The correct answer is option 1, which states that both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Assertion (A) states that the overall consumption of energy can be reduced by cutting down the generation of wastes. This is true because waste generation and disposal processes require energy. By reducing waste generation, less energy is needed for waste disposal, leading to an overall reduction in energy consumption.

Reason (R) states that energy is consumed when wastes are incinerated. This is also true because incinerating waste requires a significant amount of energy to combust the waste materials. The energy generated from the incineration process can be harnessed, but the overall energy consumption is still high.

Therefore, both A and R are true, and R provides the correct explanation for A. By cutting down waste generation, we can reduce the need for waste disposal methods like incineration, which in turn leads to a reduction in overall energy consumption.