Like the free market, the government may also fail to address environmental issues in the most economically efficient manner.

As in the case of the problem of externalities, members of the government often do not bear the full costs of their actions.  The government, like a business, can easily pollute and not necessarily have to pay for the costs of doing so.

Another major area of concern is that government officials lack the information required to act in the most economically efficient way.  This has often been the cause of unsuccessful environmental policies.  Without knowing the full impact of each of their choices, government officials cannot possibly evaluate their decision as soundly as they should.

In order to remain in power, politicians are also dependent upon the people.  This always applies to a certain degree whether or not the politicians are elected, but it is definitely a more powerful factor if the politicians do not need the support of voters.

This can cause several problems.  For one thing, government officials may attempt to satisfy only those who vote, or hold political power.  They may favor a geographic area, providing it with superior environmental conditions, for the purpose of receiving its votes. 

A politician might also cater to a specific interest group or a business that could help the politician in the future, putting one group's well-being above the public interest.  One of the most important problems is that politicians seldom need the support of people who will be born decades into the future, and may thus enact short-sighted environmental policies.

Finally, government bureaucracy can produce government failure as well.  Bureaucrats may be concerned more about their personal welfare than about the public interest, and could avoid taking risks or seek to cover up problems.