Question

Is EPA providing a public good for US? What are some of the problem with public goods? What's the free rider problem? Does the free rider problem justify the existence of EPA? please try to be as detailed as possible.

here is a short youtube video to watch

https://www.youtube.com/watch?v=YHLSENkD6rk

https://youtu.be/PV9Lm17yWN8

Answer 1

Yes, when the federal funds are directed to help overcome the issue of air pollution during winter, it is a form of the public good as it is helping all the citizens to deal with the issue of pollution.

The public good can be defined as a product or service which is facilitated without profit to all members of a society, either by the government or by a private individual or organization.

The main issue with the public goods is that they have the problem of free rider associated with it. It simply indicates that it is not possible to exclude any individual from utilizing these goods once these products or services are facilitated. Thus there are no associated incentives for the individuals to pay for the products and these public goods as these services and products are also available without paying for these.

·         However, this will lead to there being no good being provided.

·         Therefore there will be social inefficiency.

·         Therefore there will be a need for the government to provide it directly out of general taxation.