subsidy
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Influencing Innovation: Government’s Role in Subsidizing R&D
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Firms often underinvest in research and development (R&D) when there is no government intervention. There are many uncertainties and risks that discourage firms from investing in R&D, which slows the pace of innovation. To address this problem, governments can provide firms with subsidies to incentivize new product creation or improve…
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Paradox of Subsidy: Could Biofuel subsidies be increasing CO2 emissions?
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A new study finds that biofuel subsidies from 1981-2011 paradoxically may have led to the increase in oil production and greenhouse gas emissions.