Abstract
The effectiveness of subsidies as a well-established public policy tool has started to be questioned with the deterioration of environmental conditions. For this reason, how the subsidies are applied, the total size they reach in the world and in various countries, and their effects are being increasingly examined. Environmentally harmful subsidies (EHS) on global and national scale have reached such large amounts that the EHS rate in a single sector can exceed 1% of the global gross domestic product (GDP). The most common EHS areas are agriculture, forestry, fossil fuel, transport, and fishing. In the face of these developments, some countries have taken important steps towards full-cost pricing instead of subsidy policy in recent years. This study aims to generate a basis for a different classification by highlighting the environmental effects of subsidies, which are not considered much, and to analyze the results of subsidy implementation around the world. According to the results obtained from the analysis, long-term and very general subsidy applications lead to EHS due to excessive consumption of natural resources and increased waste generation.