Public Subsidies and Policy Failures: How Subsidies Distort the Natural Environment, Equity and Trade and How to Reform Them

by Cees van Beers, André de Moor

Overview

The allocation of subsidies is often regarded as a fundamental role of governments in order to realise and maintain benefits to society. The possibility that public subsidies could actually be counterproductive contradicts common perception. The authors of this challenging book present recent evidence which, in their view, suggests that subsidies may in fact turn out to be a contemporary plague.

Public Subsidies and Policy Failures provides extensive analysis of the theory and political economy of public support policies, demonstrating how subsidies can harm the environment, distort trade, and benefit those in society who do not require support. Furthermore, they often fail to achieve the desired and expected goals. The authors employ a theoretical framework to illustrate the impact of subsidies on developed and developing economies, as well as on international trade. They examine public subsidies in various natural resource and industrial sectors and discover that many turn out to be policy failures. They also investigate the various barriers and lock-in mechanisms by which subsidies become entrenched in economic and political structures. The book goes on to propose concrete actions, policy strategies and international 'Grand Deals' which will engender effective subsidy reforms.

Scholars, researchers and students will welcome this rigorous investigation into the political and economic costs and benefits of public subsidies. International trade organisations and policymakers will also benefit from the strategic emphasis.

Product Details

ISBN-13:	9781840643367
Publisher:	Edward Elgar Publishing
Publication date:	10/28/2001
Pages:	160
Product dimensions:	6.00(w) x 9.30(h) x 0.90(d)

About the Author

Cees van Beers, Professor of Innovation Economics and Management, Faculty of Technology, Policy and Management, Delft University of Technology, and Co-leader, International Centre for Frugal Innovation, Leiden-Delft-Erasmus Universities and André de Moor, Deputy Head of International Environmental Assessment Division, RIVM National Institute of Public Health and Environment, the Netherlands

Table of Contents

Contents: Preface Foreword by Jim MacNeill 1. Public Subsidies and Government Policy 2. An Economic Analysis of Public Subsidies and Policy Failures 3. The Costs and Impacts of Public Subsidies 4. Addiction to Subsidies 5. Subsidy Reform Policies and Strategies 6. Summary and Conclusions References Index

Editorial Reviews

'This book highlights one of the most productive things environmental groups, economists and policy officials could do for society: form a partnership to push for cuts to subsidies that simultaneously damage the economy and the environment. The authors have made that task easier for those groups by providing a comprehensive and yet very readable analysis of the issue. They provide an assessment of the overall extent of subsidies to different sectors in rich and poor countries, including a wide range of case studies. This is a 'must buy' for people seriously interested in finding ways to improve the environment that contribute to rather than deplete national treasuries and development prospects.'

Kym Anderson

'This is an enormously significant book. Cees van Beers and Andre de Moor have not only identified the main obstacles but also suggested new pathways to the key public policy reforms needed to move toward a more prosperous, equitable and sustainable future. Their work is superb, marked by insight, innovation, rigor of analyses, and strength of argument.'

From the foreword by Jim MacNeill

'This book offers an intelligent contribution for those who want to understand the effects of subsidies in the world economy. It is particularly important because of its focus on the adverse effects on natural resources and the environment. The effort to develop a theoretical and rigorous analytical framework is an excellent addition to the subject of economic theory. The authors make a noteworthy effort to measure and classify subsidies in such a manner that readers could have a better visualization of the size and distribution of subsidies among different sectors of the world economy.'

Alexandre Rivas

'This book offers an intelligent contribution for those who want to understand the effects of subsidies in the world economy. It is particularly important because of its focus on the adverse effects on natural resources and the environment. The effort to develop a theoretical and rigorous analytical framework is an excellent addition to the subject of economic theory. The authors make a noteworthy effort to measure and classify

From the Publisher