In 2013 the Intergovernmental Panel on Climate Change published clear evidence that the growth in air transport
Question:
In 2013 the Intergovernmental Panel on Climate Change published clear evidence that the growth in air transport was one of the main contributors to climate change.
a. Using a diagram, explain the market failure associated with the increased use of air transport.
b. Discuss the extent to which an indirect tax on air passengers might reduce the demand for air transport.
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a Market failure in the context of air transport refers to the failure of the market to allocate resources efficiently and to internalize the negative ...View the full answer
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Related Book For 
Cambridge International AS And A Level Economics Coursebook
ISBN: 9781107679511
3rd Edition
Authors: Colin Bamford, Susan Grant
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