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

Peer Reviewed
1 January 2010

Journal of Environment and Development

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 10 years, stressing its similarities and discrepancies with trading programs 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.

 

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Publication | 29 November 2010