Question

How could government intervention be justified in the market failure of public goods, ie. public health?

Answer 1

There are four types of market failure : Public goods is one of them.

Common examples of public goods include public health, national defence and the best quality of environment

Government has the power to eliminate the roots of market failure in public goods. The governments have their own set of efficiencies. As we see, it is the governments role in the providing good quality amenities of health care to the public. There is good option for government of direct provision. Government can see whether the production of public goods or their distribution is appropriate or not. In India, the government provide the public health centre(PHC) to the public for trivial cost.

The government can restrict the amount of pollution emmissions from a particular productive activity. Government can intervene where it is needed. They can promote health schemes for public. One of the most important role of the government is to ensure that these public facilities are made available to everyone. Only the government maintain certain public facilities. Safe drinking water and sanitation are critical determinants of health government can focus on them.Indian government has started a program named as 'Rajiv Gandhi Jivandayi Yojana', it is the sceme made for each and every citizen who are below the poverty line. There is a potential for government intervention to move inefficient markets closer to the efficiant solution.   

In short, government intervention can correct the market failure of public goods including public health.