Measuring Environmental Costs Using Modern Management Accounting Techniques and Their Impact on Improving Competitive Advantage: An Applied Study of a Cement Plant in Iraq

The proposed study attempts to quantify the environmental costs in a cement plant in Iraq and also to examine how the systematic identification and quantification of the environmental costs can be used to enhance the competitive advantage of the plant. The given research assumes the application of an applied case study methodology that includes two years of operations (2022 and 2023) and is based on environmental cost measurement instruments (material and energy flow tracking) and connects them with outputs, losses, and emissions during production. Measurement outcomes are then correlated to measurable competitive factors such as cost per ton, environmental cost per ton, waste ratio, power efficiency and environmental compliance. The information sources include accounting and production records and technical reports and is discussed through the trend analysis, benchmarking comparisons, and relationship analysis, provided that there is an adequate amount of quantitative data available.
The results show that the closure of the raw material mill precipitator contributes to high levels of environmental effects and other environmental expenses due to the presence of a number of shutdown hours per year. Though the proportion of the costs is relatively low in comparison with the total costs, these costs indicate an environmental gap that could be overcome and managed. The fact that there are no environmental fines and compensations due to environmental damages at the Badoush New Cement Plant means that the plant conforms to the environmental requirements and standards, thus giving it a competitive edge based on its reputation and willingness to do anything to protect the environment and the society.
The most significant of the study recommendations include that the plant management must minimize waste, efficiency of resources and regulatory risks in a way that would improve its competitiveness, and must allocate resources towards afforestation and the green spaces of the areas surrounding the plant to help the production processes to reduce their harmful effects on the environment.