Real-World Examples - IB Economics Paper 1

An example of South Africa introducing a vaping tax to reduce negative externalities associated with e-cigarette use and protect public health.

An example of government intervention during the Great Depression, where U.S. farmers received subsidies under the Agricultural Adjustment Act (AAA) to reduce overproduction and stabilize prices.

An example of EU governments using subsidies and support schemes to promote renewable energy, correct positive externalities, and reduce welfare loss in energy markets.