2007
DOI: 10.1787/125487536033
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The Role of Compensation in Policy Reform

Abstract: Governments reform policies in order to improve their efficiency and respond to changing social priorities. Reform is resisted when concerns exist about those who may lose out in the process, or when other policy goals are negatively impacted. Compensation can remove barriers to reform by addressing this resistance, and can contribute to adjustment by speeding its process but may itself impede the reform process if it masks the market signals that lead to adjustment. Compensation is not always necessary or app… Show more

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Cited by 3 publications
(1 citation statement)
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References 32 publications
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“…In Spain, after several drought episodes coupled with water pollution, reforms were first introduced in water-scarce regions: volumetric pricing replaced the former acre-based system and water supply was improved by investing in desalination and water recycling (Dinar and Zilberman, 2016[69]). In Brazil, the 2017 plan intends to introduce water charges that target large farms that abstract the vast majority of water and generate a large share of water pollution in order to minimise the transaction costs of the reform, at least at an early stage (Luiz and Zoby, 2018 [85]).…”
Section: Adjustable Smart Reform Sequencing: Prioritization and Gradumentioning
confidence: 99%
“…In Spain, after several drought episodes coupled with water pollution, reforms were first introduced in water-scarce regions: volumetric pricing replaced the former acre-based system and water supply was improved by investing in desalination and water recycling (Dinar and Zilberman, 2016[69]). In Brazil, the 2017 plan intends to introduce water charges that target large farms that abstract the vast majority of water and generate a large share of water pollution in order to minimise the transaction costs of the reform, at least at an early stage (Luiz and Zoby, 2018 [85]).…”
Section: Adjustable Smart Reform Sequencing: Prioritization and Gradumentioning
confidence: 99%