Title

Greenhouse Gas Disclosure and Emissions Benchmarking

Publication Date

8-3-2022

Abstract

This study examines the effects of the US Greenhouse Gas (GHG) Reporting Program, which requires thousands of industrial facilities to measure and report their GHG emissions. It shows 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 emissions reductions. Firms’ concerns about future legislation appear to motivate this behavior. Lastly, I find no significant evidence of emissions reductions due solely to the measurement and (nonpublic) reporting of emissions to the regulator; in this setting, public disclosure is important for generating real effects.

Document Type

Article

Keywords

Disclosure, Transparency, Environmental, Social and Governance, ESG, Climate Change, Benchmarking, Peer Effects, Real Effects

DOI

10.2139/ssrn.3448904

Source

SMU Cox School of Business Research Paper Series

Language

English

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