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Public Expenditure Policy and the Environment; A Review and Synthesis

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

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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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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  1. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808, March.
  2. 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.
  3. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, May.
  4. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120, May.
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