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Perverse Subsidies

by Myers, Norman; Kent, Jennifer

ISBN13: 9781559638357
ISBN10: 1559638354
Format: Paperback
Copyright: 2001-03-01
Publisher: Island Pr

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1. Perverse Subsidies > ISBN13: 9781559638357

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Summary

Much of the global economy depends upon large-scale government intervention in the form of subsidies, both direct and indirect, to support specific industries or economic sectors. Distressingly, many of these subsidies can be characterized as "perverse" -- rather than helping society achieve a desired goal, they work in the opposite direction, causing damage to both our economies and our environments. Worldwide subsidies have long been thought to total $2 trillion per year, but until now, no attempt has been made to determine what proportion of that actually subverts the public interest.In Perverse Subsidies, leading environmental analyst Norman Myers takes a detailed look at the subject, offering a comprehensive view of subsidies worldwide with a particular focus on the extent, causes, and consequences of perverse subsidies. He defines many different kinds of subsidies, from tax incentives to government handouts, and considers their wide-ranging impacts, as he: examines the role of subsidies in policymaking quantifies the direct costs of perverse subsidies examines the major subsidies in agriculture, energy, road transportation, water, fisheries, and forestry considers the environmental effects of those subsidies offers policy advice and specific recommendations for eliminating harmful subsidies .The book provides a valuable framework for evaluation of perverse subsidies, and offers a dramatic illustration of the scale and dimensions of the problem. It will be the standard reference on those subsidies for government reform advocates, policy analysts, and environmentalists, as well as for scholars and students interested in the interactions between policymaking and environmental issues.

List of Tables, Figures, and Boxes

Preface

PART I. Background

Introduction: What Are Subsidies?

(19)

Definition

(4)

Equity Concerns

(1)

Why Subsidies Are Often Unpopular

(2)

The Scale of Subsidies

(1)

Environmental Externalities

(3)

Research Methodology

(4)

Key Caveat

(2)

When Do Subsidies Become Perverse?

(17)

Environmental and Economic Values

(1)

Environmental and Economic Costs

(2)

Environmental Externalities Revisited

(3)

The Question of Uncertainty

(2)

Global Warming

(1)

Summation and Conclusion

(5)

PART II. Sectoral Analyses

Agriculture

(24)

The Subsidies Phenomenon

(2)

United States

(6)

All OECD Countries

(1)

Non-OECD Countries

(1)

The Environmental Resource Base

(3)

Subsidies Worldwide

(4)

Scope for Policy Interventions

(4)

Fossil Fuels and Nuclear Energy

(32)

United States

(2)

All OECD Countries

(1)

The Former Soviet Union and Eastern Europe

(4)

Other Non-OECD Countries

(3)

Nuclear Energy

(2)

Environmental Externalities

(4)

Subsidies Worldwide

(3)

Policy Options

(8)

Cutting Carbon Dioxide Emissions

(1)

Energy Efficiency and Conservation

(6)

Road Transportation

(25)

United States

(6)

Subsidies to the Oil and Car Industries

(1)

Road Building and Infrastructure

100

(1)

Free Parking

100

(1)

Road Congestion

100

(1)

Accidents, Injuries, and Deaths

101

(1)

Military Safeguards

102

(1)

Environmental Externalities

103

(1)

Total U.S. Subsidies

104

(2)

Other OECD Countries

106

(3)

Total Subsidies in OECD Countries

109

(1)

Subsidies in Non-OECD Countries

109

(3)

Subsidies Worldwide

112

(3)

Policy Responses

115

(5)

Establish the ``True'' Price of Gasoline

115

(1)

Adjust the Playing Field

116

(1)

Expand Traffic Management

117

(1)

Increase Car Efficiency

117

(3)

Water

120

(28)

Water Demand and Supply

121

(2)

Water Waste and Subsidies

123

(3)

Adyerse Consequences

126

(5)

Water as a Free Good

131

(2)

Inefficiency and Waste

133

(1)

Three Case Studies

134

(4)

India

134

(1)

Israel

135

(1)

United States

136

(2)

Subsidies Worldwide

138

(3)

Scope for Policy Reform

141

(7)

Fisheries

148

(11)

Marine Fisheries in Decline

149

(2)

Reasons for Decline

151

(1)

Subsidies Worldwide

151

(5)

Policy Responses

156

(3)

Forestry

159

(28)

Example of Overlogging: Indonesia

161

(4)

Example of Cattle Ranching: Brazil

165

(2)

Other Examples of Subsidized Deforestation in the Humid Tropics

167

(1)

Total Subsidies in Tropical Forestry

168

(1)

Examples of Overlogging in Developed Countries

169

(8)

United States

169

(5)

Canada

174

(2)

Russia

176

(1)

Subsidies Worldwide

177

(2)

Environmental Externalities

179

(8)

Material Goods

179

(2)

Environmental Services

181

(6)

Overview Assessment

187

(10)

Perverse Subsidies: The Leaders in Absurdity

190

(1)

The Crux: Covert Costs of Perverse Subsidies

191

(1)

The Double Dividend

192

(5)

PART III. Policy

What Shall We Do About It All?

197

(10)

Big-Picture Strategies

198

(4)

Supplementary Measures

202

(2)

Regulation

202

(1)

User Charges

202

(1)

Tradable Permits

203

(1)

Green Taxes

203

(1)

Subsidies to Support the Environment

204

(1)

Perverse Subsidies and the Taxpayer: Some Better News

205

(2)

Notes

207

(60)

Index

267

Supplemental Materials

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Perverse Subsidies

Summary

Table of Contents

Supplemental Materials

Rewards Program