Public Expenditure Policy and the Environment
Commonly cited environmental instruments in the legal, regulatory, and fiscal domains are intended primarily to address market failures to ensure that environmental degradation and resource use is contained to appropriate levels. However, in many instances, environmental degradation is rooted not in market failure, but rather in policy failure. This paper identifies areas of public expenditure policy that interact with the environment. It argues that a reform of certain types of subsidies, increased operations and maintenance expenditures, and a thorough environmental assessment of capital projects will tend to benefit the environment, thereby moving an economy towards ‘sustainable’ development.
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Paper provided by International Monetary Fund in its series IMF Working Papers
Date of creation:
01 Mar 1993Date of revision:
Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC
Related researchKeywords: Government expenditures
; environmental degradation
; environmental policy
; environmental problems
; energy subsidies
; input subsidies
; environmental costs
; environmental instruments
; global warming
; environmental damage
; environmental concerns
; safety net
; environmental implications
; environmental externalities
; electricity subsidies
; social safety net
; environmental effects
; vulnerable population
; environmental aspects
; environmental consequences
; environmental economics
; pollution permits
; adverse environmental implications
; credit subsidy
; environmental gains
; environmental benefits
; environmental impacts
; indirect subsidies
; environmental issues
; gasoline taxes
; environmental protection
; environmental incentives
; natural resources
; environmental problem
; industrial pollution
; adverse environmental consequences
; environmental policies
; environmental assessment
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