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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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  • 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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    1. Ian W.H. Parry, 2002. "A Second-Best Analysis of Environmental Subsidies," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 28, pages 555-572, Edward Elgar Publishing.
    2. Salvatore Ercolano & Oriana Romano, 2018. "Spending for the Environment: General Government Expenditure Trends in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 1145-1169, August.
    3. Galina Chebotareva & Inna Čábelková & Wadim Strielkowski & Luboš Smutka & Anna Zielińska-Chmielewska & Stanislaw Bielski, 2023. "The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency," Energies, MDPI, vol. 16(12), pages 1-26, June.
    4. 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.
    5. 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.
    6. 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.
    7. H. Landis Gabel & Bernard Sinclair‐Désgagné, 1994. "From market failure to organisational failure," Business Strategy and the Environment, Wiley Blackwell, vol. 3(2), pages 50-58.

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