Question

How can subsidies given to an industry reduce air pollution?

Answer 1

1. Subsidies for pollution control involve financial support by the government for activities believed to be environment friendly.
2. The types of subsidies include grants, low interest loans, favourable tax treatment, etc. to have environmental advantages.
3. Research and development, information dissemination, and other services provided by the government that are below their true cost could also be considered subsidies.
4. Subsidies are often funded by the fees charged on environmentally harmful products or activities.
5. For example, advance disposal fees provide revenues to subsidise the proper disposal of products after their use.
6. For the types of subsidies and how they have been used to address specific environmental problems, the following areas are considered: pollution prevention and control, cleanup of contaminated industrial sites, farming and land preservation, consumer product waste management, citizen monitoring of environmental regulations, alternative fuels, and low-emitting vehicles.