Governments Boost Sustainable Farming, Improve Profits and Consumer Welfare
Government interventions like taxes and subsidies can help farmers try out new, more sustainable farming methods. These methods can boost productivity, reduce environmental harm, and adapt to changing conditions. The study found that using only taxes can encourage farmers to experiment with new methods, but it may not be the best for overall well-being. On the other hand, using only subsidies can lead to higher social welfare, but may not encourage as much experimentation. The research suggests that policies need to balance these factors to achieve the best outcomes for both farmers and society.