IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v39y2007i19p2465-2482.html
   My bibliography  Save this article

Determining the environmental effects of indirect subsidies: integrated method and application to the Netherlands

Author

Listed:
  • Cees van Beers
  • Jeroen C. J. M. van den Bergh
  • Andre de Moor
  • Frans Oosterhuis

Abstract

The term 'environmentally damaging subsidies' covers all sorts of direct and indirect subsidies with negative consequences for the environment. This article presents a method to determine the environmental impact of these subsidies. It combines a microeconomic framework with an environmental impact module. The method is particularly useful for analysing indirect subsidies. These are often hidden, and therefore, not recognized as subsidies. Use of the method will provide a basis for formulating corrective policy. The method is applied to several important subsidies in the Netherlands, in agriculture, energy and transport sectors. The results reveal large environmental effects, which deserve serious attention from policy makers. To illustrate the specific features of the method, its application to a particular subsidy, namely the exemption of excise taxes on aviation fuels, is presented in full detail.

Suggested Citation

  • Cees van Beers & Jeroen C. J. M. van den Bergh & Andre de Moor & Frans Oosterhuis, 2007. "Determining the environmental effects of indirect subsidies: integrated method and application to the Netherlands," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2465-2482.
    • Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2465-2482
    DOI: 10.1080/00036840600592833
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592833
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840600592833?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Martijn Brons & Eric Pels & Peter Nijkamp & Piet Rietveld, 2001. "Price Elasticities of Demand for Passenger Air Travel," Tinbergen Institute Discussion Papers 01-047/3, Tinbergen Institute.
    2. Cees van Beers & André de Moor, 2001. "Public Subsidies and Policy Failures," Books, Edward Elgar Publishing, number 2040.
    3. Tae H. Oum & Waters, W.G. & Jong Say Yong, 1990. "A survey of recent estimates of price elasticities of demand for transport," Policy Research Working Paper Series 359, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diaz Arias, Adriana & van Beers, Cees, 2013. "Energy subsidies, structure of electricity prices and technological change of energy use," Energy Economics, Elsevier, vol. 40(C), pages 495-502.
    2. Marie-Estelle Binet & Lionel Richefort, 2011. "Diffusion of irrigation technologies: the role of mimicking behaviour and public incentives," Applied Economics Letters, Taylor & Francis Journals, vol. 18(1), pages 43-48.
    3. Stefan Gössling & Frank Fichert & Peter Forsyth, 2017. "Subsidies in Aviation," Sustainability, MDPI, vol. 9(8), pages 1-19, July.
    4. Cansino, José M. & Pablo-Romero, María del P. & Román, Rocío & Yñiguez, Rocío, 2010. "Tax incentives to promote green electricity: An overview of EU-27 countries," Energy Policy, Elsevier, vol. 38(10), pages 6000-6008, October.
    5. Ming-Chung Chang & Jin-Li Hu, 2009. "Inconsistent preferences in environmental protection investment and the central government's optimal policy," Applied Economics, Taylor & Francis Journals, vol. 43(6), pages 767-772.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karen Mayor & Richard S.J. Tol, 2007. "The Impact of the EU-US Open Skies Agreement on International Travel and Carbon Dioxide Emissions," Papers WP191, Economic and Social Research Institute (ESRI).
    2. Bridgelall, Raj & Stubbing, Edward, 2021. "Forecasting the effects of autonomous vehicles on land use," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    3. Stefan Gössling & Frank Fichert & Peter Forsyth, 2017. "Subsidies in Aviation," Sustainability, MDPI, vol. 9(8), pages 1-19, July.
    4. Ant—nio Afonso & Ludger Schuknecht & Vito Tanzi, 2023. "The size of government," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 1, pages 6-31, Edward Elgar Publishing.
    5. Ivaldi, Marc & Vibes, Catherine, 2005. "Intermodal and Intramodal Competition in Passenger Rail Transport," CEPR Discussion Papers 5004, C.E.P.R. Discussion Papers.
    6. Stefan F. Schubert & Juan Gabriel Brida, 2008. "Dynamic Effects of Subsidizing the Tourism Sector," Tourism Economics, , vol. 14(1), pages 57-80, March.
    7. Lu, Cherie, 2009. "The implications of environmental costs on air passenger demand for different airline business models," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 158-165.
    8. Mohammad Mazraati & Osama M. Alyousif, 2009. "Aviation fuel demand modelling in OECD and developing countries: impacts of fuel efficiency," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 33(1), pages 23-46, March.
    9. Florian Hofbauer & Lisa-Maria Putz, 2020. "External Costs in Inland Waterway Transport: An Analysis of External Cost Categories and Calculation Methods," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    10. Swait, Joffre & Eskeland, Gunnar S., 1995. "Travel mode substitution in Sao Paulo : estimates and implications for air pollution control," Policy Research Working Paper Series 1437, The World Bank.
    11. Mancuso, Paolo, 2014. "An analysis of the competition that impinges on the Milan–Rome intercity passenger transport link," Transport Policy, Elsevier, vol. 32(C), pages 42-52.
    12. Fouquet, Roger, 2012. "Trends in income and price elasticities of transport demand (1850–2010)," Energy Policy, Elsevier, vol. 50(C), pages 62-71.
    13. Russo, Francesco & Musolino, Giuseppe, 2013. "Estimating demand variables of maritime container transport: An aggregate procedure for the Mediterranean area," Research in Transportation Economics, Elsevier, vol. 42(1), pages 38-49.
    14. World Bank, 2013. "Republic of Armenia : Accumulation, Competition, and Connectivity," World Bank Publications - Reports 16781, The World Bank Group.
    15. Rich, J. & Kveiborg, O. & Hansen, C.O., 2011. "On structural inelasticity of modal substitution in freight transport," Journal of Transport Geography, Elsevier, vol. 19(1), pages 134-146.
    16. Taylor, Richard D. & Koo, Won W., 2009. "Expected Changes in China's Grain and Oilseed Industries and Implications for the U.S. and World Agriculture," Agribusiness & Applied Economics Report 51991, North Dakota State University, Department of Agribusiness and Applied Economics.
    17. Yuen, Andrew & Zhang, Anming & Hui, Yer Van & Leung, Lawrence C. & Fung, Michael, 2017. "Is developing air cargo airports in the hinterland the way of the future?," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 15-25.
    18. Ming-Chung Chang & Jin-Li Hu, 2009. "Inconsistent preferences in environmental protection investment and the central government's optimal policy," Applied Economics, Taylor & Francis Journals, vol. 43(6), pages 767-772.
    19. David Anthoff & Robert Hahn, 2010. "Government failure and market failure: on the inefficiency of environmental and energy policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 26(2), pages 197-224, Summer.
    20. Ramón López, 2005. "Under‐investing in public goods: evidence, causes, and consequences for agricultural development, equity, and the environment," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 211-224, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2465-2482. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.