Market failure occurs in case of most of the environmental goods, because

Many environmental services have public-good properties: one person’s enjoyment does not reduce another’s and exclusion is difficult. That combination creates free-riding and underprovision. Rivalry or excludability alone does not establish the stated public-good failure; non-rivalry concerns consumption rather than the source’s listed alternative of production. Some environmental resources are common-pool and rival, so “most” is a broad generalization.