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Perseverance of perverse subsidies and their impact on trade and environment

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  • van Beers, Cees
  • van den Bergh, Jeroen C. J. M.

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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Suggested Citation

  • van Beers, Cees & van den Bergh, Jeroen C. J. M., 2001. "Perseverance of perverse subsidies and their impact on trade and environment," Ecological Economics, Elsevier, vol. 36(3), pages 475-486, March.
    • Handle: RePEc:eee:ecolec:v:36:y:2001:i:3:p:475-486
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    1. Alan M. Rugman & John J. Kirton & Julie A. Soloway (ed.), 1998. "Trade and the Environment," Books, Edward Elgar Publishing, number 1339.
    2. repec:wbk:wbpubs:5975 is not listed on IDEAS
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    5. Ian W.H. Parry & Antonio M. Bento, 2002. "Tax Deductions, Environmental Policy, and the "Double Dividend" Hypothesis," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 22, pages 397-426, Edward Elgar Publishing.
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