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

Graham Watson

9th September 2016

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.

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.

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