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The use of economic instruments for pollution control in Latin America: lessons for future policy design


I review the few programs implemented in Latin America to control pollution with direct economic instruments and draw general lessons for the future implementation of these instruments in the region. The available evidence suggests that a combination of low capacities and political economy issues negatively affected the implementation of these programs. As a result, the capacity of the economic instruments to induce emission reductions cost effectively and their future political viability in these countries in the short- or medium-run may have been compromised. This present state of affairs provides more evidence in favor of the policy recommendation that Latin American countries should build local capacities before implementing direct economic instruments, than in favor of the alternative that these countries should adapt direct economic instruments to their institutional and political characteristics.

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

Volume (Year): 16 (2011)
Issue (Month): 03 (June)
Pages: 247-273

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Handle: RePEc:cup:endeec:v:16:y:2011:i:03:p:247-273_00
Contact details of provider: Postal: Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK
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  7. Eskeland, Gunnar S & Jimenez, Emmanuel, 1992. "Policy Instruments for Pollution Control in Developing Countries," World Bank Research Observer, World Bank Group, vol. 7(2), pages 145-69, July.
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