Perseverance of perverse subsidies and their impact on trade and environment |
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| Affiliation: | 1. Department of Basic Sciences, School of Engineering and Technology, Jain University, Bangalore 562 112, India;2. Department of Nanotechnology, Visvesvaraya Technological University, CPGS, Muddenahalli, Bengaluru region 562101, India;3. Centre for Materials Science, Vijnana Bhavan, University of Mysore, Manasagangotri, Mysore 570 006, India;4. School of Chemical and Biomolecular Engineering, The University of Sydney, NSW 2006, Australia;5. Department of Physics, The National Institute of Engineering, Mysuru 570 008, India |
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| 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. |
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