Question

n an attempt to promote renewable energy, the government provides an annual rebate to those who install solar panels on their roofs. What type of economic policy would this represent?

Answer 1

The government's annual rebate for solar panel installations is a type of economic policy designed to promote renewable energy, contribute to a sustainable economy, and support environmental efforts in transitioning toward a solar-dominated energy landscape.

Step-by-step explanation:

The annual rebate provided by the government to individuals installing solar panels on their roofs is an example of an economic policy aimed at promoting renewable energy. This type of policy is part of a broader strategy to encourage sustainable practices and reduce reliance on fossil fuels. In this context, the economic policy functions as an incentive mechanism to support the transition towards cleaner energy sources, recognizing that economic well-being is closely tied to energy use, and higher standards of living typically require higher levels of energy consumption.

Such policies not only contribute to a country’s energy security by reducing dependence on foreign oil but also play a crucial role in the global effort to address environmental concerns such as climate change and pollution. The goal is to create a sustainable economy that leans on renewable energy sources like solar power, thus becoming a miniature model of what society may one day achieve in a solar-dominated energy landscape.

Answer 2

Answer: Fiscal policy

Explanation: Fiscal policy refers to the policies implemented by the government fro making the economy stable by using the tax collection and expenditure changes.

As per the given case, the government provide tax benefits in the forms of rebates for promoting the use of renewable energy resources. Hence we can say that government uses fiscal policy for achieving their objective.