What do Garnaut and Sims propose as a solution to market failure caused by externalities in the energy sector?

Question

BlackTom AI · Accepted Answer

The question asks about Garnaut and Sims' proposed remedy for market failure from externalities in the energy sector. 
Option 1: 'Removal of all government regulations on fossil fuels' would typically worsen externalities and market failure, since deregulation can reduce the government's ability to price or mitigate negative externalities like pollution. This choice conflicts with the standard policy approach that internalizes external costs. 
Option 2: 'Imposition of a carbon solution levy' aligns with classic internalization strategies for externalities: pricing carbon to reflect social costs, incentivizing cleaner energy, and raising revenue for further mitigation or adaptation. This is consistent with economists’ favored tools for reducing negative externalities in energy markets. 
Option 3: 'Complete ban on fossil fuels' is an extreme measure that, while reducing externalities, is generally impractical, economically disruptive, and not the typical proposed policy by Garnaut and Sims, who favor pricing mechanisms and gradual transitions rather than an outright prohibition. 
Option 4: 'Government ownership of all energy resources' would be a radical structural shift toward state ownership, which is not the central instrument proposed by Garnaut and Sims for correcting externalities; their emphasis is more on pricing mechanisms and regulatory signals than wholesale nationalization. 
In summary, the analysis points toward a pricing-based approach as the tool to address externalities, rather than broad deregulation, outright bans, or full nationalization. The option that embodies this pricing and levy concept is the carbon-related levy, while the other options either overstate or misstate the standard intervention strategy.

What do Garnaut and Sims propose as a solution to market failure caused by externalities in the energy sector?单项选择题

类似问题

Including both a credit for increase C sequestration plus a tax on carbon pollution will result in the fastest transition from timber extraction to forest conservation.

What is a major equity concern related to carbon pricing?

Which of the following is NOT one of the four major impacts of carbon pricing discussed in the video?

What is the main objective of a carbon price as explained in En‑ROADS?

A carbon cost would do which of the following?

What was the world's first widely adopted biodiversity policy?

The aim of the Paris Agreement is to ensure that the earth’s preindustrial temperature is not exceeded by more than º Celsius.

The IPCC's mission is to Blank ______.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单