Freedom of Information and Corporate Pollution

Abstract

We document a significant reduction in facility-level toxic emissions when state-level Freedom of Information Act (FOIA) laws are enacted and strengthened. Such laws reduce the costs of obtaining quasi-private information. Strengthened FOIA laws are associated with more FOIA requests to state-level environmental protection agencies, which are negatively related to local toxic emissions. Tests using paired facilities across state borders support a causal interpretation of our findings. Notably, the negative association between the strength of FOIA laws and pollution emissions is concentrated in states with higher preexisting pollution abatement costs, higher preexisting levels of public corruption, and more lenient environmental policies. Our empirical evidence suggests that reducing the costs of accessing information on governmental activities, especially those related to the regulation and monitoring of corporate emissions, mitigates polluting behavior. 

Keywords: freedom of information; open records; transparency; pollution; environmental awareness

JEL Classification: D80, H40, Q50,