Public Expenditure Policy and the Environment: A Review and Synthesis

Author/Editor:

Kenneth M. Miranda ; Ian W.H. Parry ; Sanjeev Gupta

Publication Date:

March 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Commonly cited environmental instruments in the legal, regulatory, and fiscal domains are intended primarily to address market failures to ensure that environmental degradation and resource use is contained to appropriate levels. However, in many instances, environmental degradation is rooted not in market failure, but rather in policy failure. This paper identifies areas of public expenditure policy that interact with the environment. It argues that a reform of certain types of subsidies, increased operations and maintenance expenditures, and a thorough environmental assessment of capital projects will tend to benefit the environment, thereby moving an economy towards ‘sustainable’ development.

Series:

Working Paper No. 1993/027

Subject:

Agroindustries Economic sectors Environment Environmental policy Expenditure Government subsidies

English

Publication Date:

March 1, 1993

ISBN/ISSN:

9781451844443/1018-5941

Stock No:

WPIEA0271993

Pages:

42

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