Economics class: We must pay the cost of carbon if we are to cut it
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This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here. It is part of a special Climate Change for Schools report.
Click to read the article below and then answer the questions:
Distinguish between market failure and government failure
With reference to the lemonade can, use a market failure diagram to analyse the deadweight welfare loss associated with a) a negative production externality; and b) a negative consumption externality
Which policies are often used by governments to reduce externalities?
Evaluate the effectiveness of a carbon tax
Gavin Clarke, Emmanuel College