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THE ROLE OF INFORMATION DISCLOSURE IN CLIMATE MITIGATION POLICY

Mark Cohen and W Viscusi

Climate Change Economics (CCE), 2012, vol. 03, issue 04, 1-21

Abstract: Information disclosure policies represent an additional policy mechanism that can be used to foster reductions in greenhouse gas emissions. These informational efforts could be either mandatory or voluntary, but in each case government regulation could play a productive role by establishing common structures for the information and providing criteria to ensure the accuracy and credibility of the information. Unlike most previous uses of environmental information disclosure, such as the Toxic Release Inventory and pesticide warnings, carbon footprint labeling does not communicate information about immediate private benefits. While considerable insight can be gleaned by examining the principles for effective warnings generally, additional research would further our understanding of how to best design a successful information effort directed at varied future environmental benefits. Care is needed as green labeling may distort consumer decisions if undue prominence is given to environmental consequences as compared to other valued attributes, such as safety.

Keywords: Information disclosure; carbon labels; greenhouse gas mitigation; green labeling; warnings (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (11)

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DOI: 10.1142/S2010007812500200

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