Abstract: Chapter 7 showed that market failure (the presence of externalities and imperfect competition in product markets) may give rise to agricultural chemicals which will accumulate in the environment to a socially excessive level. It is the role of governments to intervene to construct institutions to counteract the market failure. Yet all too often, government intervention serves only to exacerbate the original problem by supplying an inappropriate or ineffective institution; such an event is termed a ‘regulatory failure’. In this chapter, various sources of regulatory failure are examined.
Publication Year: 1998
Publication Date: 1998-12-10
Language: en
Type: book-chapter
Indexed In: ['crossref']
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