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Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile
Jessica Coria, Thomas Sterner
RFF Discussion Paper 08-51 | December 2008
RESEARCH TOPICS:
Abstract
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 ten years, stressing its similarities and discrepancies with trading programs implemented in developed countries, and analyzing how it has reacted to regulatory adjustments and market shocks. Studying Santiago’sexperience allows us to discuss the drawbacks and advantages of applying tradable permits in less developed countries.
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