Information Disclosure as Environmental Regulation: A Theoretical Analysis View Full Text


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Article Info

DATE

2007-07

AUTHORS

Mark A. Cohen, V. Santhakumar

ABSTRACT

Governments around the world are beginning to embrace a new form of environmental regulation – mandatory disclosure of information. While information disclosure programs appear to have an impact on subsequent firm behavior – often resulting in lower levels of pollution – little is known about the costs and benefits of these programs and whether or not they enhance social welfare. This paper presents a simple bargaining model where mandatory information disclosure is used to overcome a lack of information on the part of the public. We characterize the conditions under which information disclosure will lead to a reduction in emissions, and ultimately, the conditions under which it will enhance social welfare. Several extensions of the model are briefly explored, including the effect of two sources of pollution – only one of which is subject to information disclosure. More... »

PAGES

599-620

References to SciGraph publications

  • 2006-08. Information regulation: Do the victims of externalities pay attention? in JOURNAL OF REGULATORY ECONOMICS
  • 1998-04. Disclosure Strategies for Pollution Control in ENVIRONMENTAL AND RESOURCE ECONOMICS
  • Identifiers

    URI

    http://scigraph.springernature.com/pub.10.1007/s10640-006-9052-9

    DOI

    http://dx.doi.org/10.1007/s10640-006-9052-9

    DIMENSIONS

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