A public bad, in

economics Economics () is the social science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and intera ...

, is the symmetrical opposite of a public good.

Air pollution Air pollution is the contamination of air due to the presence of substances in the atmosphere that are harmful to the health of humans and other living beings, or cause damage to the climate or to materials. There are many different types ...

is the most obvious example since it is non-excludable and non-rival, and negatively affects welfare.For current definitions of public bads see: Charles D. Kolstad, ''Environmental Economics'' Second Edition . Whereas public goods are typically under-provided by decentralized decision making (the market), public bad will generally be over-provided, since the parties generating the public bad do not account for the negative effects (or

externality In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...

) imposed on others. One possibility to mitigate the existence of public bad is the intervention of a third party, typically the state. In "

green economics A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politi ...

", it is a

good In most contexts, the concept of good denotes the conduct that should be preferred when posed with a choice between possible actions. Good is generally considered to be the opposite of evil and is of interest in the study of ethics, morality, ph ...

that produces socially undesirable results (or an externality in standard economics). Most "green economists" advise

measuring Measurement is the quantification of attributes of an object or event, which can be used to compare with other objects or events. In other words, measurement is a process of determining how large or small a physical quantity is as compared t ...

such impacts back to the present from the seventh generation. Thus in the golf course example, both the recreation and the negative impacts from deforestation, associated

habitat In ecology, the term habitat summarises the array of resources, physical and biotic factors that are present in an area, such as to support the survival and reproduction of a particular species. A species habitat can be seen as the physical ...

and

biodiversity loss Biodiversity loss includes the worldwide extinction of different species, as well as the local reduction or loss of species in a certain habitat, resulting in a loss of biological diversity. The latter phenomenon can be temporary or permanent, de ...

, and

pesticide Pesticides are substances that are meant to control pests. This includes herbicide, insecticide, nematicide, molluscicide, piscicide, avicide, rodenticide, bactericide, insect repellent, animal repellent, microbicide, fungicide, and lampri ...

toxicity would be estimated across those generations and some

amortization Amortization or amortisation may refer to: * The process by which loan principal decreases over the life of an amortizing loan * Amortization (accounting), the expensing of acquisition cost minus the residual value of intangible assets in a system ...

applied to determine whether the golf course was a

public benefit In philosophy, economics, and political science, the common good (also commonwealth, general welfare, or public benefit) is either what is shared and beneficial for all or most members of a given community, or alternatively, what is achieved by c ...

or a public bad from the point of view of that seventh generation. Green economists argue that the costs of public bads are hidden as

externalities In economics, an externality or external cost is an indirect cost or benefit to an uninvolved third party that arises as an effect of another party's (or parties') activity. Externalities can be considered as unpriced goods involved in either co ...

from the businesses that cause them — meaning the market is not working correctly. The legal challenge is to create a system that takes into account these costs. The

United States Environmental Protection Agency The Environmental Protection Agency (EPA) is an independent executive agency of the United States federal government tasked with environmental protection matters. President Richard Nixon proposed the establishment of EPA on July 9, 1970; it be ...

is an example of an attempt to make sure the costs of public bads are taken into account, although some groups on the right and left have criticized the value of its efforts.

References

{{DEFAULTSORT:Public Bad Welfare economics

Bad Bad or BAD may refer to: Common meanings *Evil, the opposite of moral good * Erroneous, inaccurate or incorrect * Unhealthy, or counter to well-being * Antagonist, the threat or obstacle of moral good Acronyms * BAD-2, a Soviet armored troll ...

See also

References