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Using the incentive theory explain the following economic policy: 1. a.Why do governments subsidies energy-efficient heating/cooling appliances? b.What is the positive and negative ,direct and

Using the incentive theory explain the following economic policy:

1. a.Why do governments subsidies energy-efficient heating/cooling appliances?

b.What is the positive and negative ,direct and indirect incentives when governments subsidies energy-efficient heating/cooling appliances

2 . a .Why do governments tax more polluting industries?

b.What is the positive and negative ,direct and indirect incentives when governments tax more polluting industries?

Provide examples and references

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