Under a subsidy system,the government gives firms tax credits,low-interest loans,and/or grants if they install pollution control devices or change their production methods to reduce harmful emissions.

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Under a subsidy system, the government provides financial incentives to businesses to encourage them to adopt environmentally-friendly practices such as installing pollution control devices or reducing harmful emissions. This is often done through tax credits, low-interest loans, or grants.

Under a Subsidy System,the Government Gives Firms Tax Credits,low-Interest Loans,and/or