30 years: Macroeconomist
In this video, Amit Kara talks about the need for government intervention to tackle the climate change crisis. He explains about market failure, externalities and the case for governments to intervene through Pigouvian taxes such as carbon tax and new regulation.
In this video, Amit Kara talks about the need for government intervention to tackle the climate change crisis. He explains about market failure, externalities and the case for governments to intervene through Pigouvian taxes such as carbon tax and new regulation.
12 mins 1 sec
Climate change is an example of market failure, and policy intervention is evident in order to achieve socially optimal levels. This can be achieved through a variety of methods such as a carbon tax, new standards and regulations, or the increased role of financial markets.
Key learning objectives:
Understand what is market failure
Understand what are the two important market failures related to greenhouse gas emissions
Understand how policy intervention can support transition to low carbon economy
Outline how can the financial market play a role in intervention