Externalities, Market Failures, and Policy Interventions

2019 ◽  
pp. 66-87
Author(s):  
Steven C. Hackett
Keyword(s):  
Market Failures ◽  
Policy Interventions

scholarly journals A Portfolio Policy Package to Reduce Greenhouse Gas Emissions

Atmosphere ◽  
2020 ◽  
Vol 11 (4) ◽  
pp. 337 ◽  
Author(s):  
John Freebairn
Keyword(s):  
Greenhouse Gas Emissions ◽  
Greenhouse Gas ◽  
Low Cost ◽  
Market Failures ◽  
Gas Emissions ◽  
Policy Interventions ◽  
Production And Consumption ◽  
Reduce Emissions ◽  
The Many ◽  
Portfolio Policy

Arguments for a portfolio of price, regulation and subsidy policy interventions to reduce the production and consumption of greenhouse gas emissions are presented. The operation and effects of each intervention are described and compared. A combination of different sets of market failures across the many potential decision changes available to producers and consumers to reduce emissions and different properties of the mitigation instruments support a portfolio approach to reduce emissions at a low cost.

scholarly journals Evaluating Strategies to Reduce Arsenic Poisoning in South Asia: A View from the Social Sciences

2020 ◽  
Vol 37 (2) ◽  
pp. 21-44
Author(s):  
Matthew Krupoff ◽  
Ahmed Mushfiq Mobarak ◽  
Alexander van Geen
Keyword(s):  
South Asia ◽  
World Health ◽  
Human Consumption ◽  
Contaminated Water ◽  
Well Testing ◽  
Market Failures ◽  
Deep Well ◽  
Policy Interventions ◽  
Health Organization ◽  
Technical Solutions

The World Health Organization has labeled the problem of arsenic contamination of groundwater in South Asia as “the largest mass poisoning in human history.” Various technical solutions to the problem fall into one of two broad categories: (i) cleaning contaminated water before human consumption and (ii) encouraging people to switch to less contaminated water sources. In this paper, we review research on the behavioral, social, political, and economic factors that determine the field-level effectiveness of the suite of technical solutions and the complexities that arise when scaling such solutions to reach large numbers of people. We highlight the conceptual links between arsenic-mitigation policy interventions and other development projects in Bangladesh and elsewhere, as analyzed by development economists, that can shed light on the key social and behavioral mechanisms at play. We conclude by identifying the most promising policy interventions to counter the arsenic crisis in Bangladesh. We support a national well-testing program combined with interventions that address the key market failures (affordability, coordination failures, and elite and political capture of public funds) that currently prevent more deep-well construction in Bangladesh.

The labor-managed firm, Oliver Williamson, and me

2021 ◽  
pp. 1-18
Author(s):  
Gregory K. Dow
Keyword(s):  
Empirical Evidence ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Market Failures ◽  
Policy Interventions ◽  
Theoretical Structure

Abstract More than 30 years ago, I engaged in a debate with Oliver Williamson over the theoretical structure of transaction cost economics (TCE). This debate had its origins in our conflicting views of the labor-managed firm (LMF). Williamson believed that such firms were rare due to their inefficiency while I believed they might be rare due to market failures. Here I clarify my criticisms of TCE and contrast Williamson's view of the LMF with my own approach. I discuss empirical evidence that can distinguish between these two approaches and take up Williamson's challenge to identify policy interventions that could yield net social gains.

scholarly journals A Survey-Based Qualitative Analysis of the Institutional Structures and Policy Measures in the Shea Sector of Ghana

2018 ◽  
Vol 9 (2) ◽  
pp. 24 ◽  
Author(s):  
Martha Adimabuno Awo
Keyword(s):  
Community Support ◽  
Northern Region ◽  
Market Failures ◽  
State Institutions ◽  
Policy Interventions ◽  
Institutional Structures ◽  
Northern Regions ◽  
In The Wild ◽  
Policy Measures ◽  
Local Use

Shea is an important tree crop for women in the three impoverished northern regions of Ghana and is considered to be a major source of poverty alleviation in these regions. The crop is picked in the wild as nuts mainly by women who sell the nuts to processors. These nuts are processed into butter and soap for local use and/or for exports. Institutional structures, from a variety sources including the cultural environment, community support systems and the State regulatory and support mechanisms, shape the opportunities, constraints and obstacles facing women pickers and local processors who rely on shea as an important source of income and economic empowerment. Both State and non-State institutions in Ghana have designed various policy interventions and programmes for the shea sector with the objective of reducing market failures of the sector and to improve incomes of shea-producing households. Based on a relatively large survey of 405 shea-producing households in selected districts of the Northern Region of Ghana, this paper discusses the institutional structures and policy measures in the shea sector in Ghana. From the perspective of the survey respondents, there is not enough coordination of programmes and policies among the various institutions in the shea sector. Respondents feel that the shea sector is largely unregulated; various actors take actions mainly for their own benefits and not necessarily for the benefit of the whole sector. Organised groups of shea-producing households are more likely to improve their chances of being impacted by programmes and policies of State and non-State institutions than unorganized individual shea-producing households.

scholarly journals Evaluating Elements of Demand-Side Policy Imperatives for Biogas from Waste Scheme Diffusion in the UK

2021 ◽  
Vol 14 (5) ◽  
pp. 13
Author(s):  
Abhijeet Acharya ◽  
Lisa A. Cave
Keyword(s):  
Policy Instruments ◽  
Energy Transition ◽  
Developed Countries ◽  
Environmental Benefits ◽  
Supply Side ◽  
Demand Side ◽  
Market Failures ◽  
Policy Model ◽  
Policy Interventions ◽  
The Uk

