Internalization of Environmental Costs as a Tool for Environmental Management in Organizations

Abstract

This paper aims to describe and analyze the evolution, trends and prospects for the internalization of negative environmental impacts in organizations. The evolution of environmental management is explored, starting from the use of impact internalization instruments based on Coase and Pigou’s approach and its impact on the management and competitiveness results. An analysis is made of the methodological trends in environmental costs, economic valuation and internalization instruments, eventually establishing the main advantages and disadvantages of each and determining the degree of importance in decision-making and environmental management strategies.