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Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile

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  • Coria, Jessica
  • Sterner, Thomas

Abstract

Santiago was one of the first cities outside the OECD to implement a tradable permit program to control air pollution. This paper looks closely at the program’s performance over the past ten years, stressing its similarities and discrepancies with trading programs implemented in developed countries, and analyzing how it has reacted to regulatory adjustments and market shocks. Studying Santiago’s experience allows us to discuss the drawbacks and advantages of applying tradable permits in less developed countries.

Suggested Citation

  • Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile," Discussion Papers dp-08-34-efd, Resources For the Future.
  • Handle: RePEc:rff:dpaper:dp-08-34-efd
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Lecuyer, Oskar & Quirion, Philippe, 2013. "Can uncertainty justify overlapping policy instruments to mitigate emissions?," Ecological Economics, Elsevier, vol. 93(C), pages 177-191.
    2. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2015. "Networked Leaders in the Shadow of the Market – A Chinese Experiment in Allocating Land Conversion Rights," Working Papers 250022, Cornell University, Department of Applied Economics and Management.
    3. Coria, Jessica & Löfgren, Åsa & Sterner, Thomas, 2009. "To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile," Working Papers in Economics 390, University of Gothenburg, Department of Economics.
    4. Sijeong Lim & Victor Menaldo & Aseem Prakash, 2015. "Foreign aid, economic globalization, and pollution," Policy Sciences, Springer;Society of Policy Sciences, vol. 48(2), pages 181-205, June.
    5. Coria, Jessica & Villegas-Palacio, Clara & Cárdenas, J.C., 2012. "Why Do Environmental Taxes Work Better in Developed Countries?," Working Papers in Economics 521, University of Gothenburg, Department of Economics.
    6. Coria, Jessica, 2008. "Environmental Policy, Fuel Prices, and the Switch to Natural Gas in Santiago, Chile," Discussion Papers dp-08-28-efd, Resources For the Future.
    7. Coria, Jessica & Villegas-Palacio, Clara, 2010. "Targeted Enforcement and Aggregate Emissions With Uniform Emission Taxes," Working Papers in Economics 455, University of Gothenburg, Department of Economics.
    8. Chau, Nancy H. & Qin, Yu & Zhang, Weiwen, 2016. "Leader Networks and Transaction Costs: A Chinese Experiment in Interjurisdictional Contracting," IZA Discussion Papers 9641, Institute for the Study of Labor (IZA).
    9. Coria, Jessica & Villegas-Palacio, Clara & Cárdenas, Juan Camilo, 2011. "Should we tax or let firms trade emissons? An experimental analysis with policy implications for developing countries," Working Papers in Economics 516, University of Gothenburg, Department of Economics.
    10. Coria, Jessica, 2009. "Environmental policy, fuel prices and the switching to natural gas in Santiago, Chile," Ecological Economics, Elsevier, vol. 68(11), pages 2877-2884, September.
    11. Escobar, Ninel & Chávez, Carlos, 2013. "Monitoring, firms’ compliance and imposition of fines: evidence from the Federal Industrial Inspection Program in Mexico City," Environment and Development Economics, Cambridge University Press, vol. 18(06), pages 723-748, December.
    12. Caffera, Marcelo, 2011. "The use of economic instruments for pollution control in Latin America: lessons for future policy design," Environment and Development Economics, Cambridge University Press, vol. 16(03), pages 247-273, June.
    13. Oskar Lecuyer & Philippe Quirion, 2012. "Can Uncertainty Justify Overlapping Policy Instruments to Mitigate Emissions ?," Working Papers hal-00866440, HAL.
    14. Gautier Kohler & Benoit Lefèvre;, 2011. "A comparative analysis of city-based emission trading schemes: key design and management factors for environmental cost effectiveness," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 35(2/3/4), pages 215-241.

    More about this item

    Keywords

    Air pollution; environmental policy; tradable permits; developing countries;

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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