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Determinants Of Compliance In The Emissions Compensation Program In Santiago, Chile

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  • Milagro Palacios
  • Carlos Chávez

    ()
    (Departamento de Economía, Universidad de Concepción)

Abstract

The Emissions Compensation (EC) Program in Santiago, Chile, has been affected from the beginning by the incidence of individual violations of maximum-emission capacity permits. Based on information at the individual source level, in this paper we develop and estimate a model explaining the individual compliance decision with emission capacity permits. Our results indicate that the compliance behavior of sources during the period 1993 1999 do in fact depend on their individual characteristics. Among other factors, type of equipment used, industrial sector to which the source belongs, fuel type used, the initial allocation of emission capacity permits to the source, and population density as well as average income in the area where the source is located, turn out to be relevant. Furthermore, the evidence does not allow us to reject the presence of structural change in the individual decision to comply with permit holdings because of the introduction of natural gas in the Metropolitan Region of Santiago at the end of 1997.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Departamento de Economía, Universidad de Concepción in its series Working Papers with number 01-2003.

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Date of creation: 2003
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Handle: RePEc:cnc:wpaper:01-2003

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Postal: Victoria 471, Conceptión
Web page: http://economia.udec.cl
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Cited by:
  1. Jessica Coria, 2007. "Environmental policy, fuel prices and the switching to natural gas in Santiago, Chile," Working Papers 200701, Latin American and Caribbean Environmental Economics Program, revised Jun 2007.
  2. Coria, Jessica & Löfgren, Åsa & Sterner, Thomas, 2009. "To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile," Discussion Papers dp-09-25-efd, Resources For the Future.
  3. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from air pollution in Santiago, Chile," Working Papers in Economics 326, University of Gothenburg, Department of Economics.
  4. 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..
  5. 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.
  6. James J. Murphy & John K. Stranlund, 2005. "A Laboratory Investigation of Compliance Behavior under Tradable Emissions Rights: Implications for Targeted Enforcement," Working Papers 2005-1, University of Massachusetts Amherst, Department of Resource Economics.
  7. Coria, Jessica, 2008. "Environmental Policy, Fuel Prices, and the Switch to Natural Gas in Santiago, Chile," Discussion Papers dp-08-28-efd, Resources For the Future.

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