Subsidies as a means to solve market failure: Lessons for China from EU state aid policy

Niels Philipsen, Jingyuan Ma (Translator)

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Abstract

This paper discusses the role of subsidies in correcting market failures from the
perspective of EU State aid policy. In recent years, one can notice a clear shift towards a ‘more economic approach’ and a stronger focus on efficiency by the European Commission. However, this stronger focus on efficiency with regard to a politically sensitive area such as State aid is not self evident, and also raises the question why other jurisdictions do not have a similar control on market intervention by States (US) or provinces (China). It also raises the question whether controlling the efficiency of government spending should be a task of the EU rather than Member States. The aim of this paper is therefore to critically assess the changing goals of EU State aid policy, from market integration and equity to efficiency and fiscal discipline. Possible implications for China, in the form of a stricter control on subsidies, are also discussed.
Translated title of the contributionSubsidies as a means to solve market failure: Lessons for China from EU state aid policy
Original languageChinese
Pages (from-to)163-177
Number of pages15
Journal财经法学 (Law and Economy)
Volume2018
Issue number4
Publication statusPublished - 22 Jul 2018

Keywords

  • State aid
  • market failure
  • EU law
  • Law and Economics
  • subsidies

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