Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Economics

In the News

Government failure - green heating plans branded a 'total waste of money'

Graham Watson

9th September 2016

Share this content:

If you want an example of government failure, then I give you: Exhibit A. But what does the term mean?

Government failure occurs when government intervention in a market generates an outcome that is less efficient than the outcome generated by the free market. In other words, the size of the original market failure is less than the size of the market failure after the government has intervened.

Share this content:

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

You might also like

In the News Teaching Activity – What policies help raise the birth rate in an economy? (June 2026)

25th June 2026

In the News Teaching Activity – Has nationalisation improved South West Railway? (June 2026)

18th June 2026

Micro Case Study: Ofgem and Price Caps

Topical case studies

Why are petrol prices higher and will the price rise last? (Apr 2026)

13th April 2026

Micro Case Study: Fast Fashion

Topical case studies

In the News Teaching Activity – Why is Scotland planning to introduce rent controls? (Feb 2026)

23rd February 2026

In the News Teaching Activity – Why have ads for junk foods been banned? (Jan 2026)

12th January 2026

In the News Teaching Activity – Why is China trying to increase its birth rate? (Jan 2026)

8th January 2026