The Political Economy of Coal Subsidies in Europe
Kym Anderson ()
No 1089, CEPR Discussion Papers from C.E.P.R. Discussion Papers
Both the mining and the burning of coal is pollutive, so one might expect to observe taxes on coal production and consumption. Yet several countries in Western Europe subsidize coal production, and most East European countries subsidize coal consumption. The first part of this paper shows that those subsidies, which are emulated by other rich and poor countries respectively, have become enormous. Neoclassical political economy is used to examine why governments adopt such inappropriate policies when they are so wasteful of resources and damaging to the environment. Several new and offsetting political forces have been at work in Western Europe in recent years though, causing some countries to dismantle their coal producer subsidies. The paper concludes that these pressures for reform will continue to operate in the few remaining protectionist countries such that, if coupled with more commercial diplomatic pressure from coal-exporting countries, they could be sufficient to see the end of such protection by early next century.
Keywords: Coal Subsidies; Coal Trade Liberalization; Eastern Europe; European Union; Political Economy (search for similar items in EconPapers)
JEL-codes: F13 H21 Q38 Q48 (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
Journal Article: The political economy of coal subsidies in Europe (1995)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:1089
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1089
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ..
Series data maintained by (). This e-mail address is bad, please contact .