Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2004-04-27 Number: 04-047/3 Author-Name: Cees van Beers Author-Workplace-Name: Dept of Economics, Delft University of Technology Author-Name: Jeroen C.J.M. van den Bergh Author-Email: jeroen.bergh@uab.cat Author-Workplace-Name: Vrije Universiteit Amsterdam and Autonomous University Barcelona Author-Name: André de Moor Author-Workplace-Name: National Institute for Public Health and the Environment, Bilthoven, the Netherlands Author-Name: Frans Oosterhuis Author-Workplace-Name: Institute for Environmental Studies, Vrije Universiteit Amsterdam Title: Determining the Environmental Effects of Indirect Subsidies Abstract: Up to now a clear theoretical and methodological framework for economic-environmental analysis of environmentally damaging subsidies is lacking. Environmentally damaging subsidies are all kinds of direct and indirect subsidies aimed at achieving a certain (often non-environmental) goal that produce negative external effects to the natural environment. This article develops a transparent method to determine the environmental impact of indirect government subsidies and derive policy lessons. This method has been applied to several major subsidies in the Netherlands, namely in agriculture, energy, and transport. The results reveal large environmental effects, which need to be taken seriously by policy makers. The method enables policy makers to evaluate the environmental impacts of indirect government subsidies. Classification-JEL: H2; Q2; Q3; Q5; Q28 Keywords: subsidies; environmental economics; environmental management; policy File-Url: https://papers.tinbergen.nl/04047.pdf File-Format: application/pdf File-Size: 790404 bytes Handle: RePEc:tin:wpaper:20040047