Fiscal Architecture & Subsidy Dependency
Structural assessment of the sector's fiscal bond with the state. Defines whether the sector is an 'Extraction Source' or 'Supported Infrastructure' and the resulting vulnerability to fiscal policy shifts.
Fiscal Architecture & Subsidy Dependency is one of the strongest predictors of overall industry risk (r = 0.51). Industries that score high on this attribute are significantly more likely to show elevated risk across multiple pillars.
Scoring Scale (0-5)
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0Fiscal Neutral
Standard corporate taxation applies; no specialized levies, carbon taxes, or industry-specific subsidies.
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1Incentivized
Minor structural tax breaks (e.g., R&D credits, regional development zones) designed to nudge behavior without being vital for survival.
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2Revenue Pillar
Subject to stable, specialized excise or 'sin' taxes; the state is structurally dependent on the sector's revenue (e.g., tobacco, alcohol, standard fuel duties).
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3Transition-Dependent
Operation is structurally tied to fiscal 'carrots or sticks' (e.g., carbon pricing, green energy credits); P&L is sensitive to the removal of these frameworks.
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4Windfall Target
Subject to highly volatile, rent-seeking taxation based on commodity price spikes (e.g., 'Windfall' mining taxes, export duties) making long-term planning difficult.
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5State-Sustained (Ward)
The sector cannot exist at market prices without massive, permanent sovereign subsidies or price floors (e.g., loss-making national airlines, specific crop supports, shipyards).
Score Distribution
How 129 industries score on this attribute
v2.0 prioritizes 'Fiscal Logic' (Neutral vs. Sustained) over current 'Effective Tax Rate'.
Industry Examples
129 industriesReal industries from our analysis demonstrating each score level for Fiscal Architecture & Subsidy Dependency.
47 more industries
Extraction of crude petroleum ISIC 610 Processing and preserving of meat ISIC 1010 Manufacture of dairy products ISIC 1050 Preparation and spinning of textile fibres ISIC 1311 Printing ISIC 1811 Manufacture of refined petroleum products ISIC 1920 Manufacture of glass and glass products ISIC 2310 Manufacture of basic iron and steel ISIC 2410 Manufacture of structural metal products ISIC 2511 Manufacture of computers and peripheral equipment ISIC 2620 Manufacture of batteries and accumulators ISIC 2720 Manufacture of agricultural and forestry machinery ISIC 2821 Manufacture of motor vehicles ISIC 2910 Manufacture of parts and accessories for motor vehicles ISIC 2930 Building of ships and floating structures ISIC 3011 Manufacture of railway locomotives and rolling stock ISIC 3020 Manufacture of air and spacecraft and related machinery ISIC 3030 Electric power generation, transmission and distribution ISIC 3510 Water collection, treatment and supply ISIC 3600 Materials recovery ISIC 3830 Construction of buildings ISIC 4100 Construction of roads and railways ISIC 4210 Construction of utility projects ISIC 4220 Sale of motor vehicles ISIC 4510 Freight transport by road ISIC 4923 Sea and coastal freight water transport ISIC 5012 Passenger air transport ISIC 5110 Courier activities ISIC 5320 Motion picture, video and television programme production activities ISIC 5911 Web portals ISIC 6312 Other monetary intermediation ISIC 6419 Real estate activities with own or leased property ISIC 6810 Real estate activities on a fee or contract basis ISIC 6820 Accounting, bookkeeping and auditing activities; tax consultancy ISIC 6920 Architectural and engineering activities and related technical consultancy ISIC 7110 Research and experimental development on natural sciences and engineering ISIC 7210 Activities of call centres ISIC 8220 Organization of conventions and trade shows ISIC 8230 Packaging activities ISIC 8292 Higher education ISIC 8530 Hospital activities ISIC 8610 Medical and dental practice activities ISIC 8620 Other human health activities ISIC 8690 Residential nursing care facilities ISIC 8710 Social work activities without accommodation for the elderly and disabled ISIC 8810 Library and archives activities ISIC 9101 Operation of sports facilities ISIC 931129 more industries
