Subsidy Reform and Sustainable Development

Political Economy Aspects

image of Subsidy Reform and Sustainable Development

Unsustainable subsidies are pervasive in the industry, agriculture, transport and energy sectors of most OECD countries. They are expensive for governments and can have harmful environmental and social effects. Eliminating these supports requires comprehensive approaches which are supported by top political leadership, transparent in their potential effects on all parties, consistent over the long-term, and often accompanied by transition supports. This volume uses sectoral case studies to illustrate that achieving change in structural policies such as subsidies depends largely on good governance practices.



Easing Subsidy Reform for Producers, Consumers and Communities

The subject of subsidy reform has received considerable attention in recent years. However, much of this attention is focused on the end points or goals of reform and less attention has been paid to the actual process of reform. It is generally recognised that appropriately targeted subsidy reform will result in improved overall economic efficiency and will increase social welfare. But not everyone will gain in the short run and some individuals and communities may be adversely affected by the policy change, prompting governments to seek ways to cushion the impacts of reform on individuals and communities.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error