Arrange the following steps in the correct order to illustrate how government subsidies can internalize externalities and promote social welfare.

Government subsidies help to address externalities, which are costs or benefits that affect people who are not directly involved in an economic transaction. First, the government identifies an activity that has positive externalities, like education or renewable energy, which benefits society as a whole. Then, to encourage more of this activity, the government provides financial support, or subsidies, to individuals or businesses involved in it. This makes the activity cheaper and more attractive, leading to increased participation. For example, if the government gives subsidies to solar panel installations, more people will adopt solar energy, reducing pollution and benefiting everyone in the community.