The present paper examines the use of information provision when products generate damages to the consumers as well as an environmental externality. We show that information provision dominates taxation if information can be provided at low marginal cost. A policy regime that combines information provision and taxation leads to higher welfare because a uniform tax alone levies a heavier than the optimal burden on the informed consumers and allows the uninformed consumer to partially free ride on the informed consumers voluntary actions. The combination of policies regime reduces this problem, allocating the effort of reducing the consumption of the environmentally damaging good more efficiently among consumers. Therefore, recycling of environmental tax revenues to finance information provision improves welfare.