We model the optimal design of programs requiring heterogeneous firms to disclose harmful emissions when disclosure yields both direct and indirect benefits. The indirect benefit arises from the internalization of social costs and resulting reduction in emissions. The direct benefit results from...

In this paper we consider Voluntary Agreements (VAs) as an information-sharing device. In a duopoly model firms compete a la Cournot and aim to reduce environmental damages because consumers have green preferences that partially internalise negative externalities. However both firms are...