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Perseverance of Perverse Subsidies and their Impact on Trade and the Environment

Cees van Beers and Jeroen van den Bergh
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Cees van Beers: Delft University of Technology

No 00-005/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: Theoretical and empirical aspects of policy failures due to subsidies are discussed in the context of international trade. A general classification of subsidies that cause environmental externalities is presented. The economic and environmental impacts of producer subsidies on international trade are examined with partial equilibrium analysis. The magnitude and economic and environmental relevance of subsidies in various sectors is assessed on the basis of empirical indicators. Finally, suggestions are provided on how subsidy-related policy failures can be eliminated at national and international levels. This discussion paper has resulted in a publication in Ecological Economics , 2001, 36(3), 475-86.

Keywords: Environmental policy; Trade policy; Perverse subsidies; International institutions; International agreements; Policy failures; International trade; Environmentally damaging subsidies (search for similar items in EconPapers)
Date: 2000-02-10
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