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Traditional subsidies, economists contend, generally encourage inefficient farmers to grow unprofitable crops far beyond what consumers actually need, secure in the knowledge that the government will help protect them from loss.
This would be easy and quick but would give misleading answers and could encourage inefficient decisions to be made.
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The more the state intrudes into electronic cash, the more it encourages inefficient notes and coin.
Indeed, fee-for-service payment encourages inefficient provider behavior and generates inequity (3).
As noted above, they may be levied for either revenue or protection, or both, but tariffs are not a satisfactory means of raising revenue, because they tend to encourage economically inefficient domestic production of the dutied item.
The objective of a cost-efficiency profiling system is to encourage cost-inefficient healthcare providers to change their practice patterns by providing feedback on their cost efficiency.
The proposal is intended to encourage businesses to replace inefficient boilers with systems that make use of both the heat and the electrical power that they produce.
The free power in agriculture continued for many years, and the existing pump horse power based pricing of electricity encourage over-pumping and inefficient and often wasteful use of groundwater.
In doing so, not only would President Obama act in line with a strong Executive tradition of creating immigration policy, but he may also encourage a hapless and inefficient Congress to get it together on immigration reform.
This powerful group of private contractors encourages reliance on inefficient software and hardware that is expensive to acquire and to maintain.
On the other hand, high oil prices might make coal power more attractive or encourage countries to keep old, inefficient power stations in service.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com