Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
They decrease the overall market supply and improve social equity.
B
They increase production costs for renewable energy and lead to market inefficiencies.
C
They enhance the competitiveness of renewable energy sources, leading to lower prices and improved social equity.
D
They have no significant effect on market dynamics or social equity.
Understanding the Answer
Let's break down why this is correct
Answer
Government subsidies for renewable energy help make clean energy sources like solar and wind more affordable. When the government provides financial support, it lowers the cost of producing and using renewable energy, encouraging more businesses and households to adopt these technologies. This shift can create jobs in the renewable energy sector and reduce reliance on fossil fuels, which can benefit the environment. However, if not designed carefully, subsidies might favor larger companies over smaller ones, leading to social equity issues where only wealthier individuals or businesses can fully benefit. For example, if a government gives tax breaks for solar panels, those who can afford to install them will save money, but low-income families might miss out unless additional support is provided.
Detailed Explanation
Subsidies help renewable energy sources compete better. Other options are incorrect because Some might think subsidies reduce supply; It's a common belief that subsidies raise costs.
Key Concepts
renewable energy incentives
economic intervention
social equity.
Topic
Government Subsidies and Market Effects
Difficulty
hard level question
Cognitive Level
understand
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