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1.4 Government intervention

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Question 8

A regional authority's taxpayer-funded 'Green Heat Initiative', designed to subsidise the installation of biomass boilers in municipal buildings, has run 250% over budget, led to severe localised air pollution from wood pellets, and ultimately increased greenhouse gas emissions compared to the previous gas heating systems.

Define the term 'government failure'.

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1.4 Government intervention Questions

  1. A Level
  2. /Economics
  3. /1.4 Government intervention