Keywords: energy, externalities, heating sector, public goods, Germany, government intervention, planning failure, market failure
Market versus planning failures: the case of the German heating sector
One major reason for the waste of resources is market failures. Another important reason is planning failures in governmental interventions that exactly aim at the alleviation of these market failures. In this paper, we will illustrate, by way of example, how these failures may interact. Furthermore, we present a way out from the illustrated example's dilemma which results from the German government's interventions in the home heating sector.