Some stated objectives of governments for using subsidies

This Section discusses the main objectives governments claim to pursue with subsidies including industrial development, innovation and support for national champions, environment related objectives and redistribution. Under the broad category “redistribution”, three more specific objectives are examined: the use of subsidies for regional policy purposes, adjustment support for declining industries and universal service obligations. This selection does not pretend to be exhaustive but it covers some of the most important objectives pursued by governments in developing and developed countries.