ABSTRACT
The use of treasure resources in policy designs to allow states to obtain their substantive goals is very common and is compatible with most modes of governance, especially market-based ones. All substantive grants are subsidies or ‘unearned savings to offset production costs’ and are one of the oldest forms of financial tool through which governments pay companies, organizations or individuals to do some (un)desired form of activity. The kinds of cash-based tools use the direct transfer of treasure or fiscal resources from governments to some other actor or vice versa in the form of monetary payments. Excise taxes are one treasure-based tool, one that acts as a disincentive to individuals, organizations and groups to undertake specific actions and activities. Both cash and tax or royalty-based transfers are relatively straightforward examples of tools which provide financial incentives and disincentives to policy actors to undertake or refrain from undertaking specific activities encouraged or discouraged by governments.
