Reducing information asymmetry in the power industry: Mandatory and voluntary information disclosure regulations of sulfur dioxide emission

• Published in: Energy policy Vol. 45; pp. 704 - 713
• Main Authors: Zhu, Xufeng, Zhang, Chao
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 01.06.2012; Elsevier; Elsevier Science Ltd
• Subjects: Air pollution; Air pollution caused by fuel industries; Annan samhällsvetenskap; Applied sciences; Asymmetric information; Atmospheric pollution; business enterprises; Developed countries; Developing countries; Disclosure; Emissions; Emissions control; Energy; Energy industry; Energy policy; Energy. Thermal use of fuels; Environmental regulations; Exact sciences and technology; General. Regulations. Norms. Economy; Greenhouse effect; industry; issues and policy; LDCs; Mandatory and voluntary information disclosure; Market regulation; markets; monitoring; Other Social Sciences; Pollution; Power; Power industry; Regulation; Regulatory policy; Research methodology; Samhällsvetenskap; Social Sciences; Studies; Sulfur; Sulfur dioxide; Sulfur dioxide emission; U.S.A; United States; Voluntary; United States; North America; America; United States > US; Mandatory and voluntary information disclosure; Power industry; Sulfur dioxide emission; Electric power plant; Pollution control; Pollutant emission; Sulfur dioxide; Information communication; Legal aspect; Air pollution; Regulation; Regulation policy; Electric power industry; Institutional analysis; Environmental protection
• ISSN: 0301-4215; 1873-6777; 1873-6777
• DOI: 10.1016/j.enpol.2012.03.024

This paper focuses on the institutional framework for sulfur dioxide emission information disclosure (SDEID) in power industries. The authors argue that mandatory and voluntary SDEID are two complementary regulatory instruments for emission reduction in the power industry. An analytical framework of SDEID with six facets is suggested in this paper to demonstrate relevant legal provisions and regulatory policies of mandatory and voluntary SDEID of power industries in the US. Empirical research shows that mandatory and voluntary SDEID of the power industry have been regulated simultaneously in the US. The foundation of power companies' willingness to disclose emission information voluntarily is the combination of mandatory scientific monitoring with market regulation in the current SDEID system in the US. In comparison, the SDEID of power industries has yet to be widely implemented in developing countries. Finally, the paper provides some implications to developing countries that plan to learn institutional arrangements from developed countries. ► Mandatory and voluntary SDEID are two complementary regulatory instruments. ► An analytical framework is suggested to demonstrate SDEID of power industry in the US. ► Voluntary disclosure can be attributed to scientific monitoring and market regulation. ► We provide implications to developing countries learning from developed countries.