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Environmentally Harmful Subsidies

Challenges for Reform

image of Environmentally Harmful Subsidies

Subsidies are pervasive throughout OECD countries and much of this support is potentially harmful environmentally. This report presents sectoral analyses on agriculture, fisheries, water, energy and transport, proposing a checklist approach to identifying and assessing environmentally harmful subsidies. It also identifies the key tensions and conflicts that are likely to influence subsidy policy making. The book concludes with a discussion of politically feasible subsidy reform strategies.

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Annex A Stocktaking of OECD Work on Subsidies

OECD Ministers asked the OECD Secretariat to initiate work on environmentally harmful subsidies in 2001. In 2004 they renewed their long-standing commitment to reduce trade distorting and environmentally harmful subsidies. The World Summit on Sustainable Development had also addressed the problem of environmentally harmful subsidies and the adopted Plan of Implementation includes several references to them. While the OECD is internationally recognised as a leading organisation in the field of subsidy measurement and analysis, especially for agriculture, fisheries and coal, the work is characterised by a range of methodological approaches, patchy and incomplete data, and non-comparable subsidy estimates across the various sectors...

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