How does a mixed economy address environmental sustainability?

Economics Mixed Economy Questions



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How does a mixed economy address environmental sustainability?

A mixed economy addresses environmental sustainability by implementing a combination of market-based approaches and government regulations. It recognizes the importance of balancing economic growth with environmental protection. The government sets regulations and standards to ensure that businesses and individuals operate in an environmentally responsible manner. This includes measures such as pollution control, resource conservation, and sustainable development. Additionally, the government may provide incentives and subsidies for businesses that adopt environmentally friendly practices. The market-based approaches involve creating economic incentives for individuals and businesses to make environmentally conscious choices. This can be done through the use of taxes, subsidies, and tradable permits. Overall, a mixed economy aims to promote sustainable development by integrating environmental considerations into economic decision-making processes.