EMA can be used for sound investment project decision making as it allows
for better assessment of the economic impacts of the environmental
performance of the business. Therefore, EMA should have a strategic role in
policy and planning. De Palma and Csutora (2001, p. 37) shows that managers
seem to immediately recognize the benefits of using EMA as a very useful tool
for justifying environmental projects within the company and that their bargaining
power increased significantly with their capability of showing the economic
significance of environmental costs compared to total production costs.
Moreover, this study showed first that the allocation of environmental costs to
concrete production steps allowed for the identification of portion environmental
costs that could be reduced by implementing a cleaner production option. And
secondly, the study identified the portion of the environmental costs that could be
avoided if significant investments in BATs were undertaken. On the same line,
the study of Sarker and Burritt (2008, p. 473) regarding the offshore petroleum
industry in Australia, argues that the information provided by environmental
accounting has a significant influence on the investment decisions of managers.