Abstract:

Since the environment is a production input for the business and business activities affect the environment, the business and the environment are in constant interaction. Ensuring continuity of the business, achieving success and developing environmental awareness requires protection of the environment. The costs of environmental practices for protection of the environment constitute environmental costs. Each cost endured will affect the business positively or negatively. The aim of the study is to determine the effect of environmental costs realized to protect the environment in terms of production cost and competitiveness on the business. This effect has been tried to determine on 285 green star hotels using a survey method. Factor analysis and Structural Equation Model (SEM) were used in the analysis of data. As a result of the analysis, it was determined that the costs related to use of environmental resources and to prevent or reduce damage to the environment positively affect production cost and competitiveness, and the costs caused by damage to the environment negatively affect production cost and competitiveness. These findings are important since it determines the impact of environmental costs on the business and will create awareness for companies and encourage them to move towards environmental practices.

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