This session is intended to give an overview of what policy instruments are available for addressing market failure. We will present an overview of policy instruments and start to discuss environmental policy instruments, with a particular focus on (i) environmental performance and technology standards, and (ii) environmental taxes and abatement subsidies.

Reading: S&C, Ch. 4 & 5

Before coming to Lecture 7 (26 January), please:

Watch Clips 11, 12 and 13 (note that we had to switch around two of the lectures this year, which explains the out-of-order numbering) by my predecessor on the course, Marion Dupoux
Read these additional notes on regulation of market failure
Answer the short quiz
Start thinking about how to solve the exercises. It does not matter if you don't manage to fully solve them on your own, but do think about them before class
Participate in the discussion forum ahead of the Q&A in class

In class, my plan is that we will focus on the following activities:

Work in groups on how to regulate different market failures (Exercise 1), and discuss some real-world examples of how this can be done
Exercise 2

All the best,
Claes

nek_cek 2.jpg