What type of policy would be an example of a government subsidy?

Question

a. Taxing all carbon emissions
b. Direct payments to encourage renewable energy use
c. Banning certain pollutants
d. Implementing stricter automotive fuel standards

Answer 1

b. Direct payments to encourage renewable energy use

This option exemplifies a government subsidy, as it involves financial support provided by the government to promote a specific activity or industry, in this case, the use of renewable energy.