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Information Disclosure Policies: When Do They Bring Environmental Improvements?

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  • Toshihiro Uchida

Abstract

There has been a growing interest among policy makers on the use of information disclosure policies for pollution control. This paper theoretically assesses the consequences of information disclosure policies and identifies the conditions under which such policies are likely to bring environmental improvements. Based on a dynamic game framework, the paper shows that both eco-labeling and more general full information disclosure policies may not always result in pollution reduction. Full information disclosure policies are likely to be effective if the product is not heavily polluting and if the minimum quality standard is set quite low. The paper also identifies the conditions under which all consumers are strictly better off with information disclosure policies. Copyright International Atlantic Economic Society 2007

Suggested Citation

  • Toshihiro Uchida, 2007. "Information Disclosure Policies: When Do They Bring Environmental Improvements?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 13(1), pages 47-64, February.
    • Handle: RePEc:kap:iaecre:v:13:y:2007:i:1:p:47-64:10.1007/s11294-006-9062-y
    DOI: 10.1007/s11294-006-9062-y
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    Cited by:

    1. George Deltas & Donna Ramirez Harrington & Madhu Khanna, 2013. "Oligopolies with (Somewhat) Environmentally Conscious Consumers: Market Equilibrium and Regulatory Intervention," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(3), pages 640-667, September.
    2. Giacomo Manetti & Simone Toccafondi, 2013. "Il coinvolgimento degli stakeholder nella governance e nel reporting delle fondazioni bancarie," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2013(3), pages 51-76.
    3. Sengupta, Aditi, 2012. "Investment in cleaner technology and signaling distortions in a market with green consumers," Journal of Environmental Economics and Management, Elsevier, vol. 64(3), pages 468-480.
    4. Sengupta, Aditi, 2015. "Competitive investment in clean technology and uninformed green consumers," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 125-141.
    5. Aditi Sengupta, 2010. "Signaling environmental quality to green consumers and the incentive to invest in cleaner technology: Effect of environmental regulation," Departmental Working Papers 1001, Southern Methodist University, Department of Economics.
    6. Xia, Dan & Wang, Xiang-Qian, 2021. "The synergetic impact of environmental and innovation information disclosure on corporate financial performance: An empirical study based on China coal listed companies," Technovation, Elsevier, vol. 100(C).
    7. Vasileiou, Efi & Georgantzís, Nikolaos, 2015. "An experiment on energy-saving competition with socially responsible consumers: Opening the black box," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 1-10.
    8. Campbell, David & Slack, Richard, 2011. "Environmental disclosure and environmental risk: Sceptical attitudes of UK sell-side bank analysts," The British Accounting Review, Elsevier, vol. 43(1), pages 54-64.
    9. Joshua Anyangah, 2012. "On information, extended liability and judgment proof firms," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(1), pages 61-84, January.
    10. Earnhart, Dietrich & Germeshausen, Robert & von Graevenitz, Kathrine, 2022. "Effects of information-based regulation on financial outcomes: Evidence from the European Union's public emission registry," ZEW Discussion Papers 22-015, ZEW - Leibniz Centre for European Economic Research.
    11. Anyangah Joshua, 2012. "Mitigating Judgment Proofness: Information Acquisition vs. Extended Liability," Review of Law & Economics, De Gruyter, vol. 8(3), pages 657-696, December.

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    More about this item

    Keywords

    information disclosure; voluntary approaches; eco-label; pollution; asymmetric information; Q50; D80;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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