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This paper explores the environmental regime in developing countries. By regime, we mean those environmental externalities that are commonly found in the developing world, along with the policy responses, if any, to them. Included are the direct effects of industrial emissions, air-and waterquality impacts of untreated waste (industrial and human), congestion effects of traffic, soil erosion, and open-access resource problems (including forests).

We note the many difficulties involved with adequately characterizing this regime, not the least of which is the heterogeneity across both environmental problems and policy responses in the developing world. Enforcement and compliance (which are typically lax in developing countries) also play a central role in defining this regime. In addition, we note the differences between the experiences of developed and developing countries more generally beyond the environmental …