Private Enforcement of Environmental Regulations in Latin America and the Caribbean: An Effective Instrument for Environmental Management?

While the role of nongovernmental organizations in environmental policy is growing rapidly, our analytical understanding of the causes and consequences of this emerging role has not kept pace. And yet our ability to define an appropriate relationship between these private sector organizations and the public sector depends on this knowledge. The purpose of this research is to explore one facet of the participation of nongovernmental organizations in environmental policy -private enforcement- and to develop a practical set of recommendations on whether and how to incorporate private enforcement in Bank projects and programs. The study analyzes the potential role of private environmental enforcement in enhancing environmental quality and identifies possible ways and means for potential Bank involvement in this area. The economic models in this paper show how the varying remedies, limitations, and reimbursement procedures can affect both the level and patterns of private enforcement activity as well as the environmental and economic consequences.