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Additional info for Subsidy reform and sustainable Development: Economic, environmental and social Aspects

Sample text

G. of clean air or water). Importantly too, particularly in the case of OECD countries, the environmental Kuznets curve suggests that individuals in developed economies will have a strong preference for environmental services. Such preferences have already manifested themselves in New Zealand through inter alia the setting aside by Governments of considerable amounts of protected areas in an effort to maintain and sustainably use regions of unique diversity. There is, however, also increasing evidence that the SUBSIDY REFORM AND SUSTAINABLE DEVELOPMENT: ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS – ISBN-92-64-02564-2 © OECD 2006 58 – CHAPTER 3.

Support to the increased use of these fuels poses greater threats to the environment than, say, subsides that support the use of energysaving devices or the development of renewable energy. At the same time, there are often significant social objectives that need to be considered when assessing energy policy, together with the general equilibrium effects of altered patterns of energy production and consumption that may be generated by subsidy reform. The potential environmental effects of removing subsidies at the various stages of the water cycle are generally positive, particularly at the early stages of the water cycle.

G. of clean air or water). Importantly too, particularly in the case of OECD countries, the environmental Kuznets curve suggests that individuals in developed economies will have a strong preference for environmental services. Such preferences have already manifested themselves in New Zealand through inter alia the setting aside by Governments of considerable amounts of protected areas in an effort to maintain and sustainably use regions of unique diversity. There is, however, also increasing evidence that the SUBSIDY REFORM AND SUSTAINABLE DEVELOPMENT: ECONOMIC, ENVIRONMENTAL AND SOCIAL ASPECTS – ISBN-92-64-02564-2 © OECD 2006 58 – CHAPTER 3.

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