Can a Greenhouse Gas Disclosure Rule Lead to Emissions Reductions?

In response to growing concern about the effects of climate change, different regions of the world have adopted mandatory greenhouse gas (GHG) disclosure rules, including Australia, the European Union, and the United Kingdom. Notably, the U.S. Securities and Exchange Commission (SEC) proposed an extensive climate reporting rule in 2022. The goal of these programs is frequently to inform stakeholders of the climate change-related risks faced by emitters. For example, the SEC’s proposed rule aims to inform investors.

Although the explicit intent is rarely to affect emissions, the law and economics literature highlights various cases (e.g., restaurant hygiene and mine safety) … Read more