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Choosing Environmental Policy Tools: Theoretical Cautions and Practical Considerations

  • Clifford S. Russell
  • Philip T. Powell

This working paper contains a review and analysis of environmental policy tools in Latin America. It contains a review of the instruments themselves and their properties are discussed in both static and dynamic contexts. The report brings together the institutional and more narrowly economic material and attempts to offer general guidance on types of instruments that seem most promising in various combinations of circumstances. These recommendations are also contrasted with those from some other authors, to the extent that is possible. The penultimate section of the report contains summary material on efforts at environmental management in a few Latin American countries, especially on efforts to institute economic incentive systems. The concluding section contains both a summary of the major arguments and conclusions from earlier sections and some speculation about the possibilities for using environmental policy design as a way of influencing institutional evolution within developing countries.

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Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 25258.

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Date of creation: Jun 1996
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Handle: RePEc:idb:brikps:25258
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  1. de Janvry, Alain & Sadoulet, Elisabeth, 1993. "Market, state, and civil organizations in Latin America beyond the debt crisis: The context for rural development," World Development, Elsevier, vol. 21(4), pages 659-674, April.
  2. Bruce, Neil & Ellis, Gregory M., 1993. "Environmental taxes and policies for developing countries," Policy Research Working Paper Series 1177, The World Bank.
  3. Darrell L. Hueth, 1995. "The Use of Subsidies to Achieve Efficient Resource Allocation in Upland Watersheds," IDB Publications (Working Papers) 39158, Inter-American Development Bank.
  4. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
  5. Farrow, Scott, 1995. "The dual political economy of taxes and tradable permits," Economics Letters, Elsevier, vol. 49(2), pages 217-220, August.
  6. Thorbecke, Erik, 1993. "Impact of state and civil institutions on the operation of rural market and nonmarket configurations," World Development, Elsevier, vol. 21(4), pages 591-605, April.
  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.
  8. Arora Seema & Cason Timothy N., 1995. "An Experiment in Voluntary Environmental Regulation: Participation in EPA's 33/50 Program," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 271-286, May.
  9. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
  10. Forster, Nancy R., 1992. "Protecting fragile lands: New reasons to tackle old problems," World Development, Elsevier, vol. 20(4), pages 571-585, April.
  11. Lyon, Randolph M., 1989. "Transferable discharge permit systems and environmental management in developing countries," World Development, Elsevier, vol. 17(8), pages 1299-1312, August.
  12. Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
  13. William J. Vaughan & Sergio Ardila, 1993. "Economic Analysis of the Environmental Aspects of Investment Projects," IDB Publications (Working Papers) 25438, Inter-American Development Bank.
  14. Glenn Jenkins & RANJIT LAMECH, 1994. "Green Taxes And Incentive Policies: An International Perspective," Development Discussion Papers 1994-02, JDI Executive Programs.
  15. Russeli, Clifford S., 1986. "A note on the efficiency ranking of two second-best policy instruments for pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 13(1), pages 13-17, March.
  16. Sébastien Dessus & David Roland-Holst & Dominique van der Mensbrugghe, 1994. "Input-Based Pollution Estimates for Environmental Assessment in Developing Countries," OECD Development Centre Working Papers 101, OECD Publishing.
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