A market-based environmental policy experiment in Chile
Despite growing interest in the use of emissions trading for pollution control, empirical evidence for this regulatory instrument has been confined to a few experiences in the United States. This paper broadens the empirical base by examining the "Emission-Offsets Trading Program" that has...
| Main Authors: | , , |
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| Other Authors: | |
| Format: | Working Paper |
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MIT Center for Energy and Environmental Policy Research
2009
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| Online Access: | http://hdl.handle.net/1721.1/44969 |
| _version_ | 1811090155740594176 |
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| author | Montero, Juan-Pablo Katz, Ricardo Santiago Sánchez, José Miguel |
| author2 | Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. |
| author_facet | Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. Montero, Juan-Pablo Katz, Ricardo Santiago Sánchez, José Miguel |
| author_sort | Montero, Juan-Pablo |
| collection | MIT |
| description | Despite growing interest in the use of emissions trading for pollution control, empirical evidence for this regulatory instrument has been confined to a few experiences in the United States. This paper broadens the empirical base by examining the "Emission-Offsets Trading Program" that has been in place since 1992 to control airborne particulate emissions in Santiago, Chile. While the program is doing well from an environmental perspective, due in part to the price-based introduction of natural gas, the market is performing poorly because of high transaction costs, uncertainty, and poor enforcement. However, the scarcity rents created by allocating grandfathered emission rights to incumbents have proved to be a very effective tool for completing the emissions inventory. |
| first_indexed | 2024-09-23T14:35:33Z |
| format | Working Paper |
| id | mit-1721.1/44969 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T14:35:33Z |
| publishDate | 2009 |
| publisher | MIT Center for Energy and Environmental Policy Research |
| record_format | dspace |
| spelling | mit-1721.1/449692019-04-12T09:55:40Z A market-based environmental policy experiment in Chile Montero, Juan-Pablo Katz, Ricardo Santiago Sánchez, José Miguel Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research. Despite growing interest in the use of emissions trading for pollution control, empirical evidence for this regulatory instrument has been confined to a few experiences in the United States. This paper broadens the empirical base by examining the "Emission-Offsets Trading Program" that has been in place since 1992 to control airborne particulate emissions in Santiago, Chile. While the program is doing well from an environmental perspective, due in part to the price-based introduction of natural gas, the market is performing poorly because of high transaction costs, uncertainty, and poor enforcement. However, the scarcity rents created by allocating grandfathered emission rights to incumbents have proved to be a very effective tool for completing the emissions inventory. Supported by the MIT Center for Energy and Environmental Policy Research. 2009-04-03T17:04:30Z 2009-04-03T17:04:30Z 2000 Working Paper 2000-005 http://hdl.handle.net/1721.1/44969 52316162 MIT-CEEPR (Series) ; 00-005WP. 28 p application/pdf MIT Center for Energy and Environmental Policy Research |
| spellingShingle | Montero, Juan-Pablo Katz, Ricardo Santiago Sánchez, José Miguel A market-based environmental policy experiment in Chile |
| title | A market-based environmental policy experiment in Chile |
| title_full | A market-based environmental policy experiment in Chile |
| title_fullStr | A market-based environmental policy experiment in Chile |
| title_full_unstemmed | A market-based environmental policy experiment in Chile |
| title_short | A market-based environmental policy experiment in Chile |
| title_sort | market based environmental policy experiment in chile |
| url | http://hdl.handle.net/1721.1/44969 |
| work_keys_str_mv | AT monterojuanpablo amarketbasedenvironmentalpolicyexperimentinchile AT katzricardosantiago amarketbasedenvironmentalpolicyexperimentinchile AT sanchezjosemiguel amarketbasedenvironmentalpolicyexperimentinchile AT monterojuanpablo marketbasedenvironmentalpolicyexperimentinchile AT katzricardosantiago marketbasedenvironmentalpolicyexperimentinchile AT sanchezjosemiguel marketbasedenvironmentalpolicyexperimentinchile |