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ISSN:2325-6192 (print)
ISSN:2325-6206 (online)
Journal of Environmental Accounting and Management
António Mendes Lopes (editor), Jiazhong Zhang(editor)
António Mendes Lopes (editor)

University of Porto, Portugal

Email: aml@fe.up.pt

Jiazhong Zhang (editor)

School of Energy and Power Engineering, Xi'an Jiaotong University, Xi'an, Shaanxi Province 710049, China

Fax: +86 29 82668723 Email: jzzhang@mail.xjtu.edu.cn

The Role of Recycling Strategies in Mitigating the Impact of Waste Externalities on Environmental Accounting Implementation

Journal of Environmental Accounting and Management 14(1) (2026) 47--60 | DOI:10.5890/JEAM.2026.03.005

Komang Adi Kurniawan Saputra$^{1}$, Putu Ayu Sita Laksmi$^{2}$, Noorliza MD. Noordin$^{3}$

$^{1}$ Master of Accounting, Faculty of Postgraduate, Warmadewa University, Denpasar-Bali, Indonesia, 80235

$^{2}$ Department of Management, Faculty of Economics and Business, Warmadewa University, Indonesia, 80235

$^{3}$ Department of Business, Faculty of Business and Accounting, Mahsa University, Malaysia

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Abstract

This study aims to analyze the impact of waste externalities on the implementation of environmental accounting and explore the mediating role of recycling strategies in this relationship. The research seeks to provide insights into how recycling can bridge the gap between waste management challenges and environmental accountability. A correlational research design was employed, with data collected through surveys from 150 companies in Bali's tourism and manufacturing sectors. The study used regression analysis and the Sobel test to examine the relationships between waste externalities, recycling strategies, and environmental accounting implementation. The findings revealed a significant negative correlation between waste externalities and environmental accounting implementation, indicating that higher externality challenges reduce accounting practices. Companies adopting recycling strategies demonstrated better environmental accounting practices, suggesting that recycling enhances awareness and accountability. The study concludes that while waste externalities hinder environmental accounting, recycling strategies effectively mitigate these challenges by promoting sustainable practices. Businesses are encouraged to integrate recycling into their operations to improve environmental accountability. The findings also underscore the need for government policies to support sustainable waste management and stakeholder engagement. Future research should explore additional factors influencing these relationships across different regions and industries.

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