Write a short piece that answers and explains the following question: why might a free market in energy produce a suboptimal outcome for overall welfare? This answer should be BASED on the lecture discussion and the course material. You are not expected to do additional research. If you use any online resources they must be referenced and appropriately quoted. The explanation should be clear and detailed and simple, in your own words and clearly written. It might help to imagine you are answering the question from a younger sibling or cousin.
In the process of answering u should summarize at least two concepts we discussed in lecture: ‘the invisible hand’ and ‘externalities’, using those concepts to help answer the central question.
u should illustrating your explanation by using an example drawn from the energy flow charts (https://flowcharts.llnl.gov/commodities/energy) produced by Lawrence Livermore laboratories. Pick one for a country (Canada, the U.S., China or India are obvious ones, but you may pick whichever you want). Use the chart to give you some numbers to discuss, and consider why those might not be the optimal distribution of energy generation. This discussion does not need to be extremely detailed: it can reflect your own opinions and can involve speculation about what could be better or worse.
The entire answer be about 250-500 words. Make sure you edit it sufficiently to avoid typos and grammatical errors. Include a link to the Energy Flow chart that you use.
