Estudios de economía
versión On-line ISSN 0718-5286
CLERGER, Gaspard; CHAVEZ, Carlos; VILLENA, Mauricio y GOMEZ, Walter. COMPLIANCE COSTS OF ENVIRONMENTAL REGULATION WITH INCOMPLETE INFORMATION: APPLICATION TO FIXED SOURCES OF PCE IN SANTIAGO, CHILE. Estudios de Economía [online]. 2009, vol.36, n.2, pp. 165-190. ISSN 0718-5286. http://dx.doi.org/10.4067/S0718-52862009000200002.
We study the cost-effectiveness of a transferable emissions permit system (TEPS) vis a vis a system of emissions standards. Our analysis includes along with abatement costs, the costs of enforcing the system to induce compliance. Further, the analysis considers complete and incomplete information. The numerical simulations are performe for the case of fixed sources operating under the Emissions Compensation Program (ECP) in Santiago, Chile. The results suggest that a TEPS is not oble to induce compliance at minimum enforcement costs, but this regulatory system allow the regulator to achieve the environmental target with minimum aggregate compliance costs.
Palabras clave : Environmental policy; cost-effectiveness; enforcement costs; incomplete information.