Question

Subsidies also distort resource allocation by encouraging excessive energy consumption, artificially promoting capital-intensive industries, reducing incentives for investment in renewable energy, and accelerating the depletion of natural resources."____________

Answer 1

Answer:

True

Explanation:

This is a negative effect of energy subsidizes. Usually governments decide to subsidize energy consumption as a way of helping low income consumers and businesses. But at the end that doesn't happen and the results are quite the opposite. Most of the subsidies are taken by higher income families, e.g. big luxury homes use a lot of electricity. Subsidies end up reinforcing inequalities and the lower income families usually pay a higher percentage of the cost of having them.