Economic Incentives for Pollution Control in Developing Countries: What Can We Learn from the Empirical Literature?

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EfD Authors:

This review seeks to analyze the implementation of Market Based Instruments (MBIs) in developing countries.

The focus is mostly (but not exclusively) on the empirical literature. The evidence is that MBIs have played a role in pollution reduction. However, this conclusion is mostly based on evidence from one country – China. Moreover, these tools seem to be used in conjunction with command and control instruments.

Agriculture, Policy Design

Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden

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In this paper, we explore the synergies and tradeoffs between abatement of global and local pollution. We built a unique dataset of Swedish heat and power plants with detailed boiler-level data 2001-2009 on not only production and inputs but also emissions of CO2 and NOx.

Climate Change, Policy Design

Voluntary Environmental Agreements in Developing Countries: The Colombian Experience

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According to proponents, voluntary agreements (VAs) negotiated with polluters sidestep weak institutions and other barriers to conventional environmental regulation in developing countries. Yet little is known about their effectiveness.

Policy Design

Valuing the Health Risks of Particulate Air Pollution in the Pearl River Delta, China

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The Pearl River Delta (PRD) in Southern China is a region where the manufacturing industry is rapidly developing, accounting for about 10% of the gross domestic product (GDP) with 4% of China’s population.

Experiments

What Drives Voluntary Eco-Certification in Mexico?

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Advocates claim that voluntary programs can help shore up poorly performing command-and-control environmental regulation in developing countries. Although literature on this issue is quite thin, research on voluntary environmental programs in industrialized countries suggests that they are sometimes ineffective because they mainly attract relatively clean plants free-riding on prior pollution control investments.

Policy Design

Does Disclosure Reduce Pollution? Evidence from India’s Green Rating Project

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Public disclosure programs that collect and disseminate information about firms’ environmental performance are increasingly popular in both developed and developing countries. Yet little is known about whether they actually improve environmental performance, particularly in the latter setting.

Agriculture, Policy Design

Environmental and development issues in Latin America: moving forward

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Economists in Latin America are moving beyond the prevailing ‘macro’ orientation of their research focusing more on questions linked to development and the use and management of the environmental resource base in the region.

Experiments, Policy Design

Environmental and Development Issues in Latin America: Moving Forward

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For the most part, economic research in Latin America has had a ‘macro’ orientation (e.g., economic growth, monetary and fiscal policy, hyperinflation crisis). This is perfectly understandable because of the macro instability that has affected the entire region for decades and that still remains in many places.

Experiments, Policy Design

Health Impacts of Power-Exporting Plants in Northern Mexico

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EfD Authors:

In the past two decades, rapid population and economic growth on the U.S.–Mexico border has spurred a dramatic increase in electricity demand. In response, American energy multinationals have built power plants just south of the border that export most of their electricity to the United States. This development has stirred considerable controversy because these plants effectively skirt U.S. environmental air pollution regulations in a severely degraded international airshed.

Energy, Policy Design