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Research instrumentcountry-assessed

Subsidy reform

Release resources by reforming subsidies with unjustified public or environmental costs while protecting people affected by the transition.

The question

Which subsidies can be reduced or redesigned to free resources without shifting costs onto people who depend on essential goods?

A country-assessed strategy: applicability, maximum capacity, usable share and time profile depend on actual country conditions.

What it may fund in the current model

Recurring costs

allowed

Capital investment

allowed

When it can be counted

  • A credible legal and administrative basis must exist to collect, save or transfer the resources concerned.
  • Usable capacity must be estimated separately from a theoretical or planning ceiling.
  • Administrative costs, distributional effects, incentives and avoidance risks must be considered before crediting resources to material-security financing.

What it does not prove

  • Savings must be separated from transition costs and necessary compensation.
  • A subsidy is not “inefficient” merely because it is costly; its function and distributional effects matter.

Verification status

They are not resources already available or funding already secured.

These families remain instruments to parameterize with context-specific data and rules. No entry is treated as an available resource merely because it appears in the catalogue; global quantitative feasibility remains to be demonstrated.

Sources and further detail

External sources used to assess public finance, fiscal capacity and financing instruments are linked on the Sources page. World4Humans internal technical working materials are not publicly distributed.