IDEAS home Printed from https://ideas.repec.org/p/ags/nceewp/280804.html
   My bibliography  Save this paper

Market-Based Policies for Pollution Control in Latin America

Author

Listed:
  • West, Sarah
  • Wolverton, Ann

Abstract

Rapid urbanization and increased industrialization have led to high pollution levels throughout Latin America. Economists tout policies based on market-based economic incentives as the most cost-effective methods for addressing a wide variety of environmental problems. This chapter examines market-based incentives and their applicability to Latin America. We first review the market-based incentives traditionally used to address pollution – emissions taxes, environmental subsidies, tax and subsidy combinations, tradable pollution permits, and hybrid instruments – and compare these instruments to command-and-control policies. We then discuss two sets of factors that affect how feasible and efficient pollution control policy will be in Latin America. We focus on practical considerations such as monitoring and enforcement, distributional issues, political feasibility, institutional considerations, administrative costs, and compliance costs. We also examine what the violation of standard modeling assumptions implies for the success of pollution control policy. In particular, we focus on noncompetitive market structures, imperfect information or uncertainty, the effects of regulation on global competitiveness, and the compatibility of environmental goals with the goals of growth and development. Finally, we compare Latin American experiences with market-based incentives with those in the U.S. and Europe, and conclude with several policy recommendations.

Suggested Citation

Handle: RePEc:ags:nceewp:280804
DOI: 10.22004/ag.econ.280804
as

Download full text from publisher

File URL: https://ageconsearch.umn.edu/record/280804/files/NCEE2003-01.pdf
Download Restriction: no

File URL: https://libkey.io/10.22004/ag.econ.280804?utm_source=ideas
LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
---><---

Corrections

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nceewp:280804. See general information about how to correct material in RePEc.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

We have no bibliographic references for this item. You can help adding them by using this form .

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/nepgvus.html .

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.