Unit 2: Market failure and Government action

The BBC reports that the EU has announced tough new targets for all member states to combat climate change within the next decade.

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7200000/newsid_7204700?redirect=7204783.stm&news=1&nbwm=1&nbram=1&bbwm=1&bbram=1&asb=1 >

a) Using the handout on pros/cons of different government actions to combat market failure, assess the likely success of the package of measures outlined in the clip; ie legislation and a tradable/pollution permit system. Make sure you relate the theory to the EU actions outlined and don't just repeat the theory