Economics

Central to ecological economics is the notion of market failure. Market malfunction means that markets go incorrect to assign assets efficiently. As asserted by Hanley, Shogren, and White (2007) in their textbook Environmental Economics: "A market malfunction happens when the market does not assign scarce assets to develop the utmost communal welfare. A wedge lives between what a personal individual does granted market charges and what humanity might desire him or her to do to defend the environment.

Such a wedge suggests wastefulness or financial inefficiency; assets can be reallocated to make not less than one individual better off without making any ...