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Determining the Environmental Effects of Indirect Subsidies

Author

Listed:
  • Cees van Beers

    (Dept of Economics, Delft University of Technology)

  • Jeroen C.J.M. van den Bergh

    (Vrije Universiteit Amsterdam and Autonomous University Barcelona)

  • André de Moor

    (National Institute for Public Health and the Environment, Bilthoven, the Netherlands)

  • Frans Oosterhuis

    (Institute for Environmental Studies, Vrije Universiteit Amsterdam)

Abstract

Up to now a clear theoretical and methodological framework for economic-environmental analysis of environmentally damaging subsidies is lacking. Environmentally damaging subsidies are all kinds of direct and indirect subsidies aimed at achieving a certain (often non-environmental) goal that produce negative external effects to the natural environment. This article develops a transparent method to determine the environmental impact of indirect government subsidies and derive policy lessons. This method has been applied to several major subsidies in the Netherlands, namely in agriculture, energy, and transport. The results reveal large environmental effects, which need to be taken seriously by policy makers. The method enables policy makers to evaluate the environmental impacts of indirect government subsidies.

Suggested Citation

  • Cees van Beers & Jeroen C.J.M. van den Bergh & André de Moor & Frans Oosterhuis, 2004. "Determining the Environmental Effects of Indirect Subsidies," Tinbergen Institute Discussion Papers 04-047/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20040047
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    References listed on IDEAS

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    3. Cees van Beers & André de Moor, 2001. "Public Subsidies and Policy Failures," Books, Edward Elgar Publishing, number 2040.
    4. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    5. van Beers, Cees & van den Bergh, Jeroen C. J. M., 2001. "Perseverance of perverse subsidies and their impact on trade and environment," Ecological Economics, Elsevier, vol. 36(3), pages 475-486, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    subsidies; environmental economics; environmental management; policy;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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