The drivers and impacts of subsidies to steel firms

Annex A. Indicative OECD matrix of support measures, with illustrative examples

 

		Statutory or Formal Incidence (to whom and what a transfer is first given)
		Production							Consumption
		A: Output returns	B: Enterprise income	C: Cost of intermediate inputs	Costs of Value-Adding Factors				H: Unit cost of consumption
					D: Labour	E: Land and natural resources	F: Capital	G: Knowledge
Transfer Mechanism (how a transfer is created)	1: Direct transfer of funds	Output bounty or deficiency payment	Operating grant	Input-price subsidy	Wage subsidy	Capital grant linked to acquisition of land	Grant tied to the acquisition of assets, including foreign ones	Government R&D	Unit subsidy
	2: Tax revenue foregone	Production tax credit	Reduced rate of income tax	Reduction in excise tax on input	Reduction in social charges (payroll taxes)	Property-tax reduction or exemption	Investment tax credit	Tax credit for private R&D	VAT or excise-tax concession
	3: Other government revenue foregone		Waiving of administrative fees or charges	Under-pricing of a government good or service		Under-pricing of access to government land or natural resources	Debt forgiveness or restructuring	Government transfer of intellectual property rights	Under-pricing of access to a natural resource harvested by final consumer
	4: Transfer of risk to government	Government buffer stock	Third-party liability limit for producers		Assumption of occupational health and accident liabilities	Credit guarantee linked to acquisition of land	Loan guarantee; non-market-based debt-equity swap and equity injection		Price-triggered subsidy
	5: Induced transfers	Import tariff or export subsidy; local-content requirements; discriminatory government procurement	Monopoly concession	Monopsony concession; export restriction; dual pricing	Wage control	Land-use control	Credit control (sector-specific)	Deviations from standard IPR rules	Regulated price; cross subsidy
	Including advantages conferred through state enterprises			Provision of below-cost electricity by a state-owned utility			Below-market loan by a state-owned bank

Source: (OECD, 2023[24])