Indian states face the challenges of winter pollution, EMA stands as a potent ally in the fight against the health hazards associated with poor air quality. Its capacity to quantify both direct and indirect costs provides a comprehensive understanding of the economic impact, guiding stakeholders towards informed decision-making. By integrating EMA into the region’s environmental management strategies, we can pave the way for a healthier, more sustainable future, where the true costs of air pollution are accounted for and addressed proactively.In the context of Delhi-NCR and north Indian states, winter pollution, particularly stems from crop residue burning and it becomes essential in measuring and evaluating costs incurred by various stakeholders. Collaboration among diverse stakeholders, including governments, businesses, and communities, is vital for the successful implementation of EMA practices.Addressing the multifaceted health hazard costs due to air pollution requires a comprehensive strategy, encompassing healthcare expenditure, societal impacts, and reduced quality of life. Despite its potential, EMA faces limited awareness, hindering its widespread adoption. To enhance its effectiveness, increased awareness, standardized guidelines, and collaboration among stakeholders are imperative.
EMA and the collaboration between government bodies and CMAs are essential for effective and economically viable solutions to address the challenges of air pollution, ensuring a cleaner and healthier environment in the long term.The government’s multifaceted role in mitigating health hazards associated with air pollution extends to regulatory frameworks, monitoring, awareness campaigns, and incentives for cleaner practices. Regulatory measures should include stringent standards for emissions from industries, vehicles, and other contributors to air pollution. This involves implementing monitoring mechanisms and penalties for non-compliance.Investment in robust air quality monitoring systems is crucial for gathering accurate and real-time pollution data, forming the basis for evidence-based policymaking and targeted interventions. Public awareness campaigns are necessary to educate citizens about the health risks of air pollution and encourage sustainable practices, clean energy use, and protective measures during periods of elevated pollution, such as smog or fog.Financial incentives, such as tax relief, subsidies, grants, and weighted depreciation on plants and machinery, can motivate industries and individuals to adopt cleaner technologies. Additionally, investing in research and development for innovative solutions to reduce air pollution, such as cleaner energy sources and pollution control technologies, is essential for long-term sustainability.
In the realm of cost and management accountants’ (CMAs) expertise, their role involves identifying, analyzing, and reporting health hazard costs associated with air pollution. This includes direct costs like healthcare expenses and indirect costs such as lost productivity. Through thorough cost analyses, CMAs provide a comprehensive view of the economic impact of poor air quality. CMAs can assist in integrating environmental considerations into financial management systems. This involves quantifying the environmental costs associated with air pollution and incorporating this information into decision-making processes. Collaboration with businesses and government agencies allows CMAs to identify cost-effective solutions for reducing pollution, assessing return on investment, and developing strategies to minimize overall environmental impact.
CMAs can offer valuable insights to policymakers by providing data-driven recommendations on the financial implications of different regulatory measures, striking a balance between environmental protection and economic considerations. Developing performance measurement metrics related to environmental sustainability, such as tracking emissions intensity and waste reduction, provides a basis for evaluating the effectiveness of pollution control initiatives. The collaborative efforts of the Central Government, Provincial Government , environmental scientists and CMAs are vital for creating effective and economically viable solutions for a cleaner and healthier environment. By addressing regulatory measures, awareness, incentives, and leveraging the expertise of CMAs, a permanent solution to the challenges of air pollution can be achieved. This collaborative approach can ensure a sustainable future for both the economy and the environment.
(The author is a Bangalore based
Educationist and Management Scientist)
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