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Homework answers / question archive / Find an article (online, in a recent newspaper, or magazine) that illustrates market failure
Find an article (online, in a recent newspaper, or magazine) that illustrates market failure. Respond to the following:
a.If you found an online article, post a link to it. If it is a newspaper or magazine article, cite your source.
b.Provide a summary of the article.
c.Identify the type of market failure. Is it a problem of negative externalities, positive externalities, public goods, or common resources? Could government action improve economic efficiency? Clearly explain your position.
a.
Timesnownews. (2018, August 25th). Delhi is the largest contributor to vehicular pollution in India, here's why. Retrieved October 15th, 2018, from https://www.timesnownews.com/mirror-now/in-focus/article/delhi-largest-contributor-vehicular-pollution-india-cse-study-urban-commute/274756
b.
The article titled "Delhi is the largest contributor to vehicular pollution in India, here's why" by Timesnownews on 25th August 2018 describes how vehicles in Delhi are contributing to pollution in India. The research done by the Centre for Science and Environment (CSE) shows that Delhi, India's capital city, is the highest contributor of vehicular pollution in India. High vehicular emissions in this city result from a high number of private cars.
c.
This type of market failure is a negative externality because the smog from cars pollutes the environment and thus endangering the lives of residents, that is, this activity results in an external cost to the society.
Government intervention can enhance economic efficiency. For example, the government can raise the tax on gasoline to reduce the number of vehicles on the road. Also, the government can set emissions standards for vehicles. Such interventions will help to reduce the amount of pollution caused by cars.
