This draft discusses the main instruments to mitigate environmental externalities, considering both the traditional goals of efficiency and equity and restrictions on information and technical and political feasibility. It is analyzed the program "Pico y Placa" in Medellín, a restricting...

En Medellín es urgente insistir en soluciones inteligentes, con más alternativas de transporte masivo. Las actuales, que son lentas como el tranvía, y equivocadas como el metroplús, resultan dañinas para el ambiente.

General equilibrium models focus on the analysis of the difference between the allocation of efficiency and market equilibrium in the presence of environmental externalities affecting different sectors, as well as on the effectiveness of policy instruments. These approaches agree on economic...