AS Paper 1, November 2020Introduction to Markets and Market Failure

AS Paper 1, November 2020, Q3(b)

Explain an opportunity cost to the government of granting subsidies to energy suppliers to install loft insulation.

Short answerExplain3 marks

Context

The ‘Energy Company Obligation’ is the government’s term for its programme to make houses in the UK more energy efficient.

Specification topics

The economic problemIndirect taxes and subsidies

Revision notes

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