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1997 Stock-taking report/Inventory/Scoping

1997 Stock-taking report/Inventory/Scoping. Indirect/direct subsidies Environmentally harmful= environmental harm, caused by products, processes or activities and their environmental effects on the most important environmental problems Scoring and selection of a leading group . Results.

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1997 Stock-taking report/Inventory/Scoping

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  1. 1997 Stock-taking report/Inventory/Scoping Indirect/direct subsidies Environmentally harmful= environmental harm, caused by products, processes or activities and their environmental effects on the most important environmental problems Scoring and selection of a leading group

  2. Results • 129 environmentally harmful subsidies (out of 600) • More than 5 billion dollar • Most important sectors: agriculture, transport and building

  3. 2nd Inquiry • How can the negative environmental effects of environmentally harmful subsidies be reduced? • Method of working: • (Actualized) selection of potentially harmful • direct and fiscal subsidies • further inquiry into 9 likely environmentally harmful direct subsidies • list of potentially environmentally harmful • fiscal subsidies, handed over to the • Committee on Greening the Taxes

  4. Results Adaptation of some subsidies: for example the subidy for constructing industrial parks. Changed into a subsidy to construct sustainable industrial parks

  5. 3rd Inquiry Title: Environmental impact of indirect subsidies Aim Developing a transparent, integrated method to determine the environmental impact of subsidies, with applications in the agriculture, energy, transport and tourism sectors

  6. When determining the environmental effects of subsidies, multidisciplinary or integral modelling of a chain of effects through the economy is required, starting with a subsidy and ending with an environmental impact. Step 1:Determine the type of subsidy.Step 2: Determine the size of a subsidy.Step 3: Analyse the policy environment. Step 4: Determine the economic effects of the subsidy. Step 5: Quantify the relevant parameters.Step 6: Calculate the (relevant) environmental effects.Step 7: Perform a sensitivity analysis.

  7. Cases • Minimum price for milk/dairy prducts • Low rate of VAT on meat • Designation of land for agricultural use • Regulatory energy tax • Passing on the cost of railway infrastructure • Public transport community allowance • Exemption from excise duty on aviation fuel • Low return on the government share in Schiphol Airport

  8. Next steps Developing methods to determine the social and economic impact of subsidies with a view to finally weighing/balancing the negative environmental impact against the (positive?) social and/or economic impact with a view to adjusting or removing environmentally harmful subsidies

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