Subsidies Research Articles

The interface between support schemes for renewable energy and security of supply: Reviewing capacity mechanisms and support schemes for renewable energy in Europe

Energy support schemes can either facilitate or restrict the sustainable development of the energy sector. This article reviews the interface and interaction between two types of energy support schemes – renewable energy support schemes and capacity mechanisms – in the European context. It first explains how state aid in the form of these two energy support schemes is regulated in the European Union and, second, shows how this regulation is reflected in national practices of the Member States by exploring the approaches to renewable energy in various capacity mechanisms. This interdisciplinary analysis of the trade-offs and synergies between renewable energy policies and energy security policies in Europe finds that the European experiences are diverse. The article demonstrates how states often operate a conflicting policy mix where renewable energy support facilitates decarbonization while, in many cases, capacity mechanisms simply back up the intermittency of renewable energy sources with fossil-fuel-based energy solutions that hinder the achievement of the energy transition. Facilitating a shift of focus in capacity mechanisms to low-carbon technologies, demand-response, and storage solutions is the first step in resolving the conflicting policy mix.

The Impacts of Removing Fossil Fuel Subsidies and Increasing Carbon Taxation in Ireland

Though the magnitude of fossil fuel subsidies eclipses carbon pricing revenues, policies and economic literature focus on carbon taxation. This paper aims to show that removing fossil fuel subsidies can reduce emissions as much as carbon taxation without making producers and consumers worse off. Using a dynamic intertemporal CGE model of Ireland, we compare removing eight Irish fossil fuel subsidies and increasing the carbon tax to €100 per tonne by 2030. We find that both policies result in similar emission reductions. Carbon taxation results in lower negative GDP and investment impacts, whereas subsidy removal results in lower negative employment impacts, higher revenues, an improved trade balance and lower debt. The impacts across sectors and households are distributed more evenly under a carbon tax, where subsidy removal results in extreme impacts for specific sectors and households. Excluding households’ subsidies from removal can alleviate these household distributional impacts at no cost to emission reduction. With revenue recycling reducing tax rates, a double-dividend is found at the expense of worsened income distribution. The economic benefit of revenue recycling is greater when removing subsidies than with carbon taxation and results confirm the importance of fossil fuel subsidies in climate policy.

Analysis of demographic trends in onotowns and state support measures.

The article provides a general analysis of the demographic trends of monotowns. Classification, population, employment, migration trends and state support measures for economic diversification of monotowns in Kazakhstan with prospects for the development of town forming enterprise in case of depletion of raw materials. If in some monotowns we see growth of population then others demonstrate the population outflow, therefore we analyzed existing trends in socio-economic development of monotowns, but significant part of them shows demographic decline and outflow of skilled labor force. We provided a comparative analysis, methods of analytical analysis and a review of foreign and domestic scientific literature. We consider the ways of solving problems and development methods of monotowns. We studied socio-economic development level, international experience in solving problems and evaluated the effectiveness of state aid for monotowns. Nine monotowns due to their location have close economic ties with regional centers, which has a positive effect on their economic development. Population in these cities is generally stable. Economy diversification due to competitiveness of monotowns, balance of labor force, labor resources through demographic indicators such as mortality, migration growth, life expectancy. Vast territory, low population density, demographic growth and decline, remoteness from natural resources and intensive development of deposits, development of monotowns remain one of the most main tasks. The population decline in monotowns is observed in Pavlodar, Kostanay, East Kazakhstan, Mangystau regions, and the population of monotowns in Kazakhstan has decreased over the past five years

Assessing the Use of the State Aid Covid Temporary Framework with Regard to the Healthcare and Media Sector

Assessing the Use of the State Aid Covid Temporary Framework with Regard to the Healthcare and Media Sector

The disclosure decision game: Subsidies and incentives for R&D activity

This article presents a three-stage non-cooperative disclosure decision game (DDG), in which R&D-investing firms choose whether to disclose R&D-related information to the rival in a Cournot-like environment. Though firms have no (private) incentive to disclose information unilaterally on their cost-reducing R&D activity to prevent a rival from engaging in free appropriation, this work reveals opportunity for the government to design an optimal policy aimed at incentivising R&D disclosure. Following this welfare-improving path, sharing R&D-related information becomes a Pareto-efficient Nash equilibrium strategy. These findings suggest that using public subsidies to R&D disclosure can lead to a win-win result, eliminating the unpleasant non-disclosing outcome from a societal perspective.

