Information as Environmental Regulation: TRI and Performance Benchmarking, Precursor to a New Paradigm?

Abstract

The Toxics Release Inventory (TRI) marks a watershed, pioneering the use of performance monitoring and benchmarking as regulatory tools. By creating an objective performance metric, TRI compels firms to self-monitor even as it enables them to benchmark performance among operating units and against their competitors. Simultaneously, it increases external transparency and accountability, enabling interested parties-citizens, regulators, and investors-to monitor pollution performance, make benchmarking comparisons, and discipline poor performers. This Article explores the strengths and limitations of this innovative approach, and its implications for future environmental regulation.