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International Journal of Environment and Sustainability, 2016, 5(2): 61-71 65
the decrease of carbon emissions before and af- cover every CO2 change (as the effect of green-
ter the issuance of government policy related to house gas). The awareness on global climate
the environment. change becomes the motivation of this research.
Nine websites are used in this study to identify
Recognition and accountancy recording to re- greenhouse gas turning into savannah in some
spond carbon emission produced by the com- types of European countries. This research as-
pany, until today, have not had any agreement sumes the importance of the greenhouse gas ef-
between country (Neumayer, 2000; Cook, 2009; fect balance by including all ecosystem effects on
and Hopwood, 2009), even in European coun- the atmosphere into atmosphere budgeting. This
tries that prioritize environmental issues. Now, similarity is then called full accounting. This
accountancy must be involved in environmental study does not explain the concept of account-
problems. The International Accounting Stand- ancy further, including how the record must be
ard Board (IASB) continues to conduct discus- done to admit carbon emission cost.
sions about accountancy for carbon emissions
(Cook, 2009). This argument and discussion cen- On the other side, Neumayer (2000) proposed
ters around problems of conceptual and tech- the term historical accountability, which used to
nical issues. Hopwood (2009) discussed some be known as “natural debt” (introduced by
ways of addressing problems in accountancy and Grübler and Fujii (1991) and Smith (1991) in
mechanisms of other calculation related to envi- Neumayer, 2000), as the concept used to count
ronmental problems. Hopwood focused his emissions allocation of certain years over some
study on the importance of accountancy record- periods of the following years. The idea is to use
ing on carbon emissions and a corporate social historical accountability so that the country
responsibility report. However, this study did which is in the previous year has exceeded the
not clearly show any costs that have to be con- level of carbon emission has to put effort to re-
sidered related to carbon emissions. duce its carbon emission in the next years. In
other words, the concept of historical accounta-
In this study, it is explained that the European bility that will determine the size of Historical
Emission Trading Scheme (Emission Trading Emission Debt (HED) always compares to the ef-
Scheme in European Countries) has to consider fect of greenhouse gas produced by each country
opportunity cost. Some countries under the Eu- time to time. Furthermore, the country that has
ropean scheme have a tendency to allocate emis- positive HED must compensate the country that
sions in different accountancy. However, a study has a negative HED. From here, carbon emission
centered in Germany and The Netherlands (Sijm trading is eventually appearing. Historical ac-
et al., 2006 in Hopwood 2009) found price pat- countability does not mean delegating mistakes
terns that are consistent with the merge of op- of past generations to present generations, ra-
portunity cost included into price. In addition, ther it is more about how all human beings are
even though other research (IETA – Interna- able to use the environment together, free from
tional Emission Trading, 2007) found variations health threats. The hypothesis formulated from
in accountancy for emissions in an external re- the explanation above is:
port of a European company, the result of this re-
search seems to prove that accountancy record- H2: There is a significant relationship between
ing related to carbon emissions has not been the amount of R & D cost allocation for reducing
even, especially in European countries. carbon emissions after the issuance of govern-
ment policy related to the environment.
Some researchers who try to offer formulation to
calculate fund allocation related to the effect of 2.1.2 There is a positive relationship between
greenhouse gas are Neumayer, 2000 and Sous- the amount of R&D cost allocation related to
sana et al. 2007. Joint research done by 28 re- reducing energy and similar activities to-
searchers from 13 universities in Europe initi- wards environmental disclosure level.
ated by Soussana and Allard (Soussana et al.,
2007) has created a means for making formula- Fisher-Vanden and Wing (2007) conducted a
tions to determine the size of a budget that can study to show accountancy numbers relate to
qualified products. The study conducted by
Science Target Inc. www.sciencetarget.com
