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Extra resources for Towards Green Growth
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In developing countries, there is also growing use of environmental levies, driven by the prospects of raising revenue and keeping it within the sector agencies. 3 There are risks to this kind of earmarking. Public finance should provide for separation between revenue and expenditure initiatives. There are also environmental management and governance risks associated with the use of internally generated revenues in environment and natural resource agencies (Lawson and Bird, 2008). TOWARDS GREEN GROWTH - © OECD 2011 41 2.
461, 24 September 2009, pp. 472-475. Reprinted by permission from Macmillan Publishers Ltd, copyright 2009. The uncertainty about when non-linear changes arise, the costs associated with them, and the irreversibility of such changes fundamentally alters the usual calculus of trade-offs. There are two related aspects of greenhouse gas emissions that lead to irreversibility. On the one hand, the build up of greenhouse gases in the atmosphere is in large part irreversible due to the long lifetime of many greenhouse gases in the atmosphere.
In addition, the government plans a gradual reduction of total subsidies by 15% on average per year from 2011 to 2014. Subsidies on energy consumption, and to a lesser extent on production, were introduced in Indonesia in order to make energy affordable for people on low incomes. However, they entail significant economic and environmental costs; they put pressure on the public budget and benefit mostly rich households. Over-consumption of cheap energy increases Indonesia’s dependency on energy imports.