Price and Tax Subsidies : Effectiveness and Challenges
Many governments use price and tax subsidization to meet social protection objectives. They endeavor to reduce the cost of living for their population-or for a subset of the population-by subsidizing the price of goods or services in lieu of, or in...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/01/6245223/price-tax-subsidies-effectiveness-challenges http://hdl.handle.net/10986/11822 |
| Summary: | Many governments use price and tax
subsidization to meet social protection objectives. They
endeavor to reduce the cost of living for their
population-or for a subset of the population-by subsidizing
the price of goods or services in lieu of, or in addition
to, direct income transfers. While these subsidies may
distort production incentives, subsidize the non-poor more
than the poor, and limit consumer choice, there are reasons
why a government may choose to use some forms of pricing
policy rather than make income transfers to help the poor. |
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