Is it wise to combine environmental and labour market policies? An analysis of a Swedish subsidy programme
In 1998 the Swedish government launched its largest ecological subsidization programme to date, the Local Investment Programme (LIP). By having two political objectives; to step up the pace at which Sweden transforms into an ecologically sustainable society and to reduce unemployment, the programme did not conform to the [modifier letter reversed comma][modifier letter reversed comma]one-instrument-per-objective" policy guideline often advocated by economists. Concentrating on a subset of the subsidized projects, the projects for remediation of contaminated sites, we evaluate how effectively the LIP's separate political objectives were fulfilled. Between 1998 and 2002, [euro] 670Â million (SEK 6.2Â billion) were allocated to over 1800 different projects under the LIP. Twenty-four, i.e. one percent, of the projects aimed at remediation of contaminated sites. These projects received a disproportionate amount, six percent, of the total LIP subsidies. By using data on both accepted and rejected remediation projects, we find that the LIP's ecological sustainability objective could have been achieved better if the most hazardous sites had been prioritized to a greater extent. Furthermore, society's cost for the employment opportunities generated in the remediation projects was higher than society's cost for the equivalent number of employment opportunities generated in traditional labour market policies. Although other subsets of the LIP projects may have been more successful in achieving the programme's separate objectives, our results illustrate inefficiencies that may arise from a desire to attain several political objectives through a single policy instrument.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
- James T. Hamilton & W. Kip Viscusi, 1999. "Calculating Risks?: The Spatial and Political Dimensions of Hazardous Waste Policy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262082780, January.
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, December.
- Cropper, Maureen L. & William N. Evans & Stephen J. Berard & Maria M. Ducla-Soares & Paul R. Portney, 1992. "The Determinants of Pesticide Regulation: A Statistical Analysis of EPA Decision Making," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 175-197, February.
- Dahlberg, M. & Johansson, E., 1999.
"On the Vote Purchasing Behavior of Incumbent Governments,"
1999:24, Uppsala - Working Paper Series.
- Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
- Lin, Tsai-Fen & Schmidt, Peter, 1984. "A Test of the Tobit Specification against an Alternative Suggested by Cragg," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 174-177, February.
- Johansson, Eva, 2003. "Intergovernmental grants as a tactical instrument: empirical evidence from Swedish municipalities," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 883-915, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:65:y:2008:i:3:p:547-558. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.