Government subsidies ,lead to lower productivity because of lack of incentives. Government subsidy are money paid by the government to help an organization or industry to reduce its cost of its product. The subsidies shift supply curve to the right due to lower price . When government subsidies firm it reduces incentives for firm to cut costs.
I believe the answer is Government subsidies. A subsidy is the form of cash payment or a tax reduction. It is normally given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or economic policy. Tax subsidy; the government can create the same outcome through selective tax breaks as through cash payment. For example, suppose a government sends monetary assistance that reimburses 15% of all health expenditures to a group that is paying 15% income tax. Tax subsidies are also known as tax expenditures.
Reduces greenhouse gas emissions that contribute to global climate change. Helps sustain the environment for future generations. Saves money. Reduces the amount of waste that will need to be recycled or sent to landfills and incinerators.