Over the last decade, demand-side policies are increasingly implemented to correct market failures and overcome the systemic problem in complex social-technical systems such as energy transition. This paradigm shift in policy approach results from realizing that relying solely on supply-side policy instruments to push innovative solutions into the market is insufficient. As part of the energy transition, many developed countries have considered Biogas from Waste (BfW) based on the Anaerobic Digestion (AD) process as a realistic renewable energy source and aim to create social, economic, and environmental benefits for their communities. Despite several policy instruments in the UK over the last ten years, the growth of BfW schemes remains subdued and faces market failures. This paper aims to evaluate elements of demand-side policies focused on addressing market failures to increase the diffusion of BfW schemes in the UK. We discussed effective demand-side policies related to the biogas sector in other European countries like Sweden, Denmark, and Italy. In the analysis, we observed UK’s policy instruments do not effectively address market externalities in the biogas sector. We also observed the biomethane market share in the UK is minimal; there is no market policy for green gas labeling towards demand articulation. The paper also made recommendations for policymakers in the UK to address market failures by proposing a push-pull policy model that combines demand-side policy interventions with supply-side policies.

Food Consumption and Health

2011 ◽  
pp. 715-746 ◽  
Author(s):  
Fabrice Etilé
Keyword(s):  
Policy Evaluation ◽  
Developed Countries ◽  
Future Research ◽  
Market Failures ◽  
Economic Literature ◽  
Historical Trends ◽  
Public Intervention ◽  
Capital Costs ◽  
Policy Interventions ◽  
Current Trends

This article reviews the economic literature on the causes and consequences of current trends in food-related chronic diseases (FRCD) from a policy evaluation viewpoint. It focuses on policy interventions on the consumer side in developed countries. It recalls some key facts regarding historical trends in nutrition and FRCD, and highlights individual heterogeneity that is hidden behind aggregate trends. Some estimates of the medical and human capital costs of FRCD are also provided. It then considers the normative rationales for public intervention: market failures, such as the presence of externalities; and failures of consumer rationality. This article brings together some of the available empirical evidence regarding price and information policies and proposes some directions for future research.

Enlisting Markets in the Conservation and Sustainable Use of Biodiversity in South Asia’s Sundarbans

2013 ◽  
Vol 4 (3) ◽  
pp. 71-86
Author(s):  
Dan Biller ◽  
Ernesto Sanchez-Triana
Keyword(s):  
Economic Value ◽  
Sustainable Use ◽  
Biodiversity Loss ◽  
Market Failures ◽  
Policy Interventions ◽  
Number Of Factors ◽  
Policy Suggestions ◽  
Key Drivers ◽  
Policy Failures ◽  
The Sundarbans

The unique biodiversity of the Sundarbans is threatened by a number of factors, many of which are the direct or indirect result of market failures. Past governmental interventions aiming at protecting biodiversity have been ineffective, while other government efforts have directly or indirectly led to ecosystem degradation. In order to address these challenges, new governmental interventions are needed, particularly those that have the potential to mitigate market failures and address policy failures. This paper discusses how institutional and market failures, particularly the failure to capture the value of biodiversity as a 'public good', are the key drivers of biodiversity loss in the Sundarbans region of India. It argues that policy interventions to address these failures, as well as other measures that foster the development of markets that recognize the economic value of biodiversity, are a crucial tool for conserving and promoting the sustainable use of the Sundarbans' biodiversity. After describing the study area, a novel integrative development model, the potential for sustainable provision of private, public goods, and ecosystem services and the factors threatening them, the paper concludes with four policy suggestions that may assist in enabling biodiversity conservation and sustainable use in the Sundarbans.

Policy interventions in health and safety: What works and when--Evidence from the UK

2013 ◽  
Author(s):  
David Hollis ◽  
Stavroula Leka ◽  
Aditya Jain ◽  
Nicholas J. A. Andreou ◽  
Gerard Zwetsloot
Keyword(s):  
Health And Safety ◽  
Policy Interventions ◽  
What Works ◽  
The Uk

Discontinuous Institutional Alternatives in the Context of Economy Deregulation

2004 ◽  
pp. 94-110 ◽  
Author(s):  
A. Shastitko
Keyword(s):  
Market Failure ◽  
Transaction Management ◽  
Market Failures ◽  
Relative Cost ◽  
State Participation

Various ways of state participation in the mechanisms of transaction management are considered in the article. Differences between compensation and elimination of the market failures are identified. Opportunities and risks of non-regulatory alternatives usage as a mean of market failure compensation are described. Based on classification of goods correlated to relative cost of their useful characteristics evaluation (search, experience, merit) questions of institutional alternatives in three areas (political, financial and commodity) are examined.

Analysis of relations in the state sector of Russian public procurement

2018 ◽  
pp. 106-126
Author(s):  
O. V. Anchishkina
Keyword(s):  
Current Practice ◽  
Public Procurement ◽  
The State ◽  
Market Failures ◽  
Administrative System ◽  
State Sector ◽  
Contractual Relations ◽  
State Organizations ◽  
State Organization ◽  
Negative Factors

The paper deals with a special sector of public procurement — G2G, in which state organizations act as both customers and suppliers. The analysis shows the convergence between contractual and administrative relations and risks of transferring the negative factors, responsible for market failures, into the administrative system, as well as the changing nature of the state organization. Budget losses in the sector G2G are revealed and estimated. There are doubts, whether the current practice of substitution of market-based instruments for administrative requirements is able to maintain integrity of public procurement in the situation of growing strategic challenges. Measures are proposed for the adjustment and privatization of contractual relations.

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