Policy Instruments for Pollution Control in Developing Countries.

What are appropriate strategies for protecting the environment in developing countries that also seek to promote growth and reduce poverty? This article reviews the literature on cost-effective intervention, comparing regulatory and fiscal instruments that can be attuned to the purpose of reducing pollution. The authors look at what happens when developing country ingredients are introduced into the standard policy problem, and show how indirect instruments can be effective when monitoring and enforcement are costly. They discuss distributive concerns for two reasons: The effect on the poor may need particular consideration for equity reasons, and the effect on groups with vested interests can determine whether reforms are likely to stand or fall. Copyright 1992 by Oxford University Press.