Comparison of Material Flow Cost Accounting Research in Japan and China

Abstract

This paper compares native-language publications of studies in environmental accounting (EA), environmental management accounting (EMA), and material flow cost accounting (MFCA) in Japan and China. It documents the number of published studies spanning approximately from 1970 to 2018, explains the principles and computational characteristics of MFCA, and compares the content of MFCA studies in both countries. Comparison shows that China has published more studies of EA and EMA than Japan, whereas Japan has published more studies related to MFCA. However, the number of MFCA studies declined in Japan but increased in China during the period studied. We conclude that MFCA research has a sustainable space in China. We are concerned about MFCA’s research trends in Japan and China because MFCA is a key tool of EMA, and research from Japan indicates that MFCA promotes environmental and economic benefits. This study provides a reference for Chinese businesses hoping to use MFCA to protect the environment and cut costs.