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Greenhouse Gas Disclosure and Emissions Benchmarking

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  • SORABH TOMAR

Abstract

I examine the effects of the U.S. Greenhouse Gas (GHG) Reporting Program, which requires thousands of industrial facilities to measure and report their GHG emissions. I show that facilities reduce their GHG emissions by 7.9% following the disclosure of emissions data. The evidence indicates that benchmarking—whereby facilities use the disclosures of their peers to assess their own relative GHG performance—spurs emission reductions. Firms' concerns about future legislation appear to motivate this behavior and measurement alone (without disclosure) seems not to reduce emissions. My study highlights how mandatory GHG disclosure can create real effects for peers.

Suggested Citation

  • Sorabh Tomar, 2023. "Greenhouse Gas Disclosure and Emissions Benchmarking," Journal of Accounting Research, Wiley Blackwell, vol. 61(2), pages 451-492, May.
    • Handle: RePEc:bla:joares:v:61:y:2023:i:2:p:451-492
    DOI: 10.1111/1475-679X.12473
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    1. Zacharias Sautner & Laurence Van Lent & Grigory Vilkov & Ruishen Zhang, 2023. "Firm‐Level Climate Change Exposure," Journal of Finance, American Finance Association, vol. 78(3), pages 1449-1498, June.
    2. Azad Haider, 2024. "The Determinants of Greenhouse Gas Emissions: Empirical Evidence from Canadian Provinces," Sustainability, MDPI, vol. 16(6), pages 1-21, March.

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