Effects of the LIP, an Environmental Subsidy, on Regionally Measures against the Global Warming

Abstract

Some countiries, such as Germany and the Netherlands, recently utilised environmental subsidies as a policy measures against the global warming at the local level. The present study chose LIP(Local Investment Programme), which was one of these subsidies and implemented by Swedish government to reduce carbon dioxide emission, to evaluate its effects on the emission in LIP municipality. This study also identified determinates on the emission in both LIP and non-LIP municipalities. Results derived from t -tests indicated that LIP brought narrow difference in effects on carbon dioxide emission between LIP and non-LIP municipalities. The results of applications of the two-step multi-regression analysis also suggested that not LIP but other policy measures contributed to decrease in the emission in the municipalities.