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Information Disclosure Policy: Do States' Data Processing Efforts Help More than the Information Disclosure Itself?

Author

Listed:
  • Hyunhoe Bae
  • Peter Wilcoxen
  • David Popp

Abstract

The Toxics Release Inventory (TRI) was expected to reduce health risks stemming from emissions of hazardous chemicals by increasing public pressure on polluters. However, it is a massive and complex dataset, requiring significant expertise to interpret in its raw form. State governments have attempted to mitigate the TRI's information processing burden on the public via two types of policies: (1) selection and dissemination of raw TRI data for plants within the state, and (2) data processing activities producing more refined reports and analysis. This study assesses the effectiveness of those policies. Our results show that state-level data dissemination efforts lowered the total number of pounds of chemicals released, but had little effect on health risks. State-level data processing efforts, in contrast, did lead to significant reductions in health risks. We conclude that simple dissemination of the data was ineffective (and even counterproductive in some instances), and that the states' data processing efforts have played a critical role in achieving the TRI's underlying goal.

Suggested Citation

  • Hyunhoe Bae & Peter Wilcoxen & David Popp, 2008. "Information Disclosure Policy: Do States' Data Processing Efforts Help More than the Information Disclosure Itself?," NBER Working Papers 14409, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:14409
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    3. Dong, Zhaoyingzi & Liu, Haijing & Zhang, Weiwen, 2024. "The effect of information disclosure on low-carbon innovation," Energy, Elsevier, vol. 288(C).
    4. Janet Currie, 2011. "Inequality at Birth: Some Causes and Consequences," American Economic Review, American Economic Association, vol. 101(3), pages 1-22, May.
    5. Shanti Gamper-Rabindran & Stephen Finger, 2013. "Does industry self-regulation reduce pollution? Responsible Care in the chemical industry," Journal of Regulatory Economics, Springer, vol. 43(1), pages 1-30, January.
    6. Miron Avidan & Dror Etzion & Joel Gehman, 2019. "Opaque transparency: How material affordances shape intermediary work," Regulation & Governance, John Wiley & Sons, vol. 13(2), pages 197-219, June.
    7. Mah, Daphne Ngar-yin & Cheung, Darren Man-wai & Leung, Michael K.H. & Wang, Maggie Yachao & Wong, Mandy Wai-ming & Lo, Kevin & Cheung, Altair T.F., 2021. "Policy mixes and the policy learning process of energy transitions: Insights from the feed-in tariff policy and urban community solar in Hong Kong," Energy Policy, Elsevier, vol. 157(C).
    8. Finger, Stephen R. & Gamper-Rabindran, Shanti, 2013. "Mandatory disclosure of plant emissions into the environment and worker chemical exposure inside plants," Ecological Economics, Elsevier, vol. 87(C), pages 124-136.
    9. Daniel C. Matisoff & Douglas S. Noonan & John J. O'Brien, 2013. "Convergence in Environmental Reporting: Assessing the Carbon Disclosure Project," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 285-305, July.
    10. Hyunhoe Bae, 2012. "Reducing Environmental Risks by Information Disclosure: Evidence in Residential Lead Paint Disclosure Rule," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(2), pages 404-431, March.
    11. Daniel Matisoff, 2015. "Sources of specification errors in the assessment of voluntary environmental programs: understanding program impacts," Policy Sciences, Springer;Society of Policy Sciences, vol. 48(1), pages 109-126, March.
    12. Prayag Lal Yadav & Seung Hun Han & Hohyun Kim, 2017. "Manager’s Dilemma: Stockholders’ and Consumers’ Responses to Corporate Environmental Efforts," Sustainability, MDPI, vol. 9(7), pages 1-14, June.
    13. Emiko Inoue, 2016. "Environmental disclosure and innovation activity: Evidence from EU corporations," Discussion papers e-16-012, Graduate School of Economics , Kyoto University.
    14. Fisk, Jonathan M. & Good, A.J., 2019. "Information booms and busts: Examining oil and gas disclosure policies across the states," Energy Policy, Elsevier, vol. 127(C), pages 374-381.
    15. Prayag Lal Yadav & Seung Hun Han & Jae Jeung Rho, 2016. "Impact of Environmental Performance on Firm Value for Sustainable Investment: Evidence from Large US Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 25(6), pages 402-420, September.
    16. Matisoff, Daniel C., 2013. "Different rays of sunlight: Understanding information disclosure and carbon transparency," Energy Policy, Elsevier, vol. 55(C), pages 579-592.
    17. Soyoung Yoo & Jiyong Eom & Ingoo Han, 2020. "Too Costly to Disregard: The Cost Competitiveness of Environmental Operating Practices," Sustainability, MDPI, vol. 12(15), pages 1-29, July.
    18. Bae, Hyunhoe & Yu, Sanguk, 2018. "Information and coercive regulation: The impact of fuel mix information disclosure on states’ adoption of renewable energy policy," Energy Policy, Elsevier, vol. 117(C), pages 151-159.
    19. Hui-Cheng Yu & Lopin Kuo & Beiling Ma, 2020. "The Drivers of Corporate Water Disclosure in Enhancing Information Transparency," Sustainability, MDPI, vol. 12(1), pages 1-14, January.

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    More about this item

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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