Which one is an example of an industrial policy?

A Pigouvian tax.

Government interference.

A Pigouvian subsidy.

Tradable emissions permit.

1 answer

An example of an industrial policy from the options provided is Government interference.

Industrial policy generally refers to strategic governmental interventions in various industries to promote economic growth, enhance competitiveness, or achieve specific critical objectives. While Pigouvian taxes, subsidies, and tradable emissions permits are tools often associated with environmental and economic regulation, "government interference" more broadly signifies direct engagement in shaping industry practices, which aligns with the definition of industrial policy.