The consumption of domestic loft insulation retrofits generates significant external benefits, such as decreased regional carbon emissions, reduced grid instability during peak periods, and lower public expenditure on treating cold-related winter illnesses.
Draw an externalities diagram to show the market failure that arises from the free-market consumption of domestic loft insulation retrofits.
54 exam-style questions on Edexcel A A Level Economics 1.3.2 Externalities. Each one has a worked solution and a mark scheme showing where the marks go.