A Market-Based Environmental Policy Experiment in Chile

Juan-Pablo Montero, José Sánchez () and Ricardo Katz

No 192, Documentos de Trabajo from Instituto de Economia. Pontificia Universidad Católica de Chile.

Abstract: 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: 2000
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Citations: View citations in EconPapers (8)

Published as "A Market-Based Environmental Policy Experiment in Chile", Journal of Law and Economics, Vol. 45, 267-287, 2002.

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Journal Article: A Market-Based Environmental Policy Experiment in Chile (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ioe:doctra:192

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