学习资料收集于网络，仅供参考 学习资料 Contents 1.0Introduction-p3 2.0Body-p3 2.1Market Failure-p3 2.2Public Goods-p3 2.3Merit Goods-p3 2.4Externalities- p3 2.5Imperfect 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 学习资料收集于网络，仅供参考 学习资料 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 exclusivity crowded public goods, supply vendors is difficult to obtain a normal profit, the market can not effectively supply. Market mechanisms manifested in the effective supply of public goods incompetence, government intervention in the economy but also to provide an important basis. 2.3 Merit Goods Merit Goods means good for consumers but because of consumer ignorance and lack of consumer goods.For example,Medical treatment.Government must control it. If there is a private charge, the price will change as personal thoughts. Once becoming 学习资料收集于网络，仅供参考 学习资料 the formation of private monopolies, it will definitely lead to serious social problems.Government become a socials security. 2.4 Externalities In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved.Paper mills can be estimated earnings according to the market price of paper, you can estimate costs based on elements of the market price. As long as the benefits outweigh the costs, will increase the production of paper. Paper production will pollute water s quality, increased social costs of production. However, there is no pure air market,paper dealer will not be forced to bear the cost of air quality and thus the profits of manufacturers will not include this cost estimate.If government dont intervene it,external effects will never be solved. 2.5 Imperfect Competition. In economic theory, imperfect competition is a type of market structure showing some but not all features of competitive markets.Ideal perfectly competitive market economy, based on the normal order of market economy also fully competitive as a precondition.But it is very hard to come true.On the imperfectly competitive market, manufacturers have a lot of market power, they can influence and even determine the market price.Under normal circumstances, the monopoly will give manufacturers to bring excess economic profit. In the absence of sufficient competition exists but excess economic profit, the monopolist often lack the incentives to innovate, there is no initiative to improve production efficiency, which gives the development of productive forces has brought significant obstacle.So government must intervene.Government become a Macro-control person. 学习资料收集于网络，仅供参考 学习资料 2.6 Climate policy To encourage companies to find cost-effective emission reduction and coping measures, the British government has taken measures to climate change levy and implement an emissions trading system and so on, and funde