Fallos de Mercado y Regulación Medioambiental (Market Failures and Environmental Regulation), by Juan Delgado
Published in Tratado de Tributacion Medioambiental (F. Becker, L. M. Cazorla y J. Martínez Simancas, eds., 2008). Editorial Aranzadi. April 2008.
This chapter analyses different forms of market failures related to the environment. Apart from the classic examples related to the existence of externalities and public goods, the chapter focuses on the effect of uncertainty and asymmetric information on environmental policies and the interaction between environmental market failures and innovation-related market failures. Such overlap of market failures determines that the design of environmental policies is complex and cannot focus on the resolution of individual market failures in isolation.