Answer to Question #217734 in Macroeconomics for Khan

Question

Identify any five sectors or projects in Pakistan where the
market has failed to determine a true value of the environment and
hence caused a market failure.

Answer 1

Market failure is association with the act that leads to the socially unjust distribution of goods, services or bads as a result of which although it might seem valid from the point of view of a rational economic agent. The effect of the outcome on group isn't justified.

In the case of environmental degradation, the unclear property rights associated with environment considerations often lead to iver exploitation of the environment in terms of water pollution associated with excessive fishing or dumping wastes, emissions leading to concentration of greenhouse gases which contribute significantly to global warming, infrastructural building, and urbanization contributing excessively to soil pollution.

In the case of Pakistan,

More than two fifth of its population depends on fishing and agriculture as livelihood and depending upon scarce resources lead to it's over exploitation further contributing to degredation.