Skip to main content
Article thumbnail
Location of Repository

Public and private spending for environmental protection: a cross-country policy analysis

By David Pearce and Charles Palmer


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 to show that environmental expenditures negatively impact on economic growth, although there is inconsistency between the 'no effects' finding of the competitiveness literature and the 'negative effects' finding of most of the productivity literature. Finally, the elasticity of expenditure with respect to income is found to be 1.2, lower than would be expected if the 'environmental demand effect' is significant in explaining the downward slope of the environmental Kuznets curve

Topics: GE Environmental Sciences, HJ Public Finance
Publisher: Wiley-Blackwell Publishing, Inc.
Year: 2001
OAI identifier:
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • (external link)
  • Suggested articles

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.