Market-Based Policies for Pollution Control in Latin America
AbstractRapid urbanization and increased industrialization have led to high pollution levels throughout Latin America. Economists tout policies based on market-based economic incentives as the most cost-effective methods for addressing a wide variety of environmental problems. This chapter examines market-based incentives and their applicability to Latin America. We first review the market-based incentives traditionally used to address pollution – emissions taxes, environmental subsidies, tax and subsidy combinations, tradable pollution permits, and hybrid instruments – and compare these instruments to command-and-control policies. We then discuss two sets of factors that affect how feasible and efficient pollution control policy will be in Latin America. We focus on practical considerations such as monitoring and enforcement, distributional issues, political feasibility, institutional considerations, administrative costs, and compliance costs. We also examine what the violation of standard modeling assumptions implies for the success of pollution control policy. In particular, we focus on non-competitive market structures, imperfect information or uncertainty, the effects of regulation on global competitiveness, and the compatibility of environmental goals with the goals of growth and development. Finally, we compare Latin American experiences with market-based incentives with those in the U.S. and Europe, and conclude with several policy recommendations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Center for Environmental Economics, U.S. Environmental Protection Agency in its series NCEE Working Paper Series with number 200301.
Length: 41 pages
Date of creation: Mar 2003
Date of revision: Mar 2003
Contact details of provider:
Postal: 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460
Web page: http://yosemite.epa.gov/ee/epa/eed.nsf/webpages/homepage
More information through EDIRC
pollution control options; market incentives; Latin America;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Blackman, Allen, 2005. "Colombia's Discharge Fee Program: Incentives for Polluters or Regulators?," Discussion Papers dp-05-31, Resources For the Future.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cynthia Morgan).
If references are entirely missing, you can add them using this form.