Forum: AG Kokott Tries to Bring Clarity to the Selectivity Test for Individual Tax Rulings

In an opinion of 4 May 2023 in Case C-454/21 P, Engie, Advocate General Kokott proposes a new standard of state aid review of individual tax measures such as the tax rulings, based on a manifestly erroneous application of tax law (favourable to the taxpayer) by the national tax administration. Considering that, in order to assess the selective nature of tax rulings, only national law must constitute the frame of reference and that in any event, only tax rulings that are manifestly erroneous with regard to national law can constitute a selective advantage, Advocate General Kokott has called on the Court to annul the Commission’s decision finding that Luxembourg granted the Engie group unlawful state aid in the form of tax advantages, as well as the judgment of the General Court. State aid control, direct taxation, notion of selective advantage, Commission practice, aggressive tax planning, individual tax rulings, tax system of reference, comparability, Union Courts review, annulment of Commission decision

62 Organizations Urge the Lockport, NY, Industrial Development Authority to Reject Public Subsidies for New Polyvinyl Chloride Plastics Facility

Beyond Plastics announced on June 29,2023, that it joined 61 organizations in calling for the Lockport, New York, Industrial Development Agency Board to deny a plastic company's request for public subsidies to build a new facility in Lockport. The facility would be SRI CV Plastics’ first production facility in the U.S. and would manufacture single-use disposable plastic packaging and polyvinyl chloride (PVC), plastic pipes.

Can old drugs learn new tricks? Achieving registration and public subsidy listing for off-patent medicines with novel therapeutic applications.

With the increasing costs of drug development, repurposing of low-cost medicines for new indications has never been more important. However, there are multiple barriers to repurposing, particularly for off-patent medicines, and limited incentives for the pharmaceutical industry to sponsor registration and public subsidy listing. Here, we explore these barriers and their consequences and provide examples of successful repurposing strategies.

P60 Impacts of state aid schemes for the development of dairy cattle farms. Case of National Agency for Support and Development

P60 Impacts of state aid schemes for the development of dairy cattle farms. Case of National Agency for Support and Development

A Decomposition Analysis of Fisheries Household Income Inequality with and without Public Subsidies

A Decomposition Analysis of Fisheries Household Income Inequality with and without Public Subsidies

Job Satisfaction of State Aided College Teachers with respect to their gender, areas and teaching experiences in North 24 parganas, West Bengal

Abstract: In this study an attempt has been made by the researcher to assess the job satisfaction level of State Aided College Teachers. The investigator used Descriptive type survey method. By using purposive sampling method the researcher takes 110 SACT teachers as sample from 4 general degree colleges of the district of North 24 Parganas, West Bengal. The researcher develops self – constructed Job Satisfaction Scale of SACT Teachers as a tool of data collection. ANOVA & t – test is used for data analysis. The result shows that the State Aided College Teachers in the district of North 24 Parganas is satisfied in their job to a certain extent. The major findings of this study is that different variables like gender, age & teaching experiences do not have any effect on the job satisfaction level of SACT teachers of North 24 Parganas.
 Keywords: Job Satisfaction, State Aided College Teachers

Liberalization in the Context of Democratization: Assessment of the January 2012 Fuel Subsidy Removal Protests in Nigeria

The decision by the Good Luck Jonathan-led regime to effect the removal of fuel subsidies on January 1st, 2012, prompted the most coordinated popular protests in Nigeria’s Fourth Republic. The subsidy removal and social protests it triggered had numerous socio-political implications. This paper examines the implications of the social protest on civic activism and political participation. The study adopts the qualitative research method. Data was derived from a combination of primary and secondary sources, which include news articles, opinion pieces, commentaries, editorials and press interviews published by Nigerian newspapers and sourced from their archives. It also utilized information sourced from official documents and reports published by governmental and non-governmental bodies. These materials were analyzed using the content analysis method. The study finds that it is essential for the State to engender citizen trust, given that trust is a core requirement for securing the legitimacy of the governed. The study also finds that the protests helped to rekindle the spirit of civic activism among Nigerians, especially the youth segment. This activism was largely aided by the deployment of digital tools as instruments for mobilization, coordination and communication in the protest movement. The article concludes that the subsidy removal protests had profound impacts on civic political activism, long thought to be dead among Nigerians.

