Synopses & Reviews
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 andquot;perverseandquot;-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.
About the Author
Norman Myers is an independent scientist specializing in environmental issues, based in Oxford, England. Since 1992 he has been an Honorary Visiting Fellow at Green College, Oxford University, and is widely recognized for his pioneering conceptual and analytical approaches toward our environments. His books include "Ultimate Security" (Island Press, 1996), and "The Primary Source" (Norton, 1992).
Jennifer Kent is a researcher specializing in environment and sustainable economics based in Oxford, England.
Table of Contents
List of Tables, Figures, and Boxes
Preface
PART I. Background
Chapter 1. Introduction: What Are Subsidies?
- Definition
- Equity Concerns
- Why Subsidies Are Often Unpopular
- The Scale of Subsidies
- Environmental Externalities
- Research Methodology
- Key Caveat
Chapter 2. When Do Subsidies Become Perverse?
- Environmental and Economic Values
- Environmental and Economic Costs
- Environmental Externalities Revisited
- The Question of Uncertainty
- Global Warming
- Summation and Conclusion
PART II. Sectoral Analyses
Chapter 3. Agriculture
- The Subsidies Phenomenon
- United States
- All OECD Countries
- Non-OECD Countries
- The Environmental Resource Base
-Subsidies Worldwide
-Scope for Policy Interventions
Chapter 4. Fossil Fuels and Nuclear Energy
-United States
-All OECD Countries
-The Former Soviet Union and Eastern Europe
-Other Non-OECD Countries
-Nuclear Energy
-Environmental Externalities
-Subsidies Worldwide
-Policy Options
Chapter 5. Road Transportation
-United States
-Total U.S. Subsidies
-Other OECD Countries
-Total Subsidies in OECD Countries
-Subsidies in Non-OECD Countries
-Subsidies Worldwide
-Policy Responses
Chapter 6. Water
-Water Demand and Supply
-Water Waste and Subsidies
-Adverse Consequences
-Water as a Free Good
-Inefficiency and Waste
- Three Case Studies
- Subsidies Worldwide
- Scope for Policy Reform
Chapter 7. Fisheries
- Marine Fisheries in Decline
- Reasons for Decline
- Subsidies Worldwide
- Policy Responses
Chapter 8. Forestry
- Example of Overlogging: Indonesia
- Example of Cattle Ranching: Brazil
- Other Examples of Subsidized Deforestation in the Humid Tropics
- Total Subsidies in Tropical Forestry
- Examples of Overlogging in Developed Countries
- Subsidies Worldwide
- Environmental Externalities
Chapter 9. Overview Assessment
- Perverse Subsidies: The Leaders in Absurdity
- The Crux: Covert Costs of Perverse Subsidies
- The Double Dividend
PART III. Policy
Chapter 10. What Shall We Do About It All?
- Big-Picture Strategies
- Supplementary Measures
- Subsidies to Support the Environment
- Perverse Subsidies and the Taxpayer: Some Better News
Notes
Index