Motu and partners were contracted by the World Bank through its Partnership for Market Readiness (PMR) initiative to “Draft a proposal for the implementation in Chile of a Greenhouse Gas Emissions Trading System (ETS)”. The specific objective in the terms of reference is to “Propose a...

We evaluate the performance of an environmental market in a less developed country based on the experience from Santiago-Chile's particulate matter control program. We find that grandfathering the permits has created economic incentives for incumbent sources to more readily declare their...