Journal of Regulatory Economics

, Volume 30, Issue 2, pp 141–158

Information regulation: Do the victims of externalities pay attention?

Original Article

DOI: 10.1007/s11149-006-0016-3

Cite this article as:
Oberholzer-Gee, F. & Mitsunari, M. J Regul Econ (2006) 30: 141. doi:10.1007/s11149-006-0016-3

Abstract

Individuals living in metropolitan areas are exposed to a large number of industrial risks. Information regulation is a new tool to manage such risks. We ask if large-scale information initiatives directed at the general public can affect individual risk perceptions. The answer is affirmative. Using the publication of the Toxics Release Inventory as a case study, we find a decline in predicted property values when new information on pollution became available, indicating that homebuyers adjusted their risk perceptions upward. The response, however, is limited to sources of toxic emissions that are located at a moderate distance from the properties in our sample.

Keywords

Information regulationPollution preventionToxics Release Inventor

JEL Classification (2000)

H23K32L51I18

Copyright information

© Springer Science+Business Media, LLC 2006

Authors and Affiliations

  1. 1.Harvard UniversityBostonUSA
  2. 2.Business Innovation CenterMizuho Information and Research Institute IncTokyoJapan