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Topic 9: Market failure and government intervention

Lecture handouts

Market failure handout

Government policy handout 1 / handout 2

Market failure & Policy – Primary reading

Sloman et al (2012), chapter 11–12 [or Sloman and Wride (2009), ch 11-12]

Benkler, Yochai (2006), The Wealth of Networks, New Haven: Yale University Press
[full text pdf version available online]

Boyle, James (2008), The Public Domain: Enclosing the commons of the mind, New Haven: Yale University Press
[full text pdf version available online]

OFT (2009), Government in markets: Why competition matters – a guide for policy makers, Office of Fair Trading, September

Policy examples

Energy Saving Trust (2013), Feed-In Tariffs scheme (FITs), Energy Saving Trust, January

Home Office (2012), Alcohol pricing,

Katz, I (2012), Obama Proving $418 Billion Bailout No Failure as GM Buys, Bloomberg, Dec 20th

Leftly, M (2013), EDF subsidy to put UK on nuclear path, The Independent, Mar 10th

Treanor, H (2012), Bank bailout loses taxpayers £23bn, The Guardian, Dec 31st

Background reading

Arnott, R and Small, K (1994), The economics of traffic congestion, Scientific American, Sept. – Oct.

Economist (2010), Congested roads: Bunged up, The Economist, Mar 15th

Litman, T (2011), Transportation Elasticities: How Prices and Other Factors Affect Travel Behavior, VTPI, Nov 6th

Other: Environment policy – ETS

Sloman et al (2012), chapter 12 [or Sloman and Wride (2009), chapter 12]

Griffiths, A and Wall, S (2007), Applied Economics (11th ed), Harlow: FT Prentice Hall – ch 10

European Commission (2010), Emissions Trading Scheme (EU ETS), EC Commissioner for Climate Action, Nov 15th

European Energy Exchange EU Emissions Allowance spot market

Costanza, R et al (2009), Beyond GDP: The need for new measures of progress?, The Pardee Papers, no. 4, January

Gowdy, J and Erickson, JD (2005), The approach of ecological economics, Cambridge Journal of Economics, v29, pp207-222

Environment policy background

Adam, D (2008), Q&A: The European emissions trading scheme, The Guardian, September 12th

Carrington, D (2011), Europe’s top industrial firms have a cache of 240m pollution permits, The Guardian, June 19th

Guardian (2011), Carbon tax and emissions trading: how countries compare, The Guardian, July 10th

Harvey, F (2011a), UK nets €1bn in carbon permit auctions, The Guardian, Feb 10th

Harvey, F (2011b), World Bank warns of ‘failing’ international carbon market, The Guardian, June 1st

Mansanet-Bataller, M et al (2010), The EUA-sCER Spread: Compliance Strategies and Arbitrage in the European Carbon Market, MISSION CLIMAT WORKING PAPER 2010-6 [pdf]

Nichols, W (2011), EU carbon trading emissions rise 3.5%, The Guardian, April 1st

Reuters (2012), EU politicians back plan to withhold CO2 permits, The Guardian, Feb 29th