Environmental Regulations and Corruption: Automobile Emissions in Mexico City

S-Tier
Journal: Journal of Political Economy
Year: 2015
Volume: 123
Issue: 3
Pages: 686 - 724

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Emission regulations become more prevalent in developing countries, but they may be compromised by corruption. This paper documents the prevalence of corruption and the effectiveness of vehicle emission regulations in Mexico City. I develop a statistical test for identifying a specific type of cheating that involves bribing center technicians. I also estimate a structural model of car owner retesting and cheating decisions. Results suggest that 9.6 percent of car owners paid US$20 to circumvent the regulation. Eliminating cheating and increasing the cost of retests would reduce emissions by 3,708 tons at a high cost for vehicle owners.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/680936
Journal Field
General
Author Count
1
Added to Database
2026-01-26