Technical Notes

Mitigation of Local Pollution and Climate Change in Latin America and the Caribbean: Costs and Synergies

AUTHOR(s): Clerc, Jacques , Diaz, Manuel
RELATED TOPICS: Microeconomics


The overall purpose of this study is to analyze the synergies of environmental mitigation initiatives in practice, based on the approach proposed by Muller and Mendelsohn (2011). According to this methodology, externalities associated with local pollutants are measured using the impact pathway approach. The main local benefits to be derived from applying mitigation measures are the impacts on health and agriculture. This paper provides a conceptual review of the Muller-Mendelsohn model and the externality assessment theory. It then presents and explains the impact pathway methodology, revealing a specific model for its application in Chile. The paper’s purpose is to extend that methodology to other contexts, particularly the Latin American context. For that reason, explanations regarding information requirements and how they are used are included at each stage of the methodology. Finally, several indicators are presented so as to be interpreted in a mitigation analysis.

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