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Public Expenditure Policy and the Environment

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  • Kenneth M. Miranda
  • Ian W.H. Parry
  • Sanjeev Gupta

Abstract

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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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 93/27.

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Length: 42
Date of creation: 01 Mar 1993
Date of revision:
Handle: RePEc:imf:imfwpa:93/27

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Related research

Keywords: Government expenditures; Environment; Subsidies; subsidy; environmental degradation; environmental policy; environmental problems; energy subsidies; input subsidies; environmental costs; environmental instruments; global warming; environmental damage; environmental concerns; safety net; subsidization; subsidizing; environmental implications; environmental externalities; electricity subsidies; social safety net; environmental effects; vulnerable population; environmental aspects; environmentalists; 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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