Sound public policy addresses externalities directly, when possible. Air pollution is best alleviated by policy instruments that internalize the social cost of pollution, making it attractive to reduce emissions. One such instrument might be a tax levied on individual emissions, if they are...

¿Cuáles son las estrategias apropiadas para proteger el ambiente en países en desarrollo que al mismo tiempo buscan promover el crecimiento y reducir la pobreza? Este artículo revisa la literatura acerca de la intervención costoefectiva,2 comparando los instrumentos regulatorios y fiscales...

This paper presents the design of cost effective interventions to protect the environment from excessive pollution in developing countries. The concept of intervention is motivated by the typical explanation for environmental problems in economic theory--external effects. The aim of the paper is...