Distilling, rectifying and blending of spirits ISIC 1101 Manufacture of consumer electronics ISIC 2640 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus ISIC 2710 Manufacture of domestic appliances ISIC 2750 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines ISIC 2811 Manufacture of bicycles and invalid carriages ISIC 3092 Manufacture of furniture ISIC 3100 Manufacture of jewellery and related articles ISIC 3211 Manufacture of medical and dental instruments and supplies ISIC 3250 Wholesale of computers, computer peripheral equipment and software ISIC 4651 Retail sale of clothing, footwear and leather articles in specialized stores ISIC 4771 Retail sale via mail order houses or via Internet ISIC 4791 Accommodation ISIC 55 Short term accommodation activities ISIC 5510 Restaurants and mobile food service activities ISIC 5610 Beverage serving activities ISIC 5630 Sound recording and music publishing activities ISIC 5920 Television programming and broadcasting activities ISIC 6020 Wired telecommunications activities ISIC 6110 Wireless telecommunications activities ISIC 6120 Other information technology and computer service activities ISIC 6209 Non-life insurance ISIC 6512 Other activities auxiliary to financial service activities ISIC 6619 Legal activities ISIC 6910 Travel agency activities ISIC 7911 General cleaning of buildings ISIC 8121 Other education n.e.c. ISIC 8549 Creative, arts and entertainment activities ISIC 9000 Gambling and betting activities ISIC 920031 more industries
Manufacture of wearing apparel, except fur apparel ISIC 1410 Manufacture of soap and detergents, cleaning and polishing preparations, perfumes and toilet preparations ISIC 2023 Manufacture of pharmaceuticals, medicinal chemical and botanical products ISIC 2100 Manufacture of plastics products ISIC 2220 Manufacture of communication equipment ISIC 2630 Manufacture of measuring, testing, navigating and control equipment ISIC 2651 Manufacture of irradiation, electromedical and electrotherapeutic equipment ISIC 2660 Manufacture of lifting and handling equipment ISIC 2816 Repair of fabricated metal products ISIC 3311 Electrical installation ISIC 4321 Plumbing, heat and air-conditioning installation ISIC 4322 Building completion and finishing ISIC 4330 Other specialized construction activities ISIC 4390 Maintenance and repair of motor vehicles ISIC 4520 Sale of motor vehicle parts and accessories ISIC 4530 Warehousing and support activities for transportation ISIC 52 Warehousing and storage ISIC 5210 Software publishing ISIC 5820 Computer programming activities ISIC 6201 Computer consultancy and computer facilities management activities ISIC 6202 Data processing, hosting and related activities ISIC 6311 Other credit granting ISIC 6492 Life insurance ISIC 6511 Technical testing and analysis ISIC 7120 Specialized design activities ISIC 7410 Veterinary activities ISIC 7500 Activities of employment placement agencies ISIC 7810 Private security activities ISIC 8010 Landscape care and maintenance service activities ISIC 8130 Activities of professional membership organizations ISIC 9412 Repair of computers and peripheral equipment ISIC 95118 more industries
Activities of insurance agents and brokers ISIC 6622 Advertising ISIC 7310 Market research and public opinion polling ISIC 7320 Renting of video tapes and disks ISIC 7722 Combined facilities support activities ISIC 8110 Combined office administrative service activities ISIC 8211 Activities of collection agencies and credit bureaus ISIC 8291 Hairdressing and other beauty treatment ISIC 9602Archetype-Specific Considerations
This attribute has special risk drivers when applied to certain industry archetypes:
Driven by physics, transformation, and CapEx.
Risk Driver: Carbon Border Adjustment Mechanism (CBAM) / Green Subsidy Race
Driven by biology, nature, and decay. Time is the enemy.
Risk Driver: Agricultural Support & Food Price Caps
Driven by liquidity, risk pricing, and balance sheets.
Risk Driver: Financial Transaction Taxes & Systemic Levies
Related Strategies
Strategies that incorporate Regulatory & Policy Environment pillar analysis (7 strategies):
Playbooks Using This Attribute
1 playbook use RP09 in their feasibility checks:
Rules Using This Attribute
3 risk rules use RP09 in their trigger conditions: