Issues and major steps in a conceptual framework for environmental costing

The concept of applying monetary values to environmental consequences as a means of integrating environmental considerations into utility resource planning is explored. The need for estimation and integration of environmental costs and benefits is becoming more important due to public concern over environmental degradation, rapidly increasing costs of mitigating environmental damage, increased liability for compensation for such damage, pressures to consider environmental externalities, and a corporate desire to operate responsibly. Manitoba Hydro established a task force to develop general approaches and specific techniques for evaluation and integration of environmental costs and benefits into utility planning. The utility's conceptual framework for monetizing and integrating environmental costs and benefits is described, including identification of potential environmental impacts, evaluation of environmental impacts, estimation of monetary and non-monetary costs and benefits, and integration of these costs and benefits into the resource planning process. Key issues that must be addressed to implement this conceptual framework include the need for earlier environmental impact assessments and the need for mitigation and compensation prediction methodologies. 1 fig., 1 tab