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1.3 Market failure

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Question 29

Extract C

Rural maritime coastal Doppler radar stations are a public good

Coastal Doppler weather radar stations, operated by regional marine safety boards, transmit real-time local wind, wave-height, and atmospheric pressure data to all vessels navigating the offshore waters. 'SafeHarbour', a non-profit volunteer association, utilizes this data to run free, guided marine safety and navigation workshops for local recreational sailors and amateur fishermen. The regional maritime authority has proposed a policy to prevent local stations from charging these volunteer workshops access fees intended to offset radar maintenance and calibration expenses. While the authority supports charging large commercial freight carriers who request dedicated, high-priority telemetry feeds, it insists that community safety initiatives must receive the data free of charge. Although 'SafeHarbour' workshops transmit the radar feeds to dozens of vessels simultaneously, other independent mariners can still access the raw radar broadcasts freely and concurrently without any loss in signal strength or data quality.

Source: Maritime Safety & Policy Review

With reference to Extract C, assess the statement that rural maritime coastal Doppler radar stations are a public good.

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1.3 Market failure Questions

  1. A Level
  2. /Economics
  3. /1.3 Market failure