2001
DOI: 10.1111/j.1475-5890.2001.tb00048.x
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Public and private spending for environmental protection: a cross‐country policy analysis

Abstract: OECD data are used to investigate public and private environmental expenditures and, although they are more complete and consistent than other datasets, they are still poor. This is important in the context of measuring the benefits of environmental protection, when little is really known about its actual costs. Despite these limitations, this study demonstrates that there has been no shift towards an increasing private sector burden relative to the public sector over time. The paper also finds little evidence… Show more

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Cited by 80 publications
(46 citation statements)
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“…Although observed empirically from non-market valu-ation studies, this could be seen as difficult to reconcile with the evidence from national environmental expenditures and how these respond to changes in GNP. The share of environmental expenditure tends to rise with GNP (McFadden and Leonard 1993), and the elasticity of this relationship is typically above one (e.g., estimated at 1.2 for the European Union countries; Pearce and Palmer 2001). In this light, our finding of a non-constant income elasticity of WTP is reassuring-as noted by Haneman (1996), elasticities which are non-constant over ranges of income make it possible to reconcile the observed income elasticities of WTP below one with national expenditure elasticities greater than unity.…”
Section: Resultsmentioning
confidence: 99%
“…Although observed empirically from non-market valu-ation studies, this could be seen as difficult to reconcile with the evidence from national environmental expenditures and how these respond to changes in GNP. The share of environmental expenditure tends to rise with GNP (McFadden and Leonard 1993), and the elasticity of this relationship is typically above one (e.g., estimated at 1.2 for the European Union countries; Pearce and Palmer 2001). In this light, our finding of a non-constant income elasticity of WTP is reassuring-as noted by Haneman (1996), elasticities which are non-constant over ranges of income make it possible to reconcile the observed income elasticities of WTP below one with national expenditure elasticities greater than unity.…”
Section: Resultsmentioning
confidence: 99%
“…Many companies spend a great deal on controlling and reducing environmental damage (Organisation for Economic Co-operation and Development [OECD], 2007;Pearce & Palmer, 2001). Yet this approach, like tax-and-spend, also involves swimming against the tide.…”
Section: Beyond "Just Say No"mentioning
confidence: 99%
“…However, there are serious restrictions with regard to data availability. Although the OECD compiles data on environmental expenditures, their quality is low due to a large share of missing values and other inconsistencies (Pearce and Palmer, , p. 403). In addition, no information is provided regarding the share of expenditure directly allocated to the agencies in charge of monitoring and enforcement.…”
Section: Measurement Of the Dependent Variables In The Literaturementioning
confidence: 99%