October 2015 will see England introduce a charge of 5p for plastic bags. Early evidence from Scotland suggests that a tax on plastic bags can lead to a significant fall in demand. Supermarkets in Scotland reported an 80% fall in use of plastic bags a month after the charge was introduced. (Times). A study in …
A missing market is a type of market failure. A missing market means that there is some obstruction to an efficient free market which would enable a Pareto efficient distribution of resources but for various reasons this market doesn’t exist.
The UK has one of the highest tax rates on petrol / diesel in Europe – roughly 60% of the final price of petrol goes to the government in excise duty or VAT. UK fuel duty is currently 58p per litre for petrol and diesel VAT accounts for 20-25p per litre The product cost is …
In recent years the cost of producing solar energy has fallen dramatically. Discuss the economic effects of cheaper solar power on the energy industry and wider economic welfare. Solar power is an alternative energy source to coal and natural gas. Solar power also has a significant environmental advantage over traditional fossil fuels. It is renewable. …
Free market economics believes government intervention should be limited to the protection of private property. It is advocated by many economists especially in the Chicago, and Austrian school of Economics. However, although free markets have advantages, such as greater efficiency, there are several criticisms levelled at purely free market economies. Criticisms of free-market economics Inequality. …
Readers Question: Discuss the case for and against relying on the market mechanism to produce clean alternatives sources of energy that can replace fossil fuels such as oil and coal. (15) Fossil fuels are non-renewable resources. Therefore, as they run out, the price will rise. This will create an incentive for firms to look for …