HND 微观经济学1.doc

Contents Introduction------------------------------------------p3 Body---------------------------------------------------p3 Market Failure-------------------------------------p3 Public Goods---------------------------------------p3 Merit Goods----------------------------------------p3 Externalities--------------------------------------- p3 Imperfect Competion-----------------------------p4 2.6 Climate policy----------------------------------------p5 2.6.1Climate plan------------------------------------p5 2.6.2Instruments-------------------------------------p5 2.6.3Result--------------------------------------------p5 3.0Conclusion------------------------------------------------p6 4.0Reference--------------------------------------------------p6 5.0Appendix-------------------------------------------------p7 1.0 Introduction This report’s aim is to explain market failure and the role of government in public goods ,merit goods, externalities and imperfect competition .It also analysis the policy about climate in UK. 2.0 Maintain body 2.1 Market failure In economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient.Market failures can be viewed as scenarios where individuals pursuit of pure self-interest leads to results that are not efficient – that can be improved upon from the societal point of view. 2.2 Public goods The first category is a pure public good, is both non-exclusive and non-competitive; characteristics of the second category of public goods is a non-competitive on the consumer, but it can easily be done less exclusive, some scholars such articles image called club goods; the third category of public goods and club goods is just the opposite, namely competitive in the consumer, but it can not effectively discharge him, some scholars such items as a shared resource or common-pool resource items.But for those with higher implementation costs or smaller scale of demand exclusi