Household energy consumption and the financial feasibility of self-consumption through photovoltaic panels in Spain

Energy consumption is one of the main costs faced by households, both financially and environmentally. This article analyses the energy consumption of Spanish households and the cost of installing solar panels in order to determine the potential of this form of energy production on a household level. The results show that households with a larger number of members have a higher total consumption but a lower consumption per person. The composition of the household is therefore a key determinant of the potential savings from solar panels. This alternative is financially viable, as the unit price paid for energy in these households is between €0.28 and €0.29 per kilowatt-hour (kWh), while the average cost per kWh obtained from the panels is between €0.15 and €0.21. However, the current public subsidies for the installation of solar panels in Spain are inaccessible to 68% of the country’s households, and there are difficulties in the distribution of energy in neighbouring communities. In other words, although in financial terms home PV self-consumption is a financially viable option, the inability to obtaining subsidies makes the initial investment a major barrier for many households.

The new environmental and energy state aid guidelines: one year in place

The new environmental and energy state aid guidelines: one year in place

Fuel Subsidy and Hyper Corruption in Nigeria

Abstract: Fuel subsidy has caused so much mightronares and troubles in Nigeria. It was the hydra problem confronting Nigeria national budget. Issues surfaced on the 29th day of May, 2023, when President Bola Ahmed Tinubu removed fuel subsidy in Nigeria. Greatest number of Nigerians accepted the removal of the fuel subsidy in good faith against the backdrop of its benefits. Fundamentally, the fuel subsidy in Nigeria was used as a conduit pipe to siphon Nigeria’s resources. For example, an erstwhile Minister of Finance in Nigeria in August, 2020 said the federal government of Nigeria spends about N18-397 billion (Naira) on fuel subsidy daily. Also, a forensic audit of Nigerian National Petroleum Corporation (NNPC) by Price Water House Coopers revealed that petrol subsidy cost Nigeria almost ten billion naira between January 2012 and July 2013. Subsidy also distorted market and frustrated investment. “The greatest happiness of the greatest number” theory is adopted as the theoretical framework for this study and used the historical design, and the data collected are from secondary sources. The paper also peruses at the reasons for the removal of fuel subsidy in Nigeria and the gains Nigeria will make thereafter in the fuel industries. This study finds among others that corruption has rubbished the fuel subsidy in Nigeria. This paper finally made some recommendations that government officials and private participants in the petroleum industry found guilty of corruption in fuel subsidy in Nigeria should be sent to the gallows among others. Keywords: Fuel Subsidy: Corruption: Budget: Market Prices: Bureaucracy: Poor Masses: Nigeria.

Assessment of the Effects of the COVID-19 Pandemic in the HoReCa Industry in the Opinion of Customers and Employees

Assessment of the Effects of the COVID-19 Pandemic in the HoReCa Industry in the Opinion of Customers and Employees

Swoisty charakter ochrony prawnej w przypadku pomocy w zakresie rozwoju regionalnego w węgierskim prawie i praktyce prawnej, ze szczególnym uwzględnieniem problemów kolizyjnych

The regional development aids have a significant role in Hungarian economic life, therefore, the legal regulation on them and the remedies against the decisions of the state agencies can be considered as an important issue. The article analyses the dogmatic background of state aid and regional development contracts. It is emphasized, that there is a tension between the EU and national-level legislation. These contracts and the liability for these contracts are interpreted as an administrative one by the EU regulation, however, the private law nature of these contracts is mainly highlighted by the Hungarian legislation and partly by the judicial practice. The article examines judicial practice, and it can be emphasized, that the above-mentioned tension can be observed in it. This tension has significant effects, especially since the effectiveness of these remedies can be questioned.

Pomoc udzielana przez państwa jako ryzyko w polityce przewag konkurencyjnych w Unii Europejskiej

Compatibility of economic advantages with the internal market refers to the economic impact of state aid that is permitted by EU competition rules. In general, this approach is based on the acceptance of derogations from basic obligations in a market economy, that may also be granted by the European Union to its Member States. Due advantages seem compatible with EU law per se, however, such compatibility also depends on the discretion of the competent administrative and judicial bodies. According to the analytical and empirical legal policy investigation presented in this article, the activity of the Court of Justice of the European Union is increasing in order to allow exceptions from general rules and extend the scope of compatibility in this field. This process may lead to enhance derogations from market-based commitments in Member States, typically in certain Central and Eastern European countries, which tend to emphasize the primacy of national regulation and are keen to exploit the potential of such broader regulatory autonomy. The aim of the study is to identify the origin and nature of this risk in order to support efforts that may diminish harmful effects in an EU-wide context. The empirical evidence of the paper derives from a systematically selected set of case law as a context by which the examined policy orientation is mirrored.

