Government subsidies to farmers and fishing fleets promote the overexploitation of natural capital.

Question

Quizplus · Accepted Answer

Government subsidies can create incentives for farmers and fishing fleets to produce more than the market demand or to fish more than what is sustainable, leading to the overexploitation of natural resources. This can have negative environmental impacts in the long term, as well as economic and social consequences for small-scale fishers and local communities.

Government Subsidies to Farmers and Fishing Fleets Promote the Overexploitation