Environmental costing of electricity consumption in Hong Kong Hotel Industry

Abstract

This paper investigated the environmental cost attributable to electricity consumption in hotel industry and accommodation operations. Abatement cost approach plus a prorated model were used in the environmental costing. The study surveyed 20 hotels on the energy consumption in 1994?1996 and conducted 3 case studies on the in?room electrical requirements. Results indicate that green costs, per occupied room basis, attributable to electricity consumption in hotel range from HK$4.52 to HK$9.05. For room operations only, the green cost relating to the electricity consumption per occupied room was HK$3.31 to HK$3.62. Implications for green reporting at property level and industry level are discussed, and recommendations are made for future research.