Environmental Economics and Government Responses to Market Failure

A photograph of smoke billowing out of a stack at a power station.

Closeup of smoke from a stack at the Phillips Power Station of the Duquesne Light Company outside of Pittsburgh, PA in 1975. The company installed wet scrubbers to minimize emissions in a $42 million environmental improvement project. (Image courtesy of the National Archives and Records Administration.)


MIT Course Number


As Taught In

Spring 2005



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Course Description

Course Features

Course Description

This course explores the theory behind and evidence on regulatory, tax, and other government responses to problems of market failure. Special emphasis is given to developing and implementing tools to evaluate environmental policies. Other topics include cost-benefit analysis, measurement of the benefits of non-market goods and costs of regulations, and the evaluation of the impact of regulations in areas such as financial markets, workplace health and safety, consumer product safety, and other contexts.

Related Content

Michael Greenstone. 14.475 Environmental Economics and Government Responses to Market Failure. Spring 2005. Massachusetts Institute of Technology: MIT OpenCourseWare, https://ocw.mit.edu. License: Creative Commons BY-NC-SA.

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