Evaluating the use of “free market” policies to protect the environment in Peru: plastic bags, civil liability, and urban planning

This paper discusses the concept of free-market environmentalism and its implementation in Peru. The article starts by explaining the two competing ways of understanding humanity's role in preserving the environment-the Malthusian and Promethean approaches. Then, the trend of leftist policies depending on prohibitions and the state of human rights in environmental issues is discussed. The paper also argues the importance of the objective of environmental protection which is not necessarily related to the specific tools to reach it. Authors suggest that free-market environmentalism, which advocates for the use of mechanisms based on the market, such as property rights and price systems, may be an effective alternative to the traditional command-and-control regulations. It also analyzed three examples of free-market environmentalism in Peru: the use of plastic bags, civil responsibility for environmental damages, and the transferable construction rights for environmental protection on urban planning. The authors also make a regulatory impact assessment to determine the compatibility of each case with the economic principles concluding that they are not perfect but note the necessity of incorporating a free-market mentality on the formulation of public policies in Peru, particularly the ones related to environmental protection.