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Incentives and outcomes: Evaluation of a Swedish environmental subsidy programme

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  • Maria Vredin Johansson

Abstract

This paper empirically evaluates a Swedish government subsidy to environmental sustainability, the Local Investment Programme (LIP). During the programme period, 1998 - 2002, more than 670 million was granted to 1814 different municipal projects, making it the largest Swedish subsidization to ecological sustainability to date. For the 682 projects evaluated here, it was found that the projects were rewarded smaller subsidies than granted. To explain the gap between granted and rewarded subsidies, the gap was decomposed into a quantity effect, depending on the quantified environmental and employment outcomes of the projects, and a price effect, depending on the government's valuation of these outcomes. Whereas no statistically significant quantity effect was found, there was a large statistically significant price effect, indicating that the government paid the municipalities less than promised in the granting decision.

Suggested Citation

  • Maria Vredin Johansson, 2007. "Incentives and outcomes: Evaluation of a Swedish environmental subsidy programme," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 50(3), pages 343-362.
    • Handle: RePEc:taf:jenpmg:v:50:y:2007:i:3:p:343-362
    DOI: 10.1080/09640560701261646
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    1. K. Hall, 1998. "Book Review: The Periglacial Environment. Hugh M. French. 2nd edn, Addison Wesley Longman, Harlow, 1996. 341 pp. 182 figures," Permafrost and Periglacial Processes, John Wiley & Sons, vol. 9(1), pages 93-93, January.
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    Cited by:

    1. Hye-Young Joo & Hyunsuk Suh, 2017. "The Effects of Government Support on Corporate Performance Hedging against International Environmental Regulation," Sustainability, MDPI, vol. 9(11), pages 1-25, October.

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