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Transparencyincontrol
ofenvironmentalregulationscompliance
37
image.4Acompanypollutinglessthaninaccordancewithenvironmental
regulationsandstandardswouldwinconsumer’ssympathyandraiseits
goodwillandbrandequity,whileexceedingemissionquotameansoth-
erwise.5
Thebenefitsofpublicdisclosureprogramsarethattheyarenotatall
imposingaburdenongovernment,notrequiringaneffectiveenforcement
capabilityandnotcostingmuchduetonewinformationtechnologiesbe-
cominglessandlessfinanciallydemanding.Aproperlymanagedandrel-
ativelysmallinfrastructureforcollectionanddisseminationofinformation
isgenerallysufficientforitsimplementation.Andthatisthefeaturethat
hasmadedisclosureprogramsveryattractivetogovernments.6
Despitetheevidenceofpioneeringdisclosureprogramshavingun-
deniableimpactonpollutionabatement,itisstilllittleknownabouthow
exactlyitmotivatescompaniestocutdownemissions.Someinsightinto
theissueisofferedbyTietenberg7,whoidentifiesseveralwayshowpublic
disclosureofinformationaboutenvironmentalpollutioncausedbycom-
paniescanaffecttheirenvironmentalperformance.Publicdisclosurecan
aswasprovenaffectstockpricesoffirms’securities,aswellasdemand
fortheirgoods,asimageofanexcessivepollutercancausealossofsym-
pathybetween“greenconsumers”.Itcanalsoaffectfirms’abilitytohire
andretainemployeesforthesamereason,asawarenessofthoseseeking
jobsaboutfirms’environmentalperformancecanaffecttheirwillingness
toworkforsuchacompany.Publicdisclosuremayconvincecitizensas
membersofthepublictoinitiatetortlawactionsagainstpollutersoreven
motivatejudicialactionsincountrieswheretheconstitutionguarantees
citizenstherighttoahealthyenvironmentaswellasmotivateprivatesuit-
orstoforcecompaniestoundertakeabatement.AsalastwayTietenberg
considersbuildingsupportfornewpollutioncontrollegislation.
Amongthebestknownexamplesofstructuredinformationprograms
thatrelyonnon-regulatoryforcesforcreatingincentivesforcompaniesto
improveenvironmentalperformanceareToxicReleaseInventory(TRI)in
4
J.H.Hong,B.Laplante,C.Meisner,PublicDisclosureofEnvironmentalViolationsinthe
RepublicofKorea,PolicyResearchWorkingPaper,3126,2003,p.4.
5
F.J.André,A.Sokri,G.Zaccour,PublicDisclosureProgramsvs.traditionalapproaches
forenvironmentalregulation:Greengoodwillandthepoliciesofthefirm,„Environmental
JournalofOperationalResearch”,2011,Vol.212,Issue1,p.199-212.
6
J.G.López,T.Sterner,S.Afsah,PublicDisclosureofIndustrialPollution:ThePROPER
ApproachforIndonesia?,Göteborg2009,p.2.
7
T.Tietenberg,DisclosureStrategiesforPollutionControl,„EnvironmentalandResource
Economics”,1998,Vol.11,p.587-602.
