Implementing Water Accounting in a Developing Economy: Barriers and Insights from Iran

Articles in Press

Document Type : Original Article

Authors

• Mohammad Nazaripour ¹
• Jafar Babazadeh Hashin ²

¹ Accounting Department, Hazrat-e Masoumeh University, Qom, Iran

² Department of Accounting, University of Kurdistan, Sanandaj, Iran

10.22067/ijaaf.2025.92870.1550

Abstract

All industrial activities require water for production or to support manufacturing processes. Due to severe water scarcity, Iranian manufacturing companies face significant challenges in managing water resources. This study examines the barriers to adopting water accounting in Iran’s manufacturing sector amid its critical water crisis. It proposes a novel six-factor framework, including technical/infrastructure, regulatory/policy, human capital, cultural/organizational, economic/financial, and external environmental barriers. Employing a descriptive-survey approach, the study analyzed data from 170 accountants using exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM) with SPSS 26 and Amos 24. The findings identify technical/infrastructure barriers as the most significant, followed by regulatory gaps, with all factors demonstrating interconnected impacts. This research provides a context-specific framework, addressing a gap in the under-researched Iranian manufacturing sector, and offers practical recommendations for sustainable water management. By comprehensively analyzing these barriers, the study delivers valuable insights into systemic challenges faced by Iranian manufacturing firms and proposes targeted strategies to advance sustainable water management practices.

Keywords

• Water Accounting
• Manufacturing Sector
• Sustainable Water Management
• Iranian Industry
• Barriers to Implementation

Main Subjects

• Accounting

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