iOS app Android app

Market Failure

Will Europe Scrap Its Renewables Target? That Would Be Good News for the Economy and for the Environment

Robert Stavins | Posted 03.20.2014 | Green
Robert Stavins

Without the renewables mandate, the cap being planned for the EU ETS will be achieved at lower cost and will foster greater incentives for climate-friendly technological change.

The 4 (or 5) Worst Market Failures in Human History

Stan Sorscher | Posted 11.04.2013 | Business
Stan Sorscher

A familiar mantra of capitalism guides me: Markets are powerful and efficient. But I'm also a realist, so I temper that mantra: Markets are powerful and efficient. And markets fail. However, American economists turn their heads away at the mention of it, because it sounds like heresy.

7 Important Examples Of How Markets Can Fail

The Fiscal Times | Mark Thoma | Posted 06.20.2013 | Business

Fiscal Times: Many people on the political right believe that free markets are the solution to most any problem. For example, Senator Pat Roberts (...

Can Market Forces Really Be Employed to Address Climate Change?

Robert Stavins | Posted 07.29.2012 | Green
Robert Stavins

Unlike the environmental threats addressed successfully in past U.S. legislation, climate change is essentially unobservable to the general population.

Reflections on Twenty Years of Policy Innovation

Robert Stavins | Posted 04.08.2012 | Green
Robert Stavins

In 2009, the U.S. Congress considered but ultimately failed to enact legislation aimed at limiting U.S. greenhouse-gas (GHG) emissions. The bill unde...

Economics of the Environment

Robert Stavins | Posted 03.31.2012 | Green
Robert Stavins

The Sixth Edition of Economics of the Environment: Selected Readings has just been published by W. W. Norton & Company of New York and London. Throug...

Industrial Policies for Economic Development

Stan Sorscher | Posted 01.21.2012 | Business
Stan Sorscher

When a company comes to government, we should have conditions that encourage production to stick in our local economy. We should see a clear public good that raises the standard of living for workers and communities.

Market Irrationality in the Law School 'Arms Race'

Daniel J. H. Greenwood | Posted 07.06.2011 | College
Daniel J. H. Greenwood

Law schools depend on their graduates being able to get jobs, and graduates' ability to get jobs depends on USNWR rankings. The consequence is a market-induced disaster.

Shh! (Or, Why Your Screaming Baby Should Have You Worried)

Justin Snider | Posted 05.25.2011 | Comedy
Justin Snider

You're trapped on a cross-country flight and, in the row behind you, two parents are sitting happily with a 12-month-old baby. The baby is preternaturally silent. This will not last.

When the Market Fails

Craig K. Comstock | Posted 05.25.2011 | Green
Craig K. Comstock

The market fails at giving a timely signal to prepare for "peak oil." Given that we can't invest trillions on the basis of mere speculation, where are we going to get the data on the basis of which to prepare in time?

Group-think Caused the Market to Fail

Stan Sorscher | Posted 05.25.2011 | Business
Stan Sorscher

It is difficult to get a man to understand something, when his salary depends upon his not understanding it!

Paulson: Market Failure A Distinct Possibility

AP | Martin Crutsinger | Posted 05.25.2011 | Business

The Bush administration is working to combat the country's severe housing crisis but there is no simple solution, Treasury Secretary Henry Paulson sai...