Which of the following scenarios is most likely to be classified as a cause of government failure rather than market failure?
A state-funded subsidy for electric vehicles that leads to administrative and distortionary costs that exceed the environmental benefits
Under-investment in research and development for renewable energy because private firms cannot fully appropriate the positive externalities
The over-extraction of water from a shared aquifer by commercial farms due to the absence of defined property rights
Consumers continuing to purchase high-emission diesel vehicles because they are unaware of the long-term respiratory health costs
