Energy Accounting and Sustainability: Analysis of Energy Performance in a Manufacturing Company

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 6

Year of Publication : 2020

Authors : Omer Kavrar

10.14445/23939125/IJEMS-V7I6P112

How to Cite?

Omer Kavrar, "Energy Accounting and Sustainability: Analysis of Energy Performance in a Manufacturing Company," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 6, pp. 76-84, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I6P112

Abstract:

For manufacturing companies, one way to gain an advantage over competitors is to reduce product costs and thus improve financial efficiency. Considering its rising prices, energy is one of the key factors in reducing operating costs. Introducing energy accounting to a manufacturing company provides a high level of energy awareness. This paper describes the concept and stages of energy accounting and discusses the role of the accounting information system in energy and sustainability analysis in particular. Through the functions of accounting information systems, energy-related issues come increasingly into view of top management. Abnormalities in energy consumption can be detected to evaluate energy-saving opportunities by simply applying energy performance indicators to the plant or its units where detailed information is needed. The study employs accounting techniques that include energy performance analyses, which make energy efficiency gaps clear and visible. Thus, businesses can develop effective and rational strategies to improve their competitive position in the long term by developing an energy-focused perspective. It also plays an important role to draw attention to the high correlation between consumed fossil energy sources and environmental pollution.

Keywords:

Energy Accounting, Energy Management, Energy Performance Indicators, Sustainability.

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