How many products are subsidized on one and and regulated on the other? Corn is subsidized in production, but then when those subsidies yield health-hindering quantities of cheap sweetener (corn syrup), we attempt to regulate its application and consumption.
Now, we'll subsidize growth again, but then regulate the greenhouse emissions on the other.
It is one thing for government regulation to address externalities (good). It is another to address externalities that government helped create in the first place!
Incredibly, ethanol is subsidized more than once. Corn itself is subsidized and then there's a credit to blenders. And on top of that fuel sellers are required to sell a certain amount.
I don't believe it's the case any more, but for years the US government funded anti-smoking campaigns while simultaneously subsidizing tobacco farming.
from political and management standpoint it's the same thing you as a society wanted regulatory institutions to exist and do their best, so they did. Don't like the result? Good luck fixing it without firing all those people who messed it up in the first place.
Now, we'll subsidize growth again, but then regulate the greenhouse emissions on the other.
It is one thing for government regulation to address externalities (good). It is another to address externalities that government helped create in the first place!