Using a Country of Your Choice as an Example, Demonstrate How the Government Seeks to Compensate for Market Failures.
Question… Using a country of your choice as an example, demonstrate how the government seeks to compensate for market failures.
Name: Alex Dagnall
Word count: 2382
Seminar tutor name: Lawrence Green.
Group Number: 5Q4Z0008/9/Tutorial/A/09
In my essay I am going to talk about the way in which the UK government deals with market failures and the several approaches they can and have taken with the aim of preventing certain aspects of market failure from re-occurring. I will be particularly focusing on the way to government uses taxation as a way of compensating for market failures and the numerous types of market failure that they have to deal with, on a day to day basis.
Firstly, the concept of market failure must be explained; it is when a certain market is left to operate without any form of Government intervention and without this intervention, the allocation of goods and services by this free market is not efficient. The UK government have many options available to them, in terms of ways they are able intervene in circumstances where market failures occur. However, one of the most commonly used is taxation. Consider any market failure; the over consumption of cigarettes and alcohol, the overuse of roads and aeroplanes. They are all heavily taxed, and taxation is one method I will be focusing on during this essay. A topic that is becoming more and more pivotal to Governments plans by the decade is the environment. Technology has continued to improve over the years and has enabled us to understand the amount of pollution that’s been produced as a bi-product of our output each year. The importance of this subject was shown not only by Britain, but some of the most powerful nations in the world including USA, China, India and the whole of the EU when the Kyoto treaty was signed in 1997. This was an agreement where all nations involved agreed to legally binding reductions in their emissions of carbon dioxide by 2010. [
Name: Alex Dagnall
Word count: 2382
Seminar tutor name: Lawrence Green.
Group Number: 5Q4Z0008/9/Tutorial/A/09
In my essay I am going to talk about the way in which the UK government deals with market failures and the several approaches they can and have taken with the aim of preventing certain aspects of market failure from re-occurring. I will be particularly focusing on the way to government uses taxation as a way of compensating for market failures and the numerous types of market failure that they have to deal with, on a day to day basis.
Firstly, the concept of market failure must be explained; it is when a certain market is left to operate without any form of Government intervention and without this intervention, the allocation of goods and services by this free market is not efficient. The UK government have many options available to them, in terms of ways they are able intervene in circumstances where market failures occur. However, one of the most commonly used is taxation. Consider any market failure; the over consumption of cigarettes and alcohol, the overuse of roads and aeroplanes. They are all heavily taxed, and taxation is one method I will be focusing on during this essay. A topic that is becoming more and more pivotal to Governments plans by the decade is the environment. Technology has continued to improve over the years and has enabled us to understand the amount of pollution that’s been produced as a bi-product of our output each year. The importance of this subject was shown not only by Britain, but some of the most powerful nations in the world including USA, China, India and the whole of the EU when the Kyoto treaty was signed in 1997. This was an agreement where all nations involved agreed to legally binding reductions in their emissions of carbon dioxide by 2010. [