Market-based Instruments for Environmental Policymaking in Latin America and the Caribbean: Lessons from Eleven Countries

by Richard M. Huber; Jack Ruitenbeek; Ronaldo Motta

Nov 30, 1998
This report is a summary of country studies in Latin America and the Caribbean, addressing the use of market-based instruments (MBIs) and command-and-control (CAC) measures for environmental management in the region. Even though MBIs can significantly add efficiency to existing CAC mechanisms, the scope of MBIs should match the countries institutional capacity to implement them. Gradual and flexible reforms are likely to succeed within the current regional context of continued institutional changes. A key function of MBIs is usually revenue collection, though it does not necessarily lead to successful environmental management. The study suggests that revenues should be channeled to local authorities for an effective MBI's implementation. The report also critiques the regular practice of international donor agencies in recommending the solutions suitable for developed countries, without considering the institutional conditions in developing countries. Further, the study explores both the successes and difficulties experienced in the region regarding regulations, macro-policies, and MBIs; the institutional frameworks of the countries under review; and, the issues considered in the design of MBIs, in order to promote a beneficial dialogue among them.


Powered by Foundation Center's Knowledge Center Service