Monday, June 24, 2013

We cannot achieve collective goods acting individually

The Observer - Public goods can’t be based on solo actions: "Given a choice, the average person prefers a free-ride, meaning incurring no cost, in enjoying public goods and services. This is because most public goods have what economists call ‘jointness of supply,’ meaning consumption or use by one member of the public does not diminish the supply of the same good or service to others."
Very good. But all public goods are not the same. The subsidy of roads enables climate change and is a free gift to oil industry. In addition, the more individuals use a road, the worse it is for the whole people. Whereas, the more people use public transit, the more the return on the investment, and the less donation to climate change.

No comments:

Post a Comment