Description

“In general, a result of a government actions (covering policy measures and budgetary transfers) that confer an advantage on consumers or producers, in order to supplement their income or lower their costs, but in doing so, inadvertently have adverse impacts on the environment. Note that incentives, are broader than subsides, which include budgetary transfers, but do not include other policy measures that may result in supplemented income or lower costs for the consumer or producer”.

Adapted from OECD (2005) ¹