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Study Notes

Negative Externalities and Government Intervention

Level:
A-Level
Board:
AQA, Edexcel, IB, OCR

Last updated 2 Jul 2018

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What forms of government intervention might help to correct the market failure from negative externalities?

To many economists interested in environmental problems the key is to internalise external costs and benefits to ensure that those who create the externalities include them when making decisions.

Negative externalities and market failure - revision video
Regulations to address negative externalities - revision video
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