Question 1
a) Explain the two different views of Government (public interest versus private interest). In reality, it is believed that both the two different types of government regulation co-exist.
b) Which view of Government does this article support? Why?
Question 2
a) Explain the criteria for a good emissions reduction policy.
b) Please use the information contained in this article to evaluate the Emissions Reduction Fund –which is Australia’s key policy – against the criteria for a good emissions reduction policy.
The public interest view of government is that the Government acts to correct inequitable and inefficient market outcomes. It increases public welfare as a whole by providing public goods, increasing the consumption of goods with positive externalities and discouraging the production of goods with negative externalities. This includes actions to redress market
