Freedom of Information and Industrial Pollution

• In Event: Social, Governance and Environmental Considerations

Abstract

The transparency of the information environment in which US firms operate, as measured by the strength of state-level freedom of information (FOI) laws, is negatively associated with industrial pollution. Not only do the emissions of firms decrease as FOI laws become stronger, the overall level of emissions in a state is negatively related to the total number of FOI requests received by the state's environmental department or agency. Notably, the negative association between the strength of FOI laws and pollution emissions is concentrated in states with lower pollution abatement costs, more efficient governments, more lenient environmental policies, and higher preexisting levels of public corruption. These findings suggest that strengthening public access to information on governmental activities, especially those related to the regulation and monitoring of industrial pollution, mitigates polluting behavior.

Authors

• Adriana S. Cordis, Winthrop University

• Po-Hsuan Hsu, National Tsing Hua University

• Jin Zhang, Monash University