Editing Subsidy (section)

===Effects===
The detrimental effects of perverse subsidies are diverse in nature and reach. Case-studies from differing sectors are highlighted below but can be summarised as follows.

Directly, they are expensive to governments by directing resources away from other legitimate should priorities (such as environmental conservation, education, health, or infrastructure),<ref name=NakedCapitalism-2014-06-03>[http://www.nakedcapitalism.com/2014/06/good-economic-development-deal.html Is That a Good State/Local Economic Development Deal? A Checklist] {{Webarchive|url=https://web.archive.org/web/20140605031139/http://www.nakedcapitalism.com/2014/06/good-economic-development-deal.html |date=2014-06-05 }} (2014-06-03), ''[[Naked Capitalism]]''</ref><ref name="Myers 2008" /><ref name="James 1999">{{cite journal|last=James|first=A.N.|author2=Gaston, K.J. |author3=Balmford, A. |title=Balancing the Earth's accounts|journal=Nature|year=1999|volume=401|issue=6751|pages=323–324|doi=10.1038/43774|pmid=16862091|bibcode=1999Natur.401..323J|s2cid=4410695}}</ref><ref name="Robin et al 2003">{{cite book|last=Robin|first=S.|title=Perverse Subsidies and the Implications for Biodiversity: A review of recent findings and the status of policy reforms|year=2003|publisher=Vth World Parks Congress: Sustainable Finance Stream.|location=Durban, South Africa|url=http://conservationfinance.org/guide/WPC/WPC_documents/Overview_PanB_Wolcott_v2.pdf|archive-url=https://web.archive.org/web/20131203173214/http://conservationfinance.org/guide/WPC/WPC_documents/Overview_PanB_Wolcott_v2.pdf|url-status=dead|archive-date=2013-12-03|author2=Wolcott, R.|author3=Quintela, C.E.}}</ref> ultimately reducing the fiscal health of the government.<ref name="McDonald 2000">{{cite journal|last=McDonald|first=B.D.|author2=Decker, J.W. |author3=Johnson, B.A.M. |title=You don't always get what you want: The effect of financial incentives on state fiscal health|journal=Public Administration Review|year=2020|volume=81|issue=3|pages=365–374|doi=10.1111/puar.13163|doi-access=}}</ref>

Indirectly, they cause [[environmental degradation]] ([[exploitation of natural resources|exploitation of resources]], pollution, loss of landscape, misuse and overuse of supplies) which, as well as its fundamental damage, acts as a further brake on economies; tend to benefit the few at the expense of the many, and the rich at the expense of the poor; lead to further polarization of development between the Northern and Southern hemispheres; lower global market prices; and undermine investment decisions reducing the pressure on businesses to become more efficient.<ref name="Myers 1998a" /><ref name="Robin et al 2003" /><ref name="van beers and van den bergh 2009">{{cite journal
 | last1 = van Beers
 | first1 = Cees
 | last2 = van den Bergh
 | first2 = Jeroen CJM
 | title = Environmental Harm of Hidden Subsidies: Global Warming and Acidification
 | journal = Ambio: A Journal of the Human Environment
 | year = 2009
 | volume = 38
 | issue = 6
 | pages = 339–341
 | doi = 10.1579/08-A-616.1
 | pmid = 19860158
 | url = http://dare.ubvu.vu.nl/bitstream/1871/10427/1/f18.pdf
 | access-date = 2019-09-18
 | archive-date = 2011-09-03
 | archive-url = https://web.archive.org/web/20110903123138/http://dare.ubvu.vu.nl/bitstream/1871/10427/1/f18.pdf
 | url-status = live
 }}</ref> Over time the latter effect means support becomes enshrined in human behaviour and business decisions to the point where people become reliant on, even addicted to, subsidies, "locking" them into society.<ref name="van beers and de moor 1998">{{cite journal|last=van Beers|first=C.|author2=de Moor, A.|title=Perverse subsidies, international trade and the environment|journal=Planejamento e Políticas Públicas|year=1998|volume=18|pages=49–69|url=http://www.en.ipea.gov.br/ppp/index.php/PPP/article/viewFile/98/101|access-date=2013-09-08|archive-date=2016-03-04|archive-url=https://web.archive.org/web/20160304213322/http://www.en.ipea.gov.br/ppp/index.php/PPP/article/viewFile/98/101|url-status=dead}}</ref>

Consumer attitudes do not change and become out-of-date, off-target and inefficient;<ref name="Myers 1998a" /> furthermore, over time people feel a sense of historical right to them.<ref name="van beers and van den bergh 2009" />