HND 微观经济学1.doc

Contents 1.0 Introduction-p32.0 Body-p32.1 Market Failure-p32.2 Public Goods-p32.3 Merit Goods-p32.4 Externalities- p32.5 Imperfect Competion-p4 2.6 Climate policy-p5 2.6.1Climate plan-p5 2.6.2Instruments-p5 2.6.3Result-p5 3.0Conclusion-p64.0Reference-p65.0Appendix-p71.0 IntroductionThis reports aim is to explain market failure and the role of government in public goods ,merit goods, externalities and imperfect competition .It also analysis the policy about climate in UK.2.0 Maintain body2.1 Market failureIn economics, market failure is a situation in which the allocation of goods and services by a free market is not efficient.Market failures can be viewed as scenarios where individuals pursuit of pure self-interest leads to results that are not efficient that can be improved upon from the societal point of view.2.2 Public goodsThe first category is a pure public good, is both non-exclusive and non-competitive; characteristics of the second category of public goods is a non-competitive on the consumer, but it can easily be done less exclusive, some scholars such articles image called club goods; the third category of public goods and club goods is just the opposite, namely competitive in the consumer, but it can not effectively discharge him, some scholars such items as a shared resource or common-pool resource items.But for those with higher implementation costs or smaller scale of demand exclusivity crowded public goods, supply vendors is difficult to obtain a normal profit, the market can not effectively supply. Market mechanisms manifested in the effective supply of public goods incompetence, government intervention in the economy but also to provide an important basis.2.3 Merit GoodsMerit Goods means good for consumers but because of consumer ignorance and lack of consumer goods.For example,Medical treatment.Government must control it. If there is a private charge, the price will change as personal thoughts. Once becoming the formation of private monopolies, it will definitely lead to serious social problems.Government become a socials security.2.4 Externalities In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.If there are external benefits, such as in public safety, less of the good may be produced than would be the case if the producer were to receive payment for the external benefits to others. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved.Paper mills can be estimated earnings according to the market price of paper, you can estimate costs based on elements of the market price. As long as the benefits outweigh the costs, will increase the production of paper. Paper production will pollute waters quality, increased social costs of production. However, there is no pure air market,paper dealer will not be forced to bear the cost of air quality and thus the profits of manufacturers will not include this cost estimate.If government dont intervene it,external effects will never be solved.2.5 Imperfect Competition. In economic theory, imperfect competition is a type of market structure showing some but not all features of competitive markets.Ideal perfectly competitive market economy, based on the normal order of market economy also fully competitive as a precondition.But it is very hard to come true.On the imperfectly competitive market, manufacturers have a lot of market power, they can influence and even determine the market price.Under normal circumstances, the monopoly will give manufacturers to bring excess economic profit. In the absence of sufficient competition exists but excess economic profit, the monopolist often lack the incentives to innovate, there is no initiative to improve production efficiency, which gives the development of productive forces has brought significant obstacle.So government must intervene.Government become a Macro-control person.2.6 Climate policyTo encourage companies to find cost-effective emission reduction and coping measures, the British government has taken measures to climate change levy and implement an emissions trading system and so on, and funded the establishment of Carbon Trust to provide relevant advice and services for enterprises and the public.2.6.1 Climate Change PlanAgainst the greenhouse effect, in November 2000 the British issued a Climate Change Plan, stated to reach all types of industry Kyoto Protocol other emission reduction targets, is scheduled to start from April 2001 climate change levy .It is benefit to reduce the emission of GHG2.6.2 InstrumentBritain was the worlds first country to introduce a long-term legislative framework to tackle climate change, Climate Change Bill in November 2007 at the Congress started, March 31, 2008 by House of Lords, currently in the House of Commons discussion, the goal is to finish in the fall of 2008 legislative program, to attain formal approval.2.6.3 ResultAccording to the latest annual report of the July 17, 2008 release, the 2007 UK carbon dioxide emissionPut the total was 543.7 million tons, compared to emissions in 2006, reducing the 2%; relative reduction 13% in 1990; in 2010 is expected