The Real Effects of Mandatory CSR Disclosure on Emissions: Evidence from the Greenhouse Gas Reporting Program

We examine the real effects of Greenhouse Gas Reporting Program (GHGRP) on electric power plants in United States. Starting 2010, GHGRP requires both reporting greenhouse gas emissions by facilities emitting more than 25,000 metric tons carbon dioxide per year to Environmental Protection Agency and public dissemination reported data a comprehensive accessible manner. Using difference-in-difference research design, we find that are subject reduced emission rates 7%. The effect is stronger for owned publicly traded firms. detect evidence strategic behavior firms own non-GHGRP plants. Such strategically reallocate between reduce GHGRP-disclosed emissions. interpret this as program costly affected Our results offer new or shareholder pressure primary channel through which mandatory Corporate Social Responsibility (CSR) programs affect firm behavior. Institutional subscribers NBER working paper series, residents developing countries may download without additional charge at www.nber.org.