What is environmental disclosure and how does it help the environment?
Environmental disclosure is designed to help you learn more about where your electricity company gets its electricity, and what those electricity sources do to the environment. Ultimately, when you can choose your electricity company it will help you "comparison shop" for a company that uses electricity that is not as harmful to the environment – such as electricity from renewable forms of energy. In addition, ensuring that consumers have adequate information to select superior environmental performers, or screen out poor performers, provides an incentive for corporations to improve their environmental performance.

How do environmental disclosure laws help consumers?
One of the greatest obstacles to making smart choices is a lack of information. Disclosure is designed to make confusing choices easier by ensuring that consumers have all the information they need to make sound choices.

Environmental disclosure forms allow you to compare your electricity sources with those of other companies, and choose the one that pollutes the least.

For example, buyers and sellers of a good, in this case electricity, may have different levels of information about the externalities that result from the production, use, or consumption of that electricity. A market failure results because individuals are basing economic decisions on incomplete or faulty information, and therefore, are unable to participate in the market in a way that best serves their interests. Disclosure laws put the necessary information in a consumer’s hands, thereby ensuring that the market will begin to correct itself (e.g produce the cleaner energy that consumers demand).