Unraveling State governance in the Chilean Cordillera: Privatization, precariousness, and arrhythmia

This article discusses how communities from the Chilean cordillera negotiate their presence and reproduction with the Chilean State. We analyze people and animals' mobility through a multisite ethnography, which took place between 2021 and 2022. In this context, communities seem independent while facing the weak and inconstant State presence. However, processes of change concerning extractive economies, decreasing State aid, and consequences of climate change complicate the practices once thought to be autonomous in the mountain range. The State appears to favor certain degrees of independence through arrhythmic governance. Such an arrangement allows a fluctuating and unstable relationship that, despite the grip of the State, translates into emergent forms of autonomy that nonetheless end up being a specific type of precarization. In this sense, mountain communities maintain, complicate and, on occasion, deepen the relations of dependence towards a State that they either ignore or elude. Finally, the intertwined movements of neoliberalization, environmental stressors and precarious State governance are elements that deepen the production of an arrhythmic State movement; which also redistributes agency among actors on the terrain.

On the Issue of the Place of State Support of Small and Medium-Sized Enterprises in the Economic Law System of Ukraine

Problem setting. In Ukraine, state support for small businesses was introduced in 2000. Currently, the mechanism of state support of economic entities is regulated by a number of acts of national legislation. However, the place of the legal institution of state support in the system of economic law, its relationship with state aid, the criteria for the admissibility of state aid in the context of the unification of national legislation with EU legislation continue to remain debatable in the science of economic law. Analysis of recent researches and publications. Economic and legal problems of small and medium-sized enterprises and their state support were studied by many domestic and foreign scientists. Only recently, these issues were considered in the collective monograph of the Research Institute of Legal Support of Innovative Development of the National Academy of Sciences, the monograph of D.S. Korytin, who studied the legal regulation of the economic activity of small and medium-sized enterprises, the dissertations of Feofanova I.M., who considered the economic and legal aspect of the admissibility of state aid and Petrova N.O., who studied the administrative and legal principles of monitoring state aid sub economic entities in Ukraine. Purpose of the research is to determine the place of the institute of state support of small and medium-sized enterprises in the system of economic law of Ukraine. Аrticle’s main body. Small and medium-sized enterprises play a significant role in the world economy. However, the operating conditions of small and medium-sized enterprises in Ukraine are difficult. Obstacles are the imperfection and burdensomeness of the taxation system, the presence of administrative obstacles, unsettled issues of financing and lending, low level of state financial support, underdeveloped infrastructure supporting entrepreneurship, etc. Currently, to these reasons added the negative consequences of Russia’s full-scale aggression. Such an effective tool as state support helps small and medium-sized enterprises overcome the consequences of the war and develop their activities in the post-war period. Therefore, strengthening the state support for small and mediumsized enterprises and improving the mechanism of its provision is an extremely urgent issue for our state The activity of small and medium-sized enterprises is very important for the economy of Ukraine. In wartime, their effective activity contributes to increasing budget revenues and reducing unemployment, and in the post-war period should become the very lever that will accelerate the growth of the economy and the reconstruction of the country. However, the Economic Code of Ukraine contains regulations on state support and protection of all economic entities. and support of small and medium-sized enterprises is not the state’s priorities Conclusions and prospects for the development Small and medium-sized enterprises play a significant role in the economy of Ukraine. In wartime, their effective activity contributes to the increase of revenues to the budget and the reduction of unemployment, and in the postwar period, it should become the very lever that will accelerate the growth of the economy and the reconstruction of the country. On the other hand, the priority of state policy regarding the support and development of small and medium-sized enterprises is not fixed in the Economic Code of Ukraine, which needs to be corrected. The list of means of state regulation of economic activity contained in Article 12 of the Economic Code of Ukraine should be supplemented by such an institution of economic law as state support for small and medium-sized enterprises.