A Market-Based Environmental Policy Experiment in Chile
Despite the increasing interest in the use of emissions trading for pollution control, empirical evidence reduces to a few experiences in the US. This paper studies the ""emission-offsets trading program"" established since 1992 to control particulate in Santiago-Chile. While the program is doing well from an environmental perspective, thanks, in part, to the price-based introduction of natural gas, the market is poorly performing because of high transaction costs, uncertainty and low enforcement. However, the scarcity rents created by the allocation of grandfathered emission rights to incumbents have proved very effective for the completion of the emissions inventory.
|Date of creation:||2000|
|Publication status:||Published as "A Market-Based Environmental Policy Experiment in Chile", Journal of Law and Economics, Vol. 45, 267-287, 2002.|
|Contact details of provider:|| Postal: Avda. Vicuña Mackenna 4860, Macul, Santiago|
Phone: (562) 354-4303
Fax: (562) 553-1664
Web page: http://www.economia.uc.cl
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- Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
- Montero, Juan-Pablo, 1998. "Marketable pollution permits with uncertainty and transaction costs," Resource and Energy Economics, Elsevier, vol. 20(1), pages 27-50, March.
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