The public control control and its limits The many faces of welfare

1. THE ROLE OF THE STATE 2. THE LIMITS OF THE GOVERNMENT INTERVENTION 3. THE INTERVENTIONS WITH THE SUPPORT OF INTERST GROUPS 3.1 The prices policies 3.2 The distortion effects 3.3 The political market 2. THE LIMITS OF THE GOVERNMENT INTERVENTION 3. THE INTERVENTIONS WITH THE SUPPORT OF INTERST GROUPS 3.1 The prices policies 3.2 The distortion effects 3.3 The political market

4. - GOVERNMENT AND SOCIAL RULES 4.1 Normative dilemma 4.2 The long period effects

THE PUBLIC INTERVENTION AND ITS LIMITS The role of the country is to rebalance the perverse effects of the demonstration in themarket economy, establish rules, fix limits, put taxes and penalty.

THE LIMITS OF THE GOVERNMENT INTERVENTION n It is not necessary that the state does not act in the interest of community (or the whole comuntity  interest groups) n It is not necessary that the state is informed on the environmental consequences of the behavior

n n It is not necessary that the state is able to apply effective control rules. n n It is not necessary that the state is able to apply effective control rules. THE LIMITS OF THE GOVERNMENT INTERVENTION

Objective:. To sustain The agricultural incomes. To guarantee the availability of the products. To check The prices to the consumption But also. To defend the affairs of the agricultural lobby Objective:. To sustain The agricultural incomes. To guarantee the availability of the products. To check The prices to the consumption But also. To defend the affairs of the agricultural lobby Example: The agricultural community policy Example: The agricultural community policy

Taxing the importation of foreign alimentary products and subsidizing the internal agriculture. The European community sustains the inefficient community productions Taxing the importation of foreign alimentary products and subsidizing the internal agriculture. The European community sustains the inefficient community productions

- A tax payer, the pagane, the cost of an aid - A consumer, the pagane price and a high price - A consumer, the pagane price and a high price - A tax payer, the pagane, the cost of an aid - A consumer, the pagane price and a high price - A consumer, the pagane price and a high price The interest of sheltered agriculture expense:

.... With an incentive to increase the cultivated surface and the cultivated surface and to intensify the cultivation.... With an incentive to increase the cultivated surface and the cultivated surface and to intensify the cultivation Enviromental danger

level In the countries in the development course, the price is maintained under the level of market: level In the countries in the development course, the price is maintained under the level of market:. To subsidize The consumptions of the poor men. To stimulate the development of the raw materials with low prices. To subsidize The consumptions of the poor men. To stimulate the development of the raw materials with low prices

DISTORTION EFFECTS - The public resources expenses in spite it is low, it could be used in a more productive way - We stimulate an excessive and inefficient use of subsidized property with possibility of wastes - The public resources expenses in spite it is low, it could be used in a more productive way - We stimulate an excessive and inefficient use of subsidized property with possibility of wastes

DISTORTION EFFECTS - Many is devoted to the activities sustained from the state to get the benefit, and therefore more productive activity resources are dissuaded

The government subsidies create, a political market or a market of the corruption in which the public resources are distributed according to private affairs in contrast with those public…. The government subsidies create, a political market or a market of the corruption in which the public resources are distributed according to private affairs in contrast with those public….

.... Without some consideration for The environmental impact..... Without some consideration for The environmental impact.

“External” control The action of the less ‘spatial’ state norm can therefore destroy a social pre-existing norm that would have emerged by the effect of the cultural evolution. “Internal” control State norm Social norm

The distortion of the market mechanism creates The distortion of the market mechanism creates incomes and privileges that once realized are transformed to rights difficulty reversible and prevent the achievment of an efficient allocation of resources.

The logic of the state intervention should be that to make the economic agents aware of the evaluation of the environmental impact of their behavior....

.... And not to encourage the behavior that favors the diseconomisation of the environmental resource