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Market based instruments for environmental policymaking in Latin America and the Caribbean: lessons from eleven countries

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  • MOTTA, RONALDO SER A DA
  • HUBER, RICHARD M.
  • RUITENBEEK, H. JACK
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    Abstract

    This article summarizes a comprehensive series of country studies in Latin America and the Caribbean (LAC), addressing experiences with market based instruments (MBIs) and command and control (CAC) approaches. First, MBIs can be an important means for introducing some added efficiency to existing CAC mechanisms. The scope of the MBIs must, however, match the institutional capacity to implement them. MBI approaches that introduce gradual and flexible reforms are therefore more likely to be consistent with ongoing institutional changes. Second, while the revenue collection task of MBIs is often highlighted, there is a strong need to channel revenues to local authorities to assist in building institutional capacity. Finally, international donor agencies are most prone to recommend OECD solutions with little regard to institutional issues. Moreover, most of the information flow regarding MBIs has been of a 'north-south' variety, whereas increased information sharing in a 'south-south' dialog would benefit all parties.

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    Bibliographic Info

    Article provided by Cambridge University Press in its journal Environment and Development Economics.

    Volume (Year): 4 (1999)
    Issue (Month): 02 (May)
    Pages: 177-201

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    Handle: RePEc:cup:endeec:v:4:y:1999:i:02:p:177-201_00

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    Cited by:
    1. Ronaldo Seroa da Motta, 2002. "Determinants of Environmental Performance in the Brazilian Industrial Sector," IDB Publications 9061, Inter-American Development Bank.
    2. Koji Miyawaki & Yasuhiro Omori & Akira Hibiki, 2010. "Panel Data Analysis of Japanese Residential Water Demand Using a Discrete/Continuous Choice Approach," CIRJE F-Series CIRJE-F-764, CIRJE, Faculty of Economics, University of Tokyo.
    3. Kolstad, Charles D. & Toman, Michael, 2005. "The Economics of Climate Policy," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 30, pages 1561-1618 Elsevier.
    4. Caffera, Marcelo, 2011. "The use of economic instruments for pollution control in Latin America: lessons for future policy design," Environment and Development Economics, Cambridge University Press, vol. 16(03), pages 247-273, June.
    5. Seroa da Motta, Ronaldo, 2006. "Analyzing the environmental performance of the Brazilian industrial sector," Ecological Economics, Elsevier, vol. 57(2), pages 269-281, May.
    6. Yang, Wanhong & Bryan, Brett A. & MacDonald, Darla Hatton & Ward, John R. & Wells, Geoff & Crossman, Neville D. & Connor, Jeffrey D., 2010. "A conservation industry for sustaining natural capital and ecosystem services in agricultural landscapes," Ecological Economics, Elsevier, vol. 69(4), pages 680-689, February.
    7. Clevo Wilson & Manel Jayamanna & Wasantha Athukorala, 2010. "Why do policy decision-makers opt for command and control environmental regulation? An economic analysis with special reference to Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 259, School of Economics and Finance, Queensland University of Technology.
    8. Tisdell, Clement A. & Wilson, Clevo, 2003. "Economics of Wildlife Tourism," Economics, Ecology and Environment Working Papers 48969, University of Queensland, School of Economics.
    9. Enrique Calfucura & Jessica Coria & José Miguel Sánchez, 2008. "Permisos Transables de Emisión en Chile: Lecciones, Desafíos y Oportunidades para Países en Desarrollo," Documentos de Trabajo 347, Instituto de Economia. Pontificia Universidad Católica de Chile..

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