The market undervalues investments in energy efficiency due to the existence of externalities.
举一反三
- Which of the following statements is correct? A: Government should tax goods with either positive or negative externalities. B: Government should tax goods with negative externalities and subsidize goods with positive externalities. C: Government should subsidize goods with either positive or negative externalities. D: Government should tax goods with positive externalities and subsidize goods with negative externalities.
- In a competitive market with no externalities,
- When externalities are present in a market, the well-being of market participants
- The two main causes of market failure are externalities and market power.
- Market failure in the form of externalities arises when the market fails to achieve equilibrium.