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Information Disclosure Policies: Evidence from the Electricity Industry

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  • Magali Delmas
  • Maria Montes-Sancho
  • Jay P. Shimshack

Abstract

A “third wave” of environmental policy has recently emerged that emphasizes information provision as an integral part of the risk mitigation strategy. While theory suggests information programs may correct market failures and improve welfare, the empirical effectiveness of these programs remains largely undetermined. We show that mandatory information disclosure programs in the electricity industry achieve stated policy goals. We that the average proportion of fossil fuels decreases and the average proportion of clean increases in response to disclosure programs. However, the programs also produce unintended consequences. Customer composition and pre-existing fuel mix significantly affect program response, suggesting that effective information disclosure policies may not be efficient.

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Bibliographic Info

Paper provided by Department of Economics, Tufts University in its series Discussion Papers Series, Department of Economics, Tufts University with number 0707.

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Date of creation: 2007
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Handle: RePEc:tuf:tuftec:0707

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Keywords: disclosure; information; fuel mix; electric utilities;

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References

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Citations

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Cited by:
  1. Owen, Ann L. & Videras, Julio & Wu, Stephen, 2008. "More information isn’t always better: the case of voluntary provision of environmental quality," MPRA Paper 11588, University Library of Munich, Germany.
  2. Powers, Nicholas & Blackman, Allen & Lyon, Thomas P. & Narain, Urvashi, 2008. "Does Disclosure Reduce Pollution? Evidence from India's Green Rating Project," Discussion Papers dp-08-38, Resources For the Future.
  3. Allen Blackman & Sarah Darley & Thomas P. Lyon & Kris Wernstedt, 2010. "What Drives Participation in State Voluntary Cleanup Programs? Evidence from Oregon," Land Economics, University of Wisconsin Press, vol. 86(4), pages 785-799.
  4. Delmas, Magali A. & Montes-Sancho, Maria J., 2011. "U.S. state policies for renewable energy: Context and effectiveness," Energy Policy, Elsevier, vol. 39(5), pages 2273-2288, May.
  5. Stephen Gibbons & Eric Neumayer & Richard Perkins, 2013. "Student Satisfaction, League Tables and University Applications," SERC Discussion Papers 0142, Spatial Economics Research Centre, LSE.
  6. Blackman, Allen, 2009. "Alternative Pollution Control Policies in Developing Countries: Informal, Informational, and Voluntary," Discussion Papers dp-09-14-efd, Resources For the Future.
  7. Matisoff, Daniel C., 2013. "Different rays of sunlight: Understanding information disclosure and carbon transparency," Energy Policy, Elsevier, vol. 55(C), pages 579-592.
  8. Nicholas E. Powers, 2013. "Measuring The Impact Of The Toxics Release Inventory: Evidence From Manufacturing Plant Births," Working Papers 13-07, Center for Economic Studies, U.S. Census Bureau.

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