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1.8 The market mechanism, market failure and government intervention in markets

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Question 18
Extract G: Estimated annual costs and benefits of Industrial Emissions Monitors (IEMs) and Municipal Waste Scanners (MWSs) across six administrative regions
Number of active unitsAnnual monitoring & enforcement costs (£000)Annual fine revenue collected (£000)Annual value of environmental damage reduction (£000)
Industrial Emissions Monitors (IEMs)1207 5004 80024 000
Municipal Waste Scanners (MWSs)4003 2009 60014 400

Note: (i) Fine revenue has been classified as a financial benefit for regional authorities rather than as a cost to industrial or waste operators. (ii) Municipal Waste Scanners detect unauthorized commercial disposal at public processing sites during restricted periods.

Using Extract G, identify two significant points of comparison between the costs and the benefits of the two types of monitoring technology.

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1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets