Analysis and evaluation of economic policy instruments for environmental control in Mexico

Abstract : The sustainability or water resources in Mexico is challenged, among other things, by inadequate regulation tools, limited enforcement capacity, and the uncertainty related to climate change. This thesis analyses key aspects of these challenges with the overall objective of contributing to the economic literature and providing inputs for evidence based policy making. The thesis is composed of three chapters. The first chapter looks at the mechanisms regulating groundwater extraction. In particular, it analyses the distortion caused by electricity subsidies and their effects on groundwater overdraft. It contributes to the existing literature by providing estimates on cross-price elasticities related to irrigation water demand in Mexico. The results of this chapter show that changes in the price of ground water not only affect the amount of water pumped, but also the allocation of labour and fertilizers. The second chapter studies the effects of environmental inspections on illegal water extraction across Mexican municipalities. Results show that the main inspection program led by Mexico's water agency does have an impact on the number of irrigators extracting water without a valid concession. However, further efforts improving the capacity of regional offices are required for this program to have a substantive effect on water sustainability. Finally, the third chapter addresses some of the concerns related to climate change by analyzing the effects of droughts and floods on internal migration trends in Mexico. Results show that both droughts and floods act as push factors for internal migration. In addition, results also show that income differential, murders, and educational attainments are key drivers for internal migration in the country.
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José Vicente Ruiz Arredondo. Analysis and evaluation of economic policy instruments for environmental control in Mexico. Economics and Finance. Université Panthéon-Sorbonne - Paris I, 2016. English. ⟨NNT : 2016PA01E021⟩. ⟨tel-01800103⟩

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