Perverse Subsidies

Paper Summary:

This paper introduces, discusses, and analyzes the topic of perverse subsidies. Specifically, it explains what a perverse subsidy is, including what makes it 'perverse', and what the American government is doing about the problem. It gives specific dollar amounts and discusses what these subsidies are doing to the environment.

From the Paper:

"Perverse subsidies are, in a word, perverse. They encourage development in scientific and industrial sectors that is counterproductive to environmental and economic concerns, and they encourage growth and development in areas that often should be regulated and reduced, rather than encouraged. For example, as these experts note, "Energy subsidies can, and usually do, favor large supply projects and undermine funding for biomass and renewables. Tax concessions for logging, settlement, and ranching can accelerate deforestation, species loss, and soil and water degradation" (MacNeilln and Winsemius, 1991, p. 33). Many of the perverse subsidies today revolve around agriculture, and they can be some of the most damaging of all these subsidies. These subsidies exist all over the world, and experts believe they cost North American, European, and Japanese consumers and taxpayers more than $250 billion dollars per year (MacNeilln and Winsemius, 1991, p. 34), and these are only agricultural subsidies."

More papers on Perverse Subsidies:

• Essay # 59217 : "The Impact of Agricultural Subsidies"
• Essay # 58881 : "Energy Subsidies and Their Impact on Society"
• Argumentative Essay # 121560 : "Economics of Farm Subsidies"

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