to be able to achieve reduction of 15.5%, which is the first time in 2007 than the year the report is expected to be done to reduce emissions 18%, it seems that the situation is not optimistic, but it does get improvement with some extent.3.0 ConclusionMain economic goals of the government are to adjust the market, make the market good and fast developed.Market failure caused by a series of economic problems, the government must launched more effective policies to prevent the emergence of market failure.Perfect climate policy will help to improve climatic conditionsEU as a group of countries, the emission reduction targets under the Kyoto Protocol commitment is to the first commitment period (2008-2012) in 1990 on the basis of emissions 8%. The EU in turn the emission reduction targets internally secondary decomposition, make adjustments based on country-specific circumstances. Low level of development in some countries, like Spain, Portugal, etc., to allow their obligations lightly, while the ultra out of the reductions within the EU accounted for mainly by the leadership of the two great powers - Britain and Germany - to bear.Britain assumed emission reduction obligations for 12.5%, while domestic emission reduction targets established by the UK higher plan in 2010 based on emissions in 1990 by 20% to 60% by 2050. In order to complete the reduction targets, the British established a relatively complete system of domestic climate policy. UK Department for Environment, Food and Rural Affairs as the main department responsible for climate policy, were launched national programs to address climate change in 2000 and twice in 2006, and since 2007, to submit annual reports to assess and report annually to Congress on Climate Change policy implementation and effectiveness.According to the latest annual report of the July 17, 2008 release, the total carbon dioxide emissions from the United Kingdom in 2007 was 543.7 million tons, compared to emissions in 2006, reducing the 2%; relative reduction 13% in 1990; expected 2010 15.5% reduction can do this the first time in 2007 than the annual report is expected to be done to reduce emissions 18%, it seems that the situation is not optimistic. Although 20 percent of emissions from domestic objectives there is a gap, but the completion of the amount still exceeded its statutory obligations, visible emissions problem on British attitudes are more positive.The Guardian 2007-03-27For the greenhouse effect, in November 2000 the British issued a Climate Change Plan, stated to reach all types of industry, Kyoto Protocol other emission reduction targets, is scheduled to start from April 2001 climate change levy tax. As of the end of March 2001, the British government (including the environment, transport and local government) and 40 industry groups signed a climate change levy agreement (Climlate Change Agreement). Agreement, the industry may choose to cap emissions manner or mode of production of individual units set protocol targets, the government then set a target to reduce the industry on the basis of 20% to 80% of the climate change levy. If no agreement is reached after 2 years reduction targets are, you can not continue to enjoy tax preferential treatment.Faced with diverse and complicated environmental issues, the British government and the industry as early as 1972 began to adopt environmental agreements as a means of environmental policy. At first, the British government in waste treatment countermeasure has warned that if the voluntary program was unable to reach a satisfactory established goals, the Act will take control. In recent years, the United Kingdom when modifying the provisions of the Finance Act, from April 2001 to levy taxes to climate change and to take the government and the energy consumption of industrial environmental agreements signed ways to improve energy efficiency and reduce emissions by up to give businesses mitigate 80 % discount rates.Companies are obliged to use energy information, reports production numbers to the Ministry of Environment. Ministry of Environment can appoint an independent supervisor (usually non-governmental organizations) in check, if the goal is to complete the identification card issued by the tax authorities with the identification certificate automatically concessions. While the above enterprise environmental agreements signed between the Government and the taxes associated with the content, is a legal agreement, but the government and the industry never will be as voluntary agreements, as a gentleman agreement on the nature of the non-binding law force.Definition of market failureMarket failures have negative effects on the economy because an optimal allocation of resources is not attained. In other words, the social costs of producing the good or service (all of the opportunity costs of the input resources used in its creation) are not minimized, and this results in a waste of some resources. Take, for example, the common argument against minimum wage laws. Minimum wage laws set wages above the going market-clearing wage in