A producer subsidy involves the government providing businesses with and/or other support which is typically designed to ease pressure on of and provide incentives for the business to supply more to markets and/or undertake some form of investment which helps to generate more activity in particular markets. In contrast, a consumer subsidy involves the government providing consumers with some form of financial or other assistance which is designed to encourage an increase in some form of as a means of supporting a particular type of activity. A key point of difference between the two types of subsidies is that a producer subsidy will ultimately generate side benefits which leads to greater output and lower prices whereas a consumer subsidy generates side benefits which also leads to greater output but generates higher prices.