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Public expenditure policy and the environment: A review and synthesis

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  • Gupta, Sanjeev
  • Miranda, Kenneth
  • Parry, Ian

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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Suggested Citation

  • Gupta, Sanjeev & Miranda, Kenneth & Parry, Ian, 1995. "Public expenditure policy and the environment: A review and synthesis," World Development, Elsevier, vol. 23(3), pages 515-528, March.
  • Handle: RePEc:eee:wdevel:v:23:y:1995:i:3:p:515-528
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    References listed on IDEAS

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    1. Daly, Herman E., 1987. "The economic growth debate: What some economists have learned but many have not," Journal of Environmental Economics and Management, Elsevier, vol. 14(4), pages 323-336, December.
    2. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808.
    3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
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    Cited by:

    1. Ian Parry, 1998. "A Second-Best Analysis of Environmental Subsidies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 5(2), pages 153-170, May.
    2. Jussi LANKOSKI, 1997. "Environmental Effects Of Agricultural Trade Liberalization And Domestic Agricultural Policy Reforms," UNCTAD Discussion Papers 126, United Nations Conference on Trade and Development.
    3. Villamor, Grace B., 2006. "The rise of protected area policy in the Philippine forest policy: An analysis from the perspective of Advocacy Coalition Framework (ACF)," Forest Policy and Economics, Elsevier, vol. 9(2), pages 162-178, November.
    4. Lu, Hongyou & Xu, Wenli & Xu, Kun, 2016. "How to Make The Fiscal policies Greener in China?——Based on The Perspective of Environmental Macroeconomics," MPRA Paper 70221, University Library of Munich, Germany.

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