Information Disclosure Policies: When Do They Bring Environmental Improvements?

Toshihiro Uchida ()

International Advances in Economic Research, 2007, vol. 13, issue 1, pages 47-64

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

Keywords: information disclosure; voluntary approaches; eco-label; pollution; asymmetric information; Q50; D80 (search for similar items in EconPapers)

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