A MODEL FOR ENVIRONMENTAL COSTS FOR CORPORATIONS (MEC)

Managing environmental issues and setting priorities requires an envir onmental costing procedure. The present study developed a ''Model for Environmental Costs'' (MEC) using five cost categories. The testing of the model in a furniture manufacturing plant showed that 35.2% of the total environmental costs were in effect mitigating correction costs, while 20.5% were prevention costs. Total environmental costs were 2.1 3% of the added value. The total amount of waste material amounted to 28% of the total material input. The MEC can be used as an internal ma nagement tool for priority setting and resource allocation, or for com parative analysis of industrial categories.