Wednesday, January 07, 2009

Unit 1: Govt action to overcome market failure: The fading out of traditional lightbulbs

The BBC reports the start of the demise of the traditional lightbulb. Some great footage of production

a) What are the negative externalities asociated with traditional lightbulbs?
b) What type of policy is the EU using to reduce the market failure?
c) To what extent do you believe the policy will succeed?
d) To what extent could the new energy efficient lightbulbs be considered to be merit goods?

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