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Perseverance of Perverse Subsidies and their Impact on Trade and the Environment

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Author Info

  • Cees van Beers

    (Delft University of Technology)

  • Jeroen C.J.M. van den Bergh

    ()
    (Vrije Universiteit Amsterdam)

Abstract

Theoretical and empirical aspects of policy failures due to subsidies are discussed in the context of international trade. A general classification of subsidies that cause environmental externalities is presented. The economic and environmental impacts of producer subsidies on international trade are examined with partial equilibrium analysis. The magnitude and economic and environmental relevance of subsidies in various sectors is assessed on the basis of empirical indicators. Finally, suggestions are provided on how subsidy-related policy failures can be eliminated at national and international levels. This discussion paper has resulted in a publication in Ecological Economics , 2001, 36(3), 475-86.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 00-005/3.

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Date of creation: 10 Feb 2000
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Handle: RePEc:dgr:uvatin:20000005

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Web page: http://www.tinbergen.nl

Related research

Keywords: Environmental policy; Trade policy; Perverse subsidies; International institutions; International agreements; Policy failures; International trade; Environmentally damaging subsidies;

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Cited by:
  1. Schmid, Erwin & Sinabell, Franz & Hofreither, Markus F., 2007. "Phasing out of environmentally harmful subsidies: Consequences of the 2003 CAP reform," Ecological Economics, Elsevier, vol. 60(3), pages 596-604, January.

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