A subsidy granted to a polluting firm would be one way of integrating external costs.

Name: A subsidy granted to a polluting firm would be one way of integrating external costs.
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A subsidy to a polluting firm would not integrate external costs; instead, it might encourage more pollution. Integrating external costs typically involves taxing or penalizing the polluter to internalize the environmental damage costs.

A Subsidy Granted to a Polluting Firm Would Be One