JSGS 802 Public Finance

Assignment 1 – Government Programs and Policy Rationale

Timothy Johnson

Monday, February 7th, 2022

Name of Intervention Name of Intervention Policy Reason for Objective of
Instrument Intervention Intervention
1. Cobequid Pass Incentive Based Failure of Efficiency
Highway Tolls: Policy: User Charges Competition: Public
The province requires goods: Non-rival and
that non-Nova Scotia non-excludable in
registered passenger consumption
and commercial
vehicles pay tolls.
2. Nova Scotia Incentive Based Income Distribution: Equity
Student Assistance Policy: Loans and Mitigating financial
Loan Guarantees barriers to higher
education

3. Province Acquires Direct Public Action: Failure of Efficiency

Dunns Beach: The Public Ownership competition: Public
province acquired 16 Goods:
hectares of coastline. Stewardship aims to
protect the ecological
integrity of the coast.
4. Government of Behavioural Failure of Efficiency
Nova Scotia Approach: Nudge Competition: Negative
Homepage: Externalities.
The background of the Vaccination choices are
site displays images of a form of personal
the COVID-19 virus. behaviours that affect
The first two links others when the good is
available are “COVID- ‘provided’ or ‘not
19 Virus: What Nova provided’ (vaccination
Scotians need to know” reduces viral
and a link to book a transmission, while the
vaccination unvaccinated people
appointment. are more likely to
transmit and contract
the virus, and require
hospitalization).
5. Commitment to Incentive Based Failure of Efficiency
Renewable Policy: Expenditure competition: Negative
Energy/Rebate on Externalities (carbon)
Solar Panels: Province Failure of
offers rebate on solar competition:
water heating panels for Public Goods: rival in
residential and consumption (non-
commercial sectors. renewable energy is
finite)
6. Nova Scotia Direct Public Action: 1. No effective Efficiency (and
Pharmacare Legislation: Fair Drug market: Adverse Equity) The
Pricing Act, Pharmacy selection: asymmetric intervention addresses
Act, Prescription information. market inefficiencies
Monitoring Act 2. Market Power: (for the purpose of
and Insurance Patents allow for prices equitable
Program to be raised without redistribution).
risk of loss of
costumers to
competitors.
7. Nova Scotia’s Cap Incentive Based Failure of Efficiency
and Trade Program Policy: Taxes (though Competition: Negative
not technically a tax; Externalities
“overusers” had to pay
more under this system
and consumers had to
pay higher prices for
carbon)
8. Atlantic Salmon Direct Public Action: Failure of Equity
Regulations Command and Competition: Public
Control Regulation goods: Tragedy of the
Commons. Economic
good that is rivalrous in
consumption and non-
excludable.
9. MADD – Mothers Information Based Failure of Efficiency
Against Drunk Policy: Persuasion Competition: Negative
Driving Ribbon campaign Externalities
accompanies statistics
about drunk driving
fatalities.
10. Dartmouth Non- Direct Public Action, Income Distribution Equity
Profit Housing Society Contracts: Community via subsidies for
(DNPHS) Services (of Nova affordable housing.
Scotia) provides
funding for DNPHS to
oversee and provide
rent subsidies
contingent upon
recipients meeting
eligibility criteria.
Funding is
contractually guided.