Farms in a valley spray pesticide on their crops. The spray kills bees and reduces the honey harvests of neighbouring beekeepers. Spraying takes place on only a few days each year, so inspectors would find it hard to check every field when it happens, and nobody has yet put a money value on the harm to the beekeepers. The government could use a tax on pesticide, regulation or information provision to reduce this external cost.
Evaluate which of these policies would do most to reduce the harm to the beekeepers.
127 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.