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How Can Latin America Help the World to Cope with Climate Change?

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  • Sebastian Galiani
  • Manuel Puente
  • Federico Weinschelbaum

Abstract

Latin America has a comparative advantage in deforestation compared to other forms of climate change mitigation. Thus, to the extent that Latin America should engage in mitigation, the optimal climate change policy should manage these advantages by generating incentives in Latin America to deal with forestry. This paper describes the problem of deforestation and studies the market failures that arise in relation to forestry emission problems, analyzing them from a global public good perspective. The paper additionally describes other problems related to forestry emission issues and presents a non-exhaustive review of the solutions currently proposed to address this issue. The paper concludes with policy recommendations.

Suggested Citation

  • Sebastian Galiani & Manuel Puente & Federico Weinschelbaum, 2013. "How Can Latin America Help the World to Cope with Climate Change?," Research Department Publications IDB-PB-182, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:idb-pb-182
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    JEL classification